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Learn the Basics of Using a Bank

Times are very tough right now in the economic sense. Are you too worried to open a bank account? Have you considered opening a bank account while wondering what is out there and what your banking options are? Have no fear. Opening an account with a financial institution is one of the smartest things you can do for financial security. You will learn about the different types of bank accounts that exist as well as the basics of using a commercial bank.

Have you thought about putting all of your money under your mattress? That is an extremely dangerous thing to do. Why risk it? Banks that carry a FDIC policy usually guarantee each depositor protection on his or her money up to one hundred thousand dollars; however, the limit has been raised to two hundred and fifty thousand dollars and will remain in effect until 2013.

You usually need to have at least twenty-five to one hundred dollars to open an account with a bank. You should definitely open a savings account because it usually produces interest for the customer and it can help remove your temptation to spend all of your disposable income.

Consider opening a checking account. This type of account lets you write checks with the money you already have and it enables you to save a heap of money from not having to buy money orders. Additionally, you will not have to deal with a limit on the amount of money you can use - money orders generally do not let you spend more than a few hundred dollars.

Opening a money market account is a good option. It produces a higher yield on interest than a savings account. While this type of account is not FDIC-insured, it has historically been safe.

CDs, or certificates of deposit, are something to consider. These accounts generally require you to put aside hundreds of dollars you cannot touch without being penalized before a particular period of time has expired. The amount of time your CD is in effect can range anywhere from six months to five years. CDs can offer an interest rate that is anywhere between two and five percent. Only open a CD account if you are comfortable putting aside a lot of money without being able to spend it for a long time.

Some banks offer debit cards. A debit card lets you spend money from your checking account at establishments or online without having to pay fees. You are likely to use better financial discipline if you use a debit card instead of a credit card.

Banks offer ATM cards. These cards let you withdraw money from your bank’s automatic teller machine any time of the day. Customers are typically given a pin number to use for ATM cards and debit cards. Keep your pin numbers a secret. Also be careful about using the ATM, especially at night. Do not deposit coins into the ATM because this can ruin the machine.

You can usually find deposit and withdrawal slips at the bank. Fill one out before going to the bank to save time.

Get into the habit of banking online. Banking online lets you transfer money between your different accounts and it lets you check your balances. Go to your bank’s web site to open an online account.

Follow these basics to make your banking experience pleasurable!

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