| Banking in today's world usually means opening up a | | | | that you maintain a minimum balance in order to avoid |
| checking account, savings account, or both. Checking | | | | a monthly fee. Others charge various usage fees (see |
| accounts, also called transaction accounts, are set up | | | | #4 below). |
| to allow for the frequent receipt (deposit) and payment | | | | 3. Many checking accounts offer automatic enrollment |
| (withdrawal) of the funds in the account. | | | | in an overdraft protection program. While this service |
| Meanwhile, the savings variety are designed for people | | | | does indeed protect the consumer in the sense that it |
| to use for the purpose of building up a savings over | | | | helps avoid bounced checks and/or unpaid merchants, |
| longer periods of time. Savings accounts usually allow | | | | it comes with an important catch: there is a $20, $30, |
| interest to be earned on the deposited amount, | | | | or higher fee assessed every time the account |
| although some checking products now also offer an | | | | becomes overdrawn. These accounts actually get |
| interest option as well. | | | | very expensive for the account holder very fast. |
| If you do not have a bank account of your own, you | | | | Luckily, some banks now offer checking accounts that |
| are missing out on many of the most important | | | | will never charge you an overdraft fee - even if you |
| innovations in banking made over the past decade, | | | | overdraw the account multiple times. |
| including online banking, tens of thousands of places to | | | | 4. You can open a new account online often in a |
| use your debit card, and innovative products such as | | | | matter of 15 minutes or less. |
| checking accounts that do not charge overdraft fees. | | | | 5. Some checking accounts pay interest on the |
| Here are 5 facts about checking accounts: | | | | amount deposited. Still, restrictions usually apply, and in |
| 1. You can open one with only a small initial deposit - in | | | | most cases the interest rate paid is not as high as it is |
| most cases around $50. | | | | for a savings account at the same bank. Look into |
| 2. Most checking products offered by banks today | | | | getting both types of accounts. |
| tout themselves as being free accounts. However, for | | | | If you are considering opening a checking account, be |
| anyone who has been an account holder for more | | | | sure to get all of the facts before choosing a bank |
| than a few months, you know that "free" accounts are | | | | that suits your needs. |
| usually far from being free. For example, some require | | | | |