Everyone loves money, but not everyone is so good at saving it. Some of you may not even believe in banks. Regardless, this mytake is to offer you advice about keeping a savings and or checking account. Here are some simple rules to follow:
1. Always choose a bank or credit union that is FDIC or NCUA insured.
The Federal Deposit Insurance Corporation and the National Credit Union Association insure all deposits up to $250,000. This was created by the Roosevelt administration as part of the New Deal in the 1930s as a result of The Great Depression when so many people lost their savings due to uninsured banks. Always choose a bank or credit union that is FDIC or NCUA insured.
2. Watch out for hidden fees.
Some banks will charge hidden fees for having an account through them. But there are ways to avoid a checking account or savings account fee. You can set up direct deposit through your employer. At most banks they will waive the montly fee for the account. The same can apply to having a certain amount every month like $500. Or, most banks will not charge a fee after ypu used the debit card issued for your checking account more than 10 times a month. Also,watch out for overdrafts, but more on that in a minute. Be aware also that some ATMs will also charge you a fee just for checking your balance or withdrawing funds. Unless it's your home bank then most transactions are free at their ATMs.
3. Opt out of overdrafts.
NEVER SIGN UP FOR OVERDRAFT PROTECTION! Overdraft protection is when you agree to let the bank or credit union pay any bounced checks or overdrawn debits. But there is a hefty fee for this, usually it's around $35 but can be as much as $100. If you overdraft too much you could find yourself on Telecheck or Chexsystems which are databases of people checks are not to be accepted from. Banks can also refuse you service due to this. Not counting you could also possibly be charged with worthless checks which could cost you more money or even jail time.
4. If you sign up for a prepaid debit card compare them first.
Some prepaid debit cards offer good alternatives to checking accounts. One being no possible way to overdraft, and another is they are also FDIC insured. Plus they can also be used wherever Visa,Master Card,or American Express are used. But,some also charge hidden fees. Some charge just for a signature or pin purchase. Some.charge you out the ass for checking your balance at an ATM. Some also charge you a fee on tpp another fee just to withdraw cash. If you get a prepaid debit card I recommend the Bluebird American Express. There is no monthly fee, reloads are free at most Wal-Mart stores. Plus you can get 1 to 2% cash back sometimes.
Here are a couple of banks to avoid:
Woodforest National Bank. They charge hidden fees out the ass, plus they are known as a low profile bank which caters mainly to people whom have abused bank accounts and have had shady pasts with banks.
Bank of America is one of the worst of the big banks. I used to work in one of their call centers. They charge high fees and their customer service sucks ass. This is coming from a guy who worked in their call center. I personally recommend using a credit union because most of the time they will accrue interest on both checking and savings accounts so you will also make a little money by keeping it there. Plus in a credit union you own a share of it just by being a member.
If you decide to go with one of the big banks I recommend Wells Fargo. I currently have an account with them and I am very happy with them. The only downside is if you deposit a check that isn't one of their own clients you have to wait a business day before the funds will hit your bank account. Really that's no major inconvenience because most banks do that.
Also be aware even though your direct deposit says funds will be available at midnight, that will midnight local bank headquarters time. Since my bank Wells Fargo is headquartered in San Francisco,California but the east coast headquarters is in Charlotte, NC about 70 from where I live all deposits are made on California time which would be 3 AM eastern time. So be aware of that
So that's all I have for you about banking. Make sure to keep you and.your money safe!