Overview • How to Choose the Right Bank • Banking Terminology • Types of Bank Accounts • Features of Checking Accounts • How to Write a Check • Other Bank Services
How to Choose the Right Bank • Location • Is it close to home or campus? • Will I need a car to get there? • Will I have easy access to an Automatic Teller Machine (ATM)? • Services • Is it open when I need to use it? • Does it offer the services I need?
How to Choose the Right Bank • Costs • How much are the fees? (ATM, monthly, per-check, etc.) • Requirements to Open an Account • Documents (UB Card, proof of address, etc.) • Minimum Balance • Minimum Transactions or limits
Banking Terminology • Deposit: to put money in the bank • Bank deposit (noun) • Withdraw: to take money out of the bank • Withdrawal (noun) • Overdraw: to take more money out of your account than is available
More Banking Terminology • Interest: money which your bank account earns • Fixed interest rate: unchanging rate of interest • Variable interest rate: rate of interest which changes regularly
Types of Bank Accounts • Checking Accounts • Permit you to write checks up to the amount of money in the account • Savings Accounts • Earn interest on the money in the account • May not have check-writing or ATM privileges
Types of Banking Accounts • Money Market accounts • Permit limited check writing • Pay variable interest • Certificates of Deposit (CD’s) • Exist for specified time periods (30 days - 10 years) • Pay fixed or variable interest • Charge a penalty if the money is withdrawn early
Features of Checking Accounts • Minimum deposit • Minimum amount of money required to open account • Service fees • Monthly statement fee • Per check fee • Debit card (ATM) fee • Minimum balance • Required amount of money in account • You must pay a fee if amount falls below minimum balance.
More Features of Checking Accounts • Interest • Interest-bearing accounts pay interest • Interest-free accounts do not pay interest • Other Fees • Nonsufficient Funds (NSF) fee • Fee for writing a check for “bouncing a check” (writing it for more money than is in your account) • Wire transfer fee • Fee for sending money electronically from another bank
More Features of Checking Accounts • Overdraft protection • Protects you from overdrawing your account • Money is automatically taken from your savings account if you write a check or make an ATM withdrawal for too much money. • FDIC protection • Federal Deposit Insurance Corporation • U.S. government agency which insures your bank account up to $100,000
What You Need to Open An Account • Passport or other official government I.D. • Copies of immigration documents • UB Card (may be optional) • Address in U.S. • Minimum required deposit
ATM Cards • ATM = Automatic Teller Machine • ATM card = plastic card with a personal code • Provides 24-hour access to your money • Used to deposit money into or withdraw it from your account • Access to your money is free if you use your bank’s ATM • If you use another bank’s ATM, you may be charged a fee by the other bank and your bank. • Debit card • Card which is used to make purchases • Money is taken directly from the account • Credit card • Card which is used to make purchases • Owner of the card is billed for the purchases and pays later
Important ATM Card Tips • Keep your card in a secure place • Do not write your personal code on your ATM card or keep it with your card. • Keep your ATM receipts and write them in your checkbook. • Review your monthly bank statement for accuracy.
Debit Cards • Plastic card with a personal code • Also used as ATM card • Used to make purchases • Amount of purchase is withdrawn directly from your bank account
Credit Cards • Plastic card with a personal code • Can be used as ATM card if procedures are followed • Used to make purchases • You will be billed for the amount of the purchase. • If you don’t pay your bill each month, you will be charged interest.
Types of Credit Cards • Private Label • Can only be used in one place • Examples: Department Stores, Gasoline Companies • General Label • Can be used in many places • Examples: Bank Card, Major Credit Card (VISA, American Express, MasterCard, Discover)
Shopping for a Credit Card • Annual Fee? • Annual Percentage Rate? • Computation Method? • Grace Period? • Finance Charge? • Credit Limit? • Card Incentives?
Maintaining Good Credit • Credit Agencies • The Credit Process • Credit Report • Credit Rating • Credit Score • Equifax • Experian • TransUnion • Establishing a Credit History
Things to Do to Establish and Maintain Good Credit • What can everyone do to establish and maintain good credit? • 1. Pay all bills on time • 2. Have both a checking and savings account at a local bank • 3. Avoid late fees • 4. Know your budgetary limits • 5. Monitor your credit card balances • 6. Prioritize your needs and wants • 7. Request a copy of your credit report each year • 8. Use your credit card through secure channels
Managing Credit Issues and Concerns • Warning Signs • Delinquent payments • Default notices • Repossession • Collection agency notices & calls
Managing Credit Issues and Concerns • Resources and Assistance • Be proactive • Communicate with your bank or creditor • Explore debt consolidation • Consider credit counseling
Consumer Credit Counseling Service of Buffalo, Inc. 40 Gardenville Pkwy. Suite 300 West Seneca, NY 14224 Tel. (716) 712-2062
Preventing Fraud • Do not accept a personal check from someone you don’t know well. • Keep your ATM, debit and credit cards and your checkbook in a safe place. • Check your monthly bank statements to be sure the deposits and withdrawals are correct. • If your card is lost or stolen, call your bank or credit card company immediately! • Avoid carrying large amounts of cash.
Banks with ATM’s at UB • HSBC • Key Bank • M&T Bank
Bank of America • Free Student Checking for 5 years • No monthly charges • No minimum balance • Free online banking with unlimited bill pay • Unlimited check writing • Free Bank of America Visa Check Card • Free Stuff Happens rebate card
Bank of America 1 Full Service ATM on UB’s North Campus (Nov 06) 1 Full Service ATM on UB’s South Campus (Nov 06) 1 Full Service ATM across the street from the South Campus (next to Tim Horton’s) Full-service Bank of America banking center, drive-in & ATM ten minutes by foot from UB’s North Campus Wire transfers
HSBC Bank • Free checking • No monthly or per-check fee • No minimum balance requirement • Unlimited check writing • Free online banking & bill payment • Free online bank statements • Free 24-hour telephone banking • No-fee MasterCard debit card with unlimited use
HSBC Bank • 2 ATM’s on UB’s North Campus 1 ATM on UB’s South Campus Full-service HSBC branch, drive-in & ATM ten minutes by foot from UB’s South Campus • Wire transfers
M&T Bank • Totally free checking • No monthly or per-check fee • No minimum balance requirement • Unlimited check writing • Free online banking
M&T Bank • Free Visa Debit Card • Use at any STAR, NYCE, CIRRUS or VISA ATM worldwide • Unlimited use • 2 ATM’s on UB’s North Campus 2 ATM’s on UB’s South Campus Full service M&T branch, drive-in & 2 ATM’s across from UB’s South Campus