“Bank Accounts: What You Should Know”

1. “Bank Accounts:What You Should Know”

2. Overview • Banking Terminology • How to Choose the Right Bank • Types of Bank Accounts • Features of Checking Accounts • How to Write a Check • Credit Cards, Debit Cards & ATM Cards • How to Maintain a Good Credit History & Prevent Fraud

3. Banking Terminology • Deposit: to put money in the bank • Bank deposit (noun) (also called “credit”) • Withdraw: to take money out of the bank • Withdrawal (noun) (also called “debit”) • Overdraw: to take more money out of your account than is available • PIN: Personal Identification Number

4. 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 • Note: Interest rates change over time and vary greatly. There are many factors that influence them.

5. Questions to Ask Yourself • What will you need to do when you use your bank account? • Save money and earn interest? • Withdraw money frequently? • Write checks? • Wire money home and receive wire transfers?

6. Questions to Ask Yourself (cont.) • How do you want to carry out those banking transactions? • At the bank? • Online? • Using an Automated Teller Machine (ATM)?

7. How to Choose the Right Bank • Location • Is it close to home or campus? • Can I easily walk there? • Will I have easy access to an ATM? • Costs • How much are the fees? (ATM, wire transfers, etc.)

8. 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 • May have limits on the number of monthly transactions

9. Types of Banking Accounts • Money Market accounts • Permit limited check writing • Pay variable interest • Limits on the number of monthly transactions • Certificates of Deposit (CD’s) • Exist for specified time periods (30 days - 10 years) • Pay fixed or variable interest • Generally, have higher interest rates than savings accounts • Charge a penalty if the money is withdrawn early

10. Features of Checking Accounts • Minimum deposit • Minimum amount of money required to open account • Service fees • Monthly fees • Per check fee • Debit card (ATM) fee • Minimum balance • Required amount of money in the account (not always required) • You must pay a fee if the amount falls below the minimum balance (called an “overdraft fee”)

11. 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 “bouncing a check” (writing it for more money than is in your account) • Fee for overdrawing when using a debit card • Wire transfer fee • Fee for sending money electronically to another bank or receiving money from another bank (incoming or outgoing) • Foreign ATM fee • Fee for using another bank’s ATM

12. More Features of Checking Accounts • Overdraft protection • Protects you from overdrawing your account • Money is automatically taken from your 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 (temporarily changed to $250,000 until December 31, 2013)

13. What You Need toOpen a Bank Account • Passport or other official government I.D. • Copies of immigration documents • UB Card (may be optional) • Address in U.S. (not a University office) • Address in your home country • U.S. Phone Number (required by Bank of America) • Minimum required deposit • Proof of enrollment (may be optional)

14. How to Use your Checkbook

15. Write in numbers: How much is the check for? How to Write a Check Joe Student 123 Main Street Amherst, NY 14226 MM/DD/YYYY University at Buffalo 100.00 Onehundred and 00/100------------------------------ Joe Student Person#: 3555-5555 Write in letters: Who is the check for? Write in letters: How much is the check for? Write today’s date here in this format: Month/Day/Year Write your UB Person number here Sign YOUR name here

16. How to Keep Your Check Register

17. How to Reconcile Your Bank Statement

18. ATM Cards • Issued by the bank when you open a checking or savings account • ATM = Automated Teller Machine • 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

19. Important ATMCard Tips • Keep your card in a secure place • Do not write your PIN on your ATM card or keep it with your card. • Do not choose an easy PIN to guess (Ex. “1234” or your birthdate) • Do not share your PIN with anyone else! • Keep your ATM receipts and write them in your checkbook register.

20. Important ATMCard Tips • Put your cash in an envelope before depositing it in an ATM, if necessary. (Note: Bank of America and HSBC do not use envelopes.) • Review your monthly bank statement for accuracy.

21. Debit Cards • An ATM card is sometimes also a debit card • Used to make purchases • Must use a PIN to access your money • Amount of purchase is withdrawn directly from your bank account • Some banks charge a fee each time you use a debit card

22. Credit Cards • 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. • It might be possible to withdraw money, but you will be charged a fee.

