1. “Bank Accounts: What You Should Know”

2. Overview Banking Terminology How to Choose the Right Bank
Types of Bank Accounts
Features of Checking Accounts
How to Write a Check
Credit Cards, Debit Cards & ATM Cards
How to Maintain a Good Credit History & Prevent Fraud

3. Banking Terminology Deposit: to put money in the bank
Bank deposit (noun) (also called “credit”)
Withdraw: to take money out of the bank
Withdrawal (noun) (also called “debit”)
Overdraw: to take more money out of your account than is available
PIN: Personal Identification Number

4. More Banking Terminology
Interest: money which your bank account earns
Fixed interest rate: unchanging rate of interest
Variable interest rate: rate of interest which changes regularly
Note: Interest rates change over time and vary greatly. There are many factors that influence them.

5. Questions to Ask Yourself
What will you need to do when you use your bank account?
Save money and earn interest?
Withdraw money frequently?
Write checks?
Wire money home and receive wire transfers?

6. Questions to Ask Yourself (cont.)
How do you want to carry out those banking transactions?
At the bank?
Online?
Using an Automated Teller Machine (ATM)?

7. How to Choose the Right Bank
Location
Is it close to home or campus?
Can I easily walk there?
Will I have easy access to an ATM?
Costs
How much are the fees? (ATM,
wire transfers, etc.)

8. Types of Bank Accounts Checking Accounts Savings Accounts
Permit you to write checks up to the amount of money in the account
Savings Accounts
Earn interest on the money in the account
May not have check-writing or ATM privileges
May have limits on the number of monthly transactions

9. Types of Banking Accounts
Money Market accounts
Permit limited check writing
Pay variable interest
Limits on the number of monthly transactions
Certificates of Deposit (CD’s)
Exist for specified time periods (30 days - 10 years)
Pay fixed or variable interest
Generally, have higher interest rates than savings accounts
Charge a penalty if the money is withdrawn early

10. Features of Checking Accounts
Minimum deposit
Minimum amount of money required to open account
Service fees
Monthly fees
Per check fee
Debit card (ATM) fee
Minimum balance
Required amount of money in the account (not always required)
You must pay a fee if the amount falls below the minimum balance (called an “overdraft fee”)

11. More Features of Checking Accounts
Interest
Interest-bearing accounts pay interest
Interest-free accounts do not pay interest
Other Fees
Nonsufficient Funds (NSF) fee
Fee for “bouncing a check” (writing it for more money than is in your account)
Fee for overdrawing when using a debit card
Wire transfer fee
Fee for sending money electronically to another bank or receiving money from another bank (incoming or outgoing)
Foreign ATM fee
Fee for using another bank’s ATM

12. More Features of Checking Accounts
Overdraft protection
Protects you from overdrawing your account
Money is automatically taken from your account if you write a check or make an ATM withdrawal for too much money.
FDIC protection
Federal Deposit Insurance Corporation
U.S. government agency which insures your bank account up to $100,000 (temporarily changed to $250,000 until December 31, 2013)

13. What You Need to Open a Bank Account
Passport or other official government I.D.
Copies of immigration documents
UB Card (may be optional)
Address in U.S. (not a University office)
Address in your home country
U.S. Phone Number (required by Bank of America)
Minimum required deposit
Proof of enrollment (may be optional)

14. How to Use your Checkbook
4/17/2017
How to Use your Checkbook

15. How to Write a Check University at Buffalo
Write in numbers: How much is the check for?
Joe Student
123 Main Street
Amherst, NY
MM/DD/YYYY
University at Buffalo
100.00
One hundred and 00/
Joe Student
Person #:
Write in letters: Who is the check for?
Write in letters: How much is the check for?
Write today’s date here in this format: Month/Day/Year
Write your UB Person number here
Sign YOUR name here

16. How to Keep Your Check Register

17. How to Reconcile Your Bank Statement

18. ATM Cards
Issued by the bank when you open a checking or savings account
ATM = Automated Teller Machine
Provides 24-hour access to your money
Used to deposit money into or withdraw it from your account
Access to your money is free if you use your bank’s ATM
If you use another bank’s ATM, you may be charged a fee by the other bank and your bank.
Debit card
Card which is used to make purchases
Money is taken directly from the account
Credit card
Owner of the card is billed for the purchases and pays later

19. Important ATM Card Tips
Keep your card in a secure place
Do not write your PIN on your ATM card or keep it with your card.
Do not choose an easy PIN to guess (Ex. “1234” or your birthdate)
Do not share your PIN with anyone else!
Keep your ATM receipts and write them in your checkbook register.

20. Important ATM Card Tips
Put your cash in an envelope before depositing it in an ATM, if necessary.
(Note: Bank of America and HSBC do not use envelopes.)
Review your monthly bank statement for accuracy.

