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Your Personal Guide to Banking In Under 5 Minutes

Your Personal Guide to Banking…In Under 5 Minutes

Banks and other financial institutions make the majority of their profit from those small, little fees they charge you. These fees can really add up. By the end of the year, you’d be surprised to see how much you have ‘paid’ the bank. You can avoid these fees by following this personal guide to banking.

The most important thing to do is to choose the right bank. Most banks are insured by the Federal Deposit Insurance Corporation. Most credit unions are insured by the National Credit Union Association. Make sure that your money will be insured by either of these organizations before choosing a bank.

The next step is opening an account. A checking account is one of the most basic services to choose from. Many checking accounts are available for free without a minimum balance. Choose an account that has low fees. Here are some insider tips to opening the right account.
-Get a detailed description of every type of account. This description should include any monthly fees or penalties.
-Don’t let your account go into overdraft. Overdraft fees are larger than other fees. The fee for writing a non-sufficient-fund check is $30. Avoid one or more of these fees by not going into overdraft.
-Overdraft protection. Choose a bank and account that offers overdraft protection. You can get this service free-of-charge so don’t pay for it.
-Be an informed member or customer. Make sure you know when your deposits will be ready to avoid any overdraft situations. Be aware of any delays that might cause your deposit to take extra time to be available.

Be careful with your debit or credit card. Choose a card with little or no fees. Make sure you don’t incur fees when you use your card at an ATM that is owned by another bank. You’ll get charged by your bank and the other bank. Make sure you won’t get charged an additional fee if you use your card as a debit card.

It’s smart to add a savings account to your primary account. Choose a savings account that has the highest-interest rate. You’re financial institution will pay you for leaving your money in the savings account. You’ll want to make sure you take advantage of this dividend.

There are many things to know when choosing which financial institution to bank with. Choose the bank or credit union with the most convenient services which include: direct deposit, online banking, automatic bill pay, etc. It is also important to choose a bank that has the lowest fees. Here is some financial advice, don’t get caught paying your financial institution any more than you have to.