23. Types of Credit Cards • Private Label • Can only be used in one place • Ex: department stores, gasoline companies • General Label • Can be used in many places • Ex: Bank Card, Major Credit Card (VISA, American Express, MasterCard, Discover)

24. Choosing a Credit Card • Annual Fee? • Yearly fee charged to use a credit card • Finance Charge (Interest Rate)? • Interest rates vary greatly (8%-32%, sometimes even higher) • Annual Percentage Rate? • Yearly cost of borrowing

25. Choosing a Credit Card • Computation Method? • How finance charges are calculated • Grace Period? • Allows you avoid finance charges if you pay your balance in full before a certain date • Credit Limit? • Amount of money you are allowed to borrow

26. Choosing a Credit Card (cont.) • Late Fee? • Fee you will be charged if you do not pay the amount due by a certain date • Card Incentives? • Benefits to using a particular credit card • Airline miles, cash back, reward points, etc.

27. Maintaining Good Credit • Credit Agencies • Equifax • Experian • TransUnion • The Credit Process • Credit Report • Annualcreditreport.com • Credit Rating • Credit Score • Establishing a Credit History

28. Things to Do to Establish and Maintain Good Credit • What can everyone do to establish and maintain good credit? • 1. Know your budgetary limits • 2. Prioritize your needs and wants • 3. Pay all bills on time • 4. Avoid late fees • 5. Monitor your credit card balances • 6. Have both a checking and savings account at a local bank • 7. Use your credit card through secure channels • 8. Request a copy of your credit report each year

29. Managing Credit Issues and Concerns • Resources and Assistance • Be proactive • Communicate with your bank or creditor • Explore debt consolidation • Consider credit counseling

30. Consumer Credit Counseling Service of Buffalo, Inc. 40 Gardenville Pkwy. Suite 300 West Seneca, NY 14224 Tel. (716) 712-2062

31. Preventing Fraud • Keep your ATM, debit and credit cards and your checkbook in a safe place. • If your card is lost or stolen, call your bank or credit card company immediately! • Never respond to an e-mail request for your bank account information! • Visit www.ftc.gov for advice about what to do.

32. Preventing Fraud (cont.) • Check your monthly bank statements to be sure they are correct. • Do not accept a personal check from someone you don’t know well. • Beware of scams that ask you to deposit a check!

33. Important Reminders • If you move or change your phone number, be sure to give your bank your new address and phone number! • Be sure to keep your PIN number in a place where no one can find it!

34. Banks with ATM’s at UB • Bank of America • HSBC

35. Bank of America Bank When You Want, Where You Want Checking Accounts That Fit Your Schedule • Electronic Banking • Debit Card – Keep the change • Deposit Image ATMs • Text Banking • Online Banking • Optional Bill Pay • Online Paperless Statements

36. Bank of America 1 Full Service ATM on UB’s North Campus 1 Full Service ATM on UB’s South Campus 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

37. HSBC Bank • Student / Choice Checking • No monthly or per-check fee for prospective students for 4 years • No minimum balance requirement for prospective students for 4 years • Unlimited check writing • Free online banking & bill payment • Free online bank statements • Free 24-hour telephone banking • Bank at Work • Premium banking packages for students who work at UB and have direct deposit • No-fee MasterCard debit card with unlimited use

38. HSBC Bank • 1 ATM on UB’s North Campus 1 ATM on UB’s South Campus Full-service HSBC branch, drive-through & ATM ten minutes by foot from UB’s South Campus

39. M&T Bank • M&T @ College Checking • No monthly service charge or minimum balance • Unlimited check writing • Free M&T Web Banking and Web Bill Pay • Free M&T Visa Check Card (debit card) • 4 Free non-M&T ATM transactions per month • 4 Surcharge rebates per month • Free first order of 50 checks • Free incoming international and domestic wire transfers • Free PIN/POS (Point of Sale) transactions • Overdraft protection available with free Savings account

40. M&T Bank • No ATM’s on campus currently, but that may change • Full service M&T branch, drive-in & 2 ATM’s across from UB’s South Campus

41. Interested in learning more? “Living on a Shoestring: How to Live Cheaply as a Student” Thursday, September 16 3:30-4:30 Capen Hall 31, North Campus ISSS semester workshops: www.buffalo.edu/intlservices/workdesc.html

42. THANK YOU VERY MUCH!