BANKING 101
What is a bank?
A bank is any financial institution that holds deposits for and lends money to individuals and businesses.
A bank is any financial institution that holds deposits for and lends money to individuals and businesses.
different types of banks
how do you know what to choose?
It is completely up to you. If convenience is important to you as well as ATM access, then a traditional bank is probably your best bet. But if you want the best interest rate and you do not like going to the bank, then perhaps you should try online banking. It all depends on the features you want and feel you need in a bank, in that you have your answer.
what you need to look for
- No minimum balance required for checking accounts, with no monthly maintenance fees and ideally reimburse fees from ATM transactions outside the bank's network
- Lower fees for savings account are better with the best interest rate you can get, (typically interest rates are around 0.06%)
- The more secure your money is, the better; some may argue to then shy away from online banks because they do not provide the same security as traditional banks and credit unions
- Online accessibility and mobile banking is very important! Make sure your bank or credit union has an online presence and mobile app. They can make your life so much easier
- Lower fees for savings account are better with the best interest rate you can get, (typically interest rates are around 0.06%)
- The more secure your money is, the better; some may argue to then shy away from online banks because they do not provide the same security as traditional banks and credit unions
- Online accessibility and mobile banking is very important! Make sure your bank or credit union has an online presence and mobile app. They can make your life so much easier
how to read your bank statement
Looking at a bank statement for the first time can be very daunting, especially if you do not fully understand everything means. But knowing how to read a bank statement correctly, can be very useful in learning to manage your money better and to help avoid careless mistakes.
Your bank statement is a record that summarizes all the transactions in an account since the previous statement. The purpose of going over your bank statement every month is to look for possible discrepancies and to report them to your bank to resolve any errors that may have occurred. Typically the bank is liable for 60 days after the statement comes out, so you must report any issues during that time.
The bank statement will list the beginning and ending balances of your account, any and all deposits and withdrawals, any interest made on the account and any bank fees or service fees. Pay attention to the fees and make sure you understand what the fees are for and why you are being charged them.
Many banks have statements available online. These electronic statements, or e-statements, will provide the same information as a paper bank statement. No matter whether it be online or on paper, it is important to keep records of your statements to help keep track of your money.
Your bank statement is a record that summarizes all the transactions in an account since the previous statement. The purpose of going over your bank statement every month is to look for possible discrepancies and to report them to your bank to resolve any errors that may have occurred. Typically the bank is liable for 60 days after the statement comes out, so you must report any issues during that time.
The bank statement will list the beginning and ending balances of your account, any and all deposits and withdrawals, any interest made on the account and any bank fees or service fees. Pay attention to the fees and make sure you understand what the fees are for and why you are being charged them.
Many banks have statements available online. These electronic statements, or e-statements, will provide the same information as a paper bank statement. No matter whether it be online or on paper, it is important to keep records of your statements to help keep track of your money.