One institution that can either help you or hurt you financially is your local neighborhood bank. While banks in general are a vital tool to help one save money and offer loans that can help a family buy a home, one must be aware of the good and the bad that are inherent in banking products. Here are some tips.
Online banking is the best thing that has happened to banking since slice bread. For those that are unable to manage their checkbook or would like all information regarding their finances 24/7, online banking is the perfect customer service feature. With online banking, you can see the exact balance of any of your accounts (checking, savings, etc). In addition, you can see which checks have been cashed and if purchases made via a bank debit card have been credited. Online banking is usually either a free service or costs very little each month. While you do need an internet connection and a computer to take full advantage of online banking, many banks also offer a similar service via the telephone.
Debit bank cards are a much better option than your credit card and just as convenient. You can save hundreds of dollars each year by using your debit card instead of a credit card. Debit cards deduct money straight from your checking account. They look like credit cards and are usually accepted where ever traditional credit cards are accepted. Debit bank cards usually are free to use, especially at point of sale (such as a retail store). In many cases, you can easily receive a debit card when you open a checking account.
While ATM banking is convenient, make sure your bank isn’t charging you exorbitant rates to use this convenience. Some banks pile on the charges for using an ATM machine. For instance, you will probably be charged about a dollar or two from your bank every time you use an ATM machine from another bank. In addition, the other bank can charge up to $3 for the service (costing $4 or more just to take money out). While ATM’s are extremely convenient, check with your bank to ensure you don’t pay unnecessary fees when trying to take money out.
Besides ATM fees, beware of other fees such as a bounced check, late credit card payment or using an in branch teller for a transaction. Many banks might offer free checking, however their fees alone can be more than the service is worth. Beware of bank fees. Most banks don’t widely advertise their fees, which means that you will probably find out about them after the fact.
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