Checking Account Terms

Checking and savings accounts are some of the most basic staples to a person’s financial picture. While checking and savings accounts can provide us with a way to make everyday payments and purchases, they can also earn us interest. Understanding some of the basic checking and savings account terms can help us to make better financial decisions on a daily basis.

ATM Surcharges- These charges are one of the easiest ways to lose money, as they are small and often go unnoticed. An ATM surcharge is a fee that is charged by one bank to an individual who withdrawals cash from their ATM if they are not a bank member. This is common, as of course an individual’s bank may not be always convenient. It is important to notice your habits and how often you are being charged $1-2 per withdrawal. Why this may not seem like a significant amount of money, these small charges can become significant over the course of a year.

Debit Card- A debit card from a bank can often be used to not only make ATM withdrawals, but if they have a credit card logo, can be used at merchant establishments to make payments. The debit card will be linked to either your savings account or checking account and will withdrawal the amount you charged immediately, just as if you were paying cash.

Interest Bearing Checking/Savings Accounts- It is important to know that not all checking and savings accounts will pay the owner interest. When possible, consider searching for an interest bearing account so that you can take advantage of small interest amounts on your money over the course of a year.