Bank Accounts: What You Should Know

Overview
How to Choose the Right Bank Banking Terminology Types of Bank Accounts Features of Checking Accounts How to Write a Check Other Bank Services

How to Choose the Right Bank

Location
Is it close to home or campus? Will I need a car to get there? Will I have easy access to an Automatic Teller Machine (ATM)?

Services
Is it open when I need to use it? Does it offer the services I need?

How to Choose the Right Bank

Costs

How much are the fees? (ATM, monthly, percheck, etc.)

Requirements to Open an Account

Documents (UB Card, proof of address, etc.) Minimum Balance Minimum Transactions or limits

Banking Terminology
Deposit: to put money in the bank

Bank deposit (noun)

Withdraw: to take money out of the bank

Withdrawal (noun) Overdraw: to take more money out of your account than is available

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

Types of Bank Accounts

Checking 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

Types of Banking Accounts

Money Market accounts

Permit limited check writing Pay variable interest Exist for specified time periods (30 days - 10 years) Pay fixed or variable interest Charge a penalty if the money is withdrawn early

Certificates of Deposit (CDs)

Features of Checking Accounts

Minimum deposit

Minimum amount of money required to open account

Service fees

Monthly statement fee Per check fee Debit card (ATM) fee
Required amount of money in account You must pay a fee if amount falls below minimum balance.

Minimum balance

More Features of Checking Accounts

Interest

Interest-bearing accounts pay interest Interest-free accounts do not pay interest Nonsufficient Funds (NSF) fee

Other Fees

Fee for writing a check for bouncing a check (writing it for more money than is in your account) Fee for sending money electronically from another bank

Wire transfer fee

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. Federal Deposit Insurance Corporation U.S. government agency which insures your bank account up to $100,000

FDIC protection

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 banks ATM

If you use another banks ATM, you may be charged a fee by the other bank and your bank.

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 dont pay your bill each month, you will be charged interest.

Types of Credit Cards

Private Label
Can only 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

Establishing a Credit History

Things to Do to Establish and Maintain Good Credit

What can everyone do to establish and maintain good credit?

1. Pay all bills on time 2. Have both a checking and savings account at a local bank 3. Avoid late fees 4. Know your budgetary limits 5. Monitor your credit card balances 6. Prioritize your needs and wants 7. Request a copy of your credit report each year 8. Use your credit card through secure channels

Managing Credit Issues and Concerns

Warning Signs
Delinquent payments Default notices Repossession Collection agency notices & calls

Managing Credit Issues and Concerns

Resources and Assistance
Be proactive Communicate with your bank or creditor Explore debt consolidation Consider credit counseling

Consumer Credit Counseling Service of Buffalo, Inc. 40 Gardenville Pkwy. Suite 300 West Seneca, NY 14224 Tel. (716) 712-2062

Preventing Fraud
Do not accept a personal check from someone you dont know well. Keep your ATM, debit and credit cards and your checkbook in a safe place. Check your monthly bank statements to be sure the deposits and withdrawals are correct. If your card is lost or stolen, call your bank or credit card company immediately! Avoid carrying large amounts of cash.

Banks with ATMs at UB

HSBC Key Bank M&T Bank

Bank of America
Free Student Checking for 5 years
No monthly charges No minimum balance Free online banking with unlimited bill pay Unlimited check writing Free Bank of America Visa Check Card Free Stuff Happens rebate card

Bank of America
1 Full Service ATM on UBs North Campus (Nov 06) 1 Full Service ATM on UBs South Campus (Nov 06) 1 Full Service ATM across the street from the South Campus (next to Tim Hortons) Full-service Bank of America banking center, drive-in & ATM ten minutes by foot from UBs North Campus Wire transfers

HSBC Bank
Free checking

No monthly or per-check fee No minimum balance requirement Unlimited check writing Free online banking & bill payment Free online bank statements Free 24-hour telephone banking

No-fee MasterCard debit card with unlimited use

HSBC Bank
2 ATMs on UBs North Campus 1 ATM on UBs South Campus Full-service HSBC branch, drive-in & ATM ten minutes by foot from UBs South Campus Wire transfers

M&T Bank
Totally free checking
No monthly or per-check fee No minimum balance requirement Unlimited check writing Free online banking

M&T Bank
Free Visa Debit Card
Use at any STAR, NYCE, CIRRUS or VISA ATM worldwide Unlimited use

2 ATMs on UBs North Campus 2 ATMs on UBs South Campus Full service M&T branch, drive-in & 2 ATMs across from UBs South Campus

THANK YOU VERY MUCH!