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Is there a minimum monthly balance?
A minimum balance means that you have to keep that amount in your account to avoid the monthly charge. -
Will direct deposit reduce or eliminate my monthly fees?
If your employer offers direct deposit that may be a good way to avoid monthly fees and reduce the time you spending standing in line at the bank. -
How many free checks can I write every month?
If you write a lot of checks you may want an account that doesn’t put a limit on the number you can write for free. -
Are there charges for using ATMs at other banks or credit unions?
Many ATMs charge up to $2.50 per withdrawal if you are not their customer and sometimes your bank will charge you as well. Pick a bank with convenient ATM access to avoid fees. -
Can I get a free savings account when I sign up for a checking account?
A no fee savings account can help you build up an emergency savings fund. -
Are credit checks required to open an account?
Many banks use a service called CHEX systems to see if you have any outstanding bounced checks and will not let you open an account until you have cleared those debts.
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Banks v. Credit Unions A bank is a business that offers financial services such as deposits, checking and savings accounts, and loans. There are many different types of banking institutions including national banks, state chartered banks, federal savings banks and savings and loans associations. All of these financial organizations offer certain basic services; here we will refer to them all as “banks.” Banks make money from investing your money and by charging for their services. Deposits in a bank are insured by the Federal Deposit Insurance Corporation (FDIC) up to $100,000. A credit union is a nonprofit financial institution that provides banking services to specific groups of people, like teachers, union members, government workers, people in certain neighborhoods, and their families. Services are generally the same as those offered at banks, but they often cost less. Credit unions also make money from investing your money, but they pass the profits on to their members through lower fees and better interest rates. You have to be a member to keep your money there. Credit union members own the institution and have a right to elect its board of directors; they can also be elected to serve as board members. Like banks, credit union deposits are insured by the National Credit Union Insurance Administration (NCUIA) for up to $100,000. Choosing the Right Account What comes to mind when you think about checking and savings accounts? If you watch TV, listen to the radio, and look at billboards on the bus or subway system, you’ve probably noticed there are lots of options to choose from. What kind of account will fit your personal needs? Ask yourself the following questions to help determine what kind of account will work best for you. |
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