21. Debit Cards An ATM card is sometimes also a debit card
Used to make purchases
Must use a PIN to access your money
Amount of purchase is withdrawn directly from your bank account
Some banks charge a fee each time you use a debit card

22. Credit Cards Used to make purchases
4/17/2017
Credit Cards
Used to make purchases
You will be billed for the amount of the purchase.
If you don’t pay your bill each month, you will be charged interest.
It might be possible to withdraw money, but you will be charged a fee.

23. Types of Credit Cards Private Label General Label
Can only be used in one place
Ex: department stores, gasoline companies
General Label
Can be used in many places
Ex: Bank Card, Major Credit Card (VISA, American Express, MasterCard, Discover)

24. Choosing a Credit Card Annual Fee? Finance Charge (Interest Rate)?
Yearly fee charged to use a credit card
Finance Charge (Interest Rate)?
Interest rates vary greatly (8%-32%, sometimes even higher)
Annual Percentage Rate?
Yearly cost of borrowing

25. Choosing a Credit Card Computation Method? Grace Period? Credit Limit?
How finance charges are calculated
Grace Period?
Allows you avoid finance charges if you pay your balance in full before a certain date
Credit Limit?
Amount of money you are allowed to borrow

26. Choosing a Credit Card (cont.)
Late Fee?
Fee you will be charged if you do not pay the amount due by a certain date
Card Incentives?
Benefits to using a particular credit card
Airline miles, cash back, reward points, etc.

27. Maintaining Good Credit
Credit Agencies
Equifax
Experian
TransUnion
The Credit Process
Credit Report
Annualcreditreport.com
Credit Rating
Credit Score
Establishing a Credit History

28. Things to Do to Establish and Maintain Good Credit
What can everyone do to establish and maintain good credit?
1. Know your budgetary limits
2. Prioritize your needs and wants
3. Pay all bills on time
4. Avoid late fees
5. Monitor your credit card balances
6. Have both a checking and savings account at a
local bank
7. Use your credit card through secure channels
8. Request a copy of your credit report each year

29. Managing Credit Issues and Concerns
Resources and Assistance
Be proactive
Communicate with your bank or creditor
Explore debt consolidation
Consider credit counseling

30. Consumer Credit Counseling Service of Buffalo, Inc.
40 Gardenville Pkwy. Suite 300
West Seneca, NY
Tel. (716)

31. Preventing Fraud
Keep your ATM, debit and credit cards and your checkbook in a safe place.
If your card is lost or stolen, call your bank or credit card company immediately!
Never respond to an request for your bank account information!
Visit for advice about what to do.

32. Preventing Fraud (cont.)
Check your monthly bank statements to be sure they are correct.
Do not accept a personal check from someone you don’t know well.
Beware of scams that ask you to deposit a check!

33. Important Reminders
If you move or change your phone number, be sure to give your bank your new address and phone number!
Be sure to keep your PIN number in a place where no one can find it!

34. Banks with ATM’s at UB
Bank of America
HSBC

35. Bank of America Electronic Banking Debit Card – Keep the change
Bank When You Want, Where You Want
Checking Accounts That Fit Your Schedule
Electronic Banking
Debit Card – Keep the change
Deposit Image ATMs
Text Banking
Online Banking
Optional Bill Pay
Online Paperless Statements

36. Bank of America 1 Full Service ATM on UB’s North Campus
1 Full Service ATM on UB’s South Campus
1 Full Service ATM across the street from the South Campus (next to Tim Horton’s)
Full-service Bank of America banking center, drive-in & ATM ten minutes by foot from UB’s North Campus
Wire transfers

37. HSBC Bank Student / Choice Checking Bank at Work
No monthly or per-check fee for prospective students for 4 years
No minimum balance requirement for prospective students for 4 years
Unlimited check writing
Free online banking & bill payment
Free online bank statements
Free 24-hour telephone banking
Bank at Work
Premium banking packages for students who work at UB and have direct deposit
No-fee MasterCard debit card with unlimited use

38. HSBC Bank 1 ATM on UB’s North Campus 1 ATM on UB’s South Campus
Full-service HSBC branch, drive-through & ATM ten minutes by foot from UB’s South Campus

39. M&T Bank M&T @ College Checking
No monthly service charge or minimum balance
Unlimited check writing
Free M&T Web Banking and Web Bill Pay
Free M&T Visa Check Card (debit card)
4 Free non-M&T ATM transactions per month
4 Surcharge rebates per month
Free first order of 50 checks
Free incoming international and domestic wire transfers
Free PIN/POS (Point of Sale) transactions
Overdraft protection available with free Savings account

40. M&T Bank No ATM’s on campus currently, but that may change
Full service M&T branch, drive-in & 2 ATM’s across from UB’s South Campus

41. Interested in learning more?
“Living on a Shoestring:
How to Live Cheaply as a Student”
Thursday, September 16
3:30-4:30
Capen Hall 31, North Campus
ISSS semester workshops:

42. THANK YOU VERY MUCH!