F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N
Choosing and
Using the Right
Bank Account
Tips for getting
more out of
your checking
and savings
Summer 2016
ALSO INSIDE
Depositing a Check
With Your Smartphone
or Tablet
The FDIC’s Greatest Hits:
Popular Topics
for Readers
Small Charges on Your
Credit or Debit Card Can
Signal a Big Crime
Preparing Your Finances
for a Flood, Fire
or Other Disaster
Money Smart: The FDIC’s
Free Financial
Education Curriculum
Choosing and
Using the Right
Bank Account
Tips for getting
more out of
your checking
and savings
Summer 2016
ALSO INSIDE
Depositing a Check
With Your Smartphone
or Tablet
The FDIC’s Greatest Hits:
Popular Topics
for Readers
Small Charges on Your
Credit or Debit Card Can
Signal a Big Crime
Preparing Your Finances
for a Flood, Fire
or Other Disaster
Money Smart: The FDIC’s
Free Financial
Education Curriculum
2Summer 2016FDIC Consumer News
When managing your money,
the right tools can make all the
difference. That’s why it helps to
start by opening a bank account
that best fits your lifestyle and your
financial goals. FDIC Consumer
News provides some simple pointers
to help you choose wisely and
streamline how you manage your
checking and savings accounts.
Before You Open an Account
Consider what you need or want
from a bank account. Think about
your day-to-day life and how you like
to handle your money. For example:
Do you receive a fixed paycheck or
pension on a regular basis or does
the amount and frequency of your
income vary? Do you prefer to pay
for purchases using cash, credit cards,
debit cards, paper checks or online
bill-paying services? Is one of your
personal financial goals to set aside
money regularly for savings? Are you
concerned about possible overdrafts
and the fees you might incur as a
result? The answers to questions like
these will help you make an informed
decision about opening a bank
account that works for you.
Comparison shop. There are many
types of bank products and services,
and the fees, interest rates and special
promotional offers will vary from
institution to institution. Some banks
will charge fees for using another
bank’s automated teller machines
(ATMs), while others won’t charge
fees and they may even reimburse
customers for fees (up to a certain
dollar amount) charged by the ATM
owner. So if you often withdraw cash
from ATMs, you may want to look
closely at how ATM fees are handled
before signing up.
Also, some bank accounts may have
minimum balance requirements or
monthly maintenance fees. Many
banks will reduce or even eliminate
these requirements if you have
your paycheck directly deposited
or you have a minimum number of
electronic transactions.
Choosing and Using the Right Bank Account
Tips for getting more out of your checking and savings
Read the agreement from the
bank that describes the account’s
terms and conditions before
making a final decision. Federal
rules require certain information to
be disclosed to consumers before
opening an account. You can review
a bank’s account agreements online
or by stopping by a branch. Looking
at a legal document may appear
intimidating or time-consuming,
but many banks offer simplified
disclosures and knowing how the
account works is worth it to ensure
that you understand all aspects of
the account, including the potential
fees and when they may be assessed.
That’s the best way to avoid surprises.
Managing an Account
Follow your transactions and
balance your accounts. Some
consumers use pen and paper,
a check register, a computer
spreadsheet, a website or an app
to ensure that they stay on top of
what is happening in their accounts.
Whichever method you choose,
track every transaction — be it a
deposit, check, ATM transaction,
debit card transaction or online bill
payment — to handle your money
effectively and avoid spending more
than you’re comfortable with. You
also can monitor your transactions
using online services provided by
your bank. In addition, many banks
offer alerts via email or text to
notify customers when their account
balance drops below a specified level
or when a check has cleared.
Understand how to avoid overdraft
fees for withdrawing more than
what is in your account. Opening
a checking account has long
been the way customers establish
a relationship with a financial
institution. However, a traditional
checking account may not be for
everyone and can quickly become
harmful to your finances if you’re
not careful about incurring fees,
including overdraft fees.
Today, many financial institutions
offer a “checkless” checking account.
These types of accounts generally
do not come with the ability to write
When managing your money,
the right tools can make all the
difference. That’s why it helps to
start by opening a bank account
that best fits your lifestyle and your
financial goals. FDIC Consumer
News provides some simple pointers
to help you choose wisely and
streamline how you manage your
checking and savings accounts.
Before You Open an Account
Consider what you need or want
from a bank account. Think about
your day-to-day life and how you like
to handle your money. For example:
Do you receive a fixed paycheck or
pension on a regular basis or does
the amount and frequency of your
income vary? Do you prefer to pay
for purchases using cash, credit cards,
debit cards, paper checks or online
bill-paying services? Is one of your
personal financial goals to set aside
money regularly for savings? Are you
concerned about possible overdrafts
and the fees you might incur as a
result? The answers to questions like
these will help you make an informed
decision about opening a bank
account that works for you.
Comparison shop. There are many
types of bank products and services,
and the fees, interest rates and special
promotional offers will vary from
institution to institution. Some banks
will charge fees for using another
bank’s automated teller machines
(ATMs), while others won’t charge
fees and they may even reimburse
customers for fees (up to a certain
dollar amount) charged by the ATM
owner. So if you often withdraw cash
from ATMs, you may want to look
closely at how ATM fees are handled
before signing up.
Also, some bank accounts may have
minimum balance requirements or
monthly maintenance fees. Many
banks will reduce or even eliminate
these requirements if you have
your paycheck directly deposited
or you have a minimum number of
electronic transactions.
Choosing and Using the Right Bank Account
Tips for getting more out of your checking and savings
Read the agreement from the
bank that describes the account’s
terms and conditions before
making a final decision. Federal
rules require certain information to
be disclosed to consumers before
opening an account. You can review
a bank’s account agreements online
or by stopping by a branch. Looking
at a legal document may appear
intimidating or time-consuming,
but many banks offer simplified
disclosures and knowing how the
account works is worth it to ensure
that you understand all aspects of
the account, including the potential
fees and when they may be assessed.
That’s the best way to avoid surprises.
Managing an Account
Follow your transactions and
balance your accounts. Some
consumers use pen and paper,
a check register, a computer
spreadsheet, a website or an app
to ensure that they stay on top of
what is happening in their accounts.
Whichever method you choose,
track every transaction — be it a
deposit, check, ATM transaction,
debit card transaction or online bill
payment — to handle your money
effectively and avoid spending more
than you’re comfortable with. You
also can monitor your transactions
using online services provided by
your bank. In addition, many banks
offer alerts via email or text to
notify customers when their account
balance drops below a specified level
or when a check has cleared.
Understand how to avoid overdraft
fees for withdrawing more than
what is in your account. Opening
a checking account has long
been the way customers establish
a relationship with a financial
institution. However, a traditional
checking account may not be for
everyone and can quickly become
harmful to your finances if you’re
not careful about incurring fees,
including overdraft fees.
Today, many financial institutions
offer a “checkless” checking account.
These types of accounts generally
do not come with the ability to write