Keep in mind that banks are always required to notify you of the fees for their accounts. The best account to choose is usually the one with the lowest fees, regardless of the interest rate. Keep an eye out for potential extra charges when shopping for checking accounts. Ask about monthly fees, check processing fees, and ATM fees. Also be wary of cost-free checking accounts, as the bank may charge you if your balance drops below a certain amount. Also, the charges for printing new checks can often be much higher at your bank than through an outside printing provider. In this…

Checking Accounts Checking accounts provide you with quick, convenient access to your funds. You are able to make deposits as often as you wish, and most banks provide you with an ATM card to access your funds, or to charge debits at stores. Of course, you can also use the conventional method of writing checks. Some checking accounts pay interest. These are called negotiable order of withdrawal (NOW) accounts. The more commonly used type, a demand deposit account, does not pay interest. There are several fees that are associated with checking accounts, other than the check printing fees. These will vary depending on…

There are several features of accounts you should investigate at various banks. Interest Rates Find out what the interest rate is and whether the bank can change it after the account has been established. Also, find out if the bank pays different interest rates based on how much you have in the account, and if so, how it is calculated. Ask when the interest starts being compounded (when they pay you interest based on your principal plus your earned interest). Ask what the annual percentage yield is. This is a rate that will tell you how much interest you will earn on a deposit. Ask the…

This depends on how you plan to use the account. If you want to grow your money and do not need to access it readily, put it in a CD. If you need ready access to your money, a savings account could be a good option. If your primary concern is paying bills, a checking account would be easiest. Remember, if you only write 2-3 checks a month, an MMDA could suit your needs very well. They have a higher rate of return, but also have a higher minimum balance requirement. Checking accounts can be very efficient. They simplify your recordkeeping – if you…

Yes. Here are some tips on how to approach this: See what your fees and charges have been over the past 3 years. Write down your checking needs, i.e. how many checks you write a month, how many ATM visits, how many deposits, how many times you have overdrawn, how often you go below the minimum balance. Take this info and do some research into other banks in the area. Compare their rates and fees to your bank. Go to your bank and ask to speak to a manager. Tell them you want to reduce your banking costs. If they don’t negotiate, bring up…

Only deposit accounts at federally insured depository institutions are protected by the FDIC. Check to see if your bank falls into this category. In general, the government will protect accounts up to $250,000. If you have an account with special ownership, such as a trust, or an account with co-owners, this may change the amount of coverage you receive. If you invest in an annuity or mutual fund with the institution these are usually not protected by the FDIC.

This protects you from the possibility of bouncing checks. If you write a check and do not have sufficient funds, it will draw money from your line of credit to make sure the check goes through. This is a good service for people who are self-employed because if business is seasonal and there are times of the year that have low cash flow, the overdraft protection can help you pay less interest than other forms of borrowing.

This is a federal law that requires depository institutions to inform you of the following: Annual percentage yield and interest rate Costs, fees, extra charges Other info including minimum balance requirements Because of this act, you will get a disclosure of all this info from the bank you are opening an account with. This act also requires that banks provide you with this info upon request. The Act also requires that interest and fee information be provided to you in periodic updates, and that if you have a rollover CD, you will be notified before the maturity date.