186 Unit 2 Managing Your Finances
Accounts and Services
Look for fi nancial institutions that offer the
accounts and services you want in a checking
account. Consider the following features.
Restrictions and Penalties
Ask about minimum balance requirements,
withdrawal limitations, and penalties for over-
drafts or late payments on credit accounts. These
items can increase the cost of services and make
managing your money more complicated.
Fees and Charges
Ask about all fees and charges associated
with the type of account you want. These may
include a maintenance fee, charges for ATM
use, low-balance penalties, check-writing fees,
and check-printing costs. These charges can vary among institutions and
different types of accounts. Higher minimum balance accounts usually
reduce or eliminate these fees.
Interest Rates
Compare the interest rates on interest-bearing checking accounts. In
addition, examine the rates charged to borrow money or use a bank credit
card. Look for high yields on savings and low rates for using credit.
Convenience Services
Look for fi nancial institutions that make banking and other fi nancial
transactions easy for you. Services that save you time and effort include con-
venient hours, ATMs in various locations, online banking, and credit cards.
Checking Account Types
Financial institutions use different names to describe checking account
services they offer. The best account type for you depends largely on the
amount you can deposit, the number of checks you expect to write each
month, the account features you want, and the fees associated with the
account. For interest-bearing accounts, your choice also depends on the
interest rate that deposits earn.
When you shop for a checking account, the following questions can
help you make the best choice:
•
Is there a minimum deposit requirement? If so, what is it?
•
What are the charges if the balance drops below the minimum?
8-4
A checking account is the
most common way of paying
bills.
Bank Tellers
Bank tellers help
customers use their
checking, credit card,
escrow, investment, loan,
and savings accounts.
They also sell savings
bonds, accept payment
for customers’ utility
bills and charge cards,
process certifi cates of
deposit, and sell traveler’s
checks.