Financial Education: Bank On It
What is a Bank
Choosing a Bank
Banks provide various additional services for free or a low fee with some deposit
accounts. It is important to keep track of the fees charged, if any.
The following are common services offered at banks:
Direct Deposit - With direct deposit, your paychecks or benefits
checks are electronically transferred and directly deposited into your account.
The amount of money is immediately available Some banks will not charge the monthly
fees if direct deposit is used.
Money Order - A money order is similar to a check. It is used to
pay bills or make purchases when cash is not accepted. Many businesses sell money
orders for a fee. If you need to use a money order, it is best to shop around for
the best price.
Wire Transfer - This is a method of electronically transferring
money from one bank to another.
- Transfer money between accounts
- Obtain account history, such as most recent deposits or withdrawals
- Stop payment on a check
- Obtain information on branch hours or other information, and
- Report a lost, stolen, or damaged card
Telephone Banking - This allows you to check your account balance
by phone. You may also be able to:
ATM - Use of the ATM requires a card issued by the bank and a personal
identification number or PIN. A PIN is a special password or set of numbers to use
your ATM card. The PIN is used for security purposes, so no one else can access
Debit Card - A debit card is a plastic card sometimes called a
"Check Card". The debit card has a MasterCard® or Visa® logo and a magnetic
strip on the back that allows you to pay for goods and services at stores and other
businesses that accept MasterCard or Visa credit cards.
The debit card also functions as an ATM card. With ATM Cards, you can make deposits
to or withdrawals from your checking account at ATMs. Most debit cards require a
PIN if you use the card as an ATM card.
Loans - This is money you borrow from a bank with a written promise
to pay it back later. Banks charge fees and interest. This is extra money you pay
to borrow the money. You can talk to the customer service representative for more
information about loans offered at a bank.