Transcript Columbia Business School

“Bank Accounts: What
You Should Know”
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, percheck, 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Charge a penalty if the money is withdrawn early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
How to Use your
Checkbook
How to Write a Check
How to Keep Your
Check Register
How to Reconcile Your
Bank Statement
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.
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?







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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




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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
THANK YOU VERY
MUCH!