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Minimum balance
Required amount of money in account
You must pay a fee if amount falls below
minimum balance.
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 writing a check for “bouncing a check” (writing it
for more money than is in your account)
Wire transfer fee
Fee for sending money electronically from another bank
More Features of
Checking Accounts
Overdraft protection
Protects you from overdrawing your account
Money is automatically taken from your savings 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
What You Need to Open
An Account
Passport or other official
government I.D.
Copies of immigration
documents
UB Card (may be optional)
Address in U.S.
Minimum required deposit
How to Use your
Checkbook
How to Write a Check
How to Keep Your
Check Register
How to Reconcile Your
Bank Statement
ATM Cards
ATM = Automatic Teller Machine
ATM card = plastic card with a personal code
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
Card which is used to make purchases
Owner of the card is billed for the purchases and pays later
Important ATM Card
Tips
Keep your card in a secure place
Do not write your personal code on your
ATM card or keep it with your card.
Keep your ATM receipts and write them in
your checkbook.
Review your monthly bank statement for
accuracy.
Debit Cards
Plastic card with a personal code
Also used as ATM card
Used to make purchases
Amount of purchase is withdrawn directly
from your bank account
Credit Cards
Plastic card with a personal code
Can be used as ATM card if procedures are
followed
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.
Types of Credit Cards
Private Label
Canonly be used in one place
Examples: Department Stores, Gasoline
Companies
General Label
Can be used in many places
Examples: Bank Card, Major Credit Card
(VISA, American Express, MasterCard,
Discover)
Shopping for a Credit Card
Annual Fee?
Annual Percentage Rate?
Computation Method?
Grace Period?
Finance Charge?
Credit Limit?
Card Incentives?
Maintaining Good Credit
Credit Agencies
The Credit Process
Credit Report
Credit Rating
Credit Score
Equifax
Experian
TransUnion
Warning Signs
Delinquent payments
Default notices
Repossession