If you're on the ChexSystems list, it's important to know how savings and checking accounts are different and what they offer. You're probably looking for a better bank account, and this guide can be a big help. You have a lot of choices when it comes to finding a good place to put your money. There are checking, savings, money market, and certificate of deposit accounts (CDs). Each one has different rules and benefits, fits different needs, and is good for different people. There are a few things to think about when you decide what's best for you.
Some accounts can only be opened with a certain amount of money in them. If your account goes below that number, you'll be charged extra or won't get interest.
- When it comes to interest, it's important to look at how much you'll get and how often. At http://www.bankrate.com, you can compare the rates at banks in your area to those at banks across the country.
Find out how much you can take out at a time. You can take your money out whenever you want, but is there a fee?
- Look for insurance for your money. The Federal Deposit Insurance Corporation will protect your money, according to a sign in the bank (FDIC). Credit union accounts are also safe, but the National Credit Union Administration is in charge of that (NCUA).
How easy is it to put and take money out? Can you easily get to a bank or ATM, or would you have to do most of your banking online or by phone? Find out if you can also send money electronically, like with a direct deposit.
If you want an account that lets you write checks, you should also think about how many checks you'll get, how many checks you can write in a month, and if there are any fees if you go over that limit. Find out if there is a minimum or maximum check amount and if there is a monthly fee for the account. Some banks will also charge you a fee if you write more than a certain number of checks every month or for each check you write.
- Look for rules that say checks can be put on hold. If you put more than a certain amount of money into your account, you might have to wait before you can use it. You might also have to wait longer if you deposit a check from another state.
What about overdrawn accounts? You should know what will happen if you write a check for more money than you have in your account. So that you are safe, you could link your checking account to a savings account. If you don't, checks written to you or from you that don't clear could cost you a lot in fees. Since a bounced check can hurt your credit, it's a good idea to be covered.
Keep in mind that the new Check Clearing for the 21st Century Act (Check 21) lets banks clear checks electronically instead of exchanging your paper checks. This means that you don't have to send back your original checks when you get your monthly statement or if there's a problem with one. Instead, substitute checks are made to stand in for the originals in a legal sense. But these aren't the same as regular images of checks, which can't be used as replacement checks.
Asking for your cancelled checks every month with your statement has always been a good idea. Now, instead of cash, you'll get checks every month. The old way for banks to handle checks takes about a day or two. Now, on the other hand, processing done electronically happens almost instantly. This means there is no time between when you write the check and when the money is taken out of your account. This makes it more likely that the check will bounce. You can deal with the change in float time if you have your employer use direct deposit to put your paycheck straight into your account. Also, because it takes less time for payments to clear, it's harder to stop payment.
