CHECKING & SAVINGS
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CHECKING
Checking accounts facilitate everyday transactions via debit card. While transaction frequency is unlimited, daily spending and deposit limits may apply. This account type is typically recommended as a financial foundation for young adults and teenagers.
SAVINGS
Savings accounts accrue interest and are subject to regulatory transaction limits. Regulation D restricts the number of withdrawals and transfers permitted monthly, resetting each month. These limitations apply to various transactions, including overdraft protection, account transfers, and ATM withdrawals. Savings accounts are well-suited for establishing emergency funds.
DEBIT CARDS & ONLINE BANKING
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DEBIT CARDS
A debit card provides access to funds in your checking account and is accepted at most retailers that accept Visa or Mastercard. In addition, cash withdrawals are available at ATMs and participating retailers. While ATM withdrawals at your own bank are typically free, using an out-of-network ATM may incur fees from both your bank and the ATM's owner.
ONLINE BANKING
Online banking is accessible via mobile devices, computers, tablets, or laptops, enabling electronic transaction review, alert setting, balance checking, and more.
BANKING TERMS
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OVERDRAFT (OD)
An OD occurs when insufficient funds exist to cover a transaction. The bank processes the transaction but levies a fee for the shortfall. e.g., you have $75 and spend $100, the bank approves the transaction then chares an OD fee (usually an additional $36).
NON-SUFFICIENT-FUNDS (NSF)
NSF indicates that the available balance is below the transaction amount, resulting in a declined transaction and associated fees can be charged. This generally occurs with electronic payments or checks.
HOLDS
Holds on deposited checks are standard practice to ensure sufficient cleared funds before disbursement.
PENDING
Pending charges represent transactions initiated with your debit card that the merchant has processed; these funds are temporarily unavailable for spending as they are reserved for the vendor. For instance, with a $100 balance, a $20 gas purchase will show as pending until the merchant settles the transaction.
FUNDS AVAILABILITY
Funds availability reflects your remaining spendable balance after accounting for pending transactions. Using the same example, a $20 pending purchase from your $100 balance leaves $80 in available funds.
CREDIT, LOANS, AND LINES
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CREDIT, LOANS, & LINES
Credit, loans, and lines facilitate purchases; however, as these utilize bank funds, repayment with interest is mandatory. Interest rates are determined by credit score; favorable credit scores result in lower repayment amounts. For example, with good credit, a $100 loan might require a $110 repayment, while with poor credit, the repayment could be $130. These are illustrative examples highlighting the importance of creditworthiness.
PAYMENT & TRANSFER OPTIONS
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Payment and transfer options include but not limited to cash, debit cards, money orders, cashier's checks, wire transfers, and ACH transfers. Money orders, purchased for up to $1,000, are blank and require completion by the purchaser.
Cashier's checks, also purchased, can be issued for any amount but must be made payable to a specified recipient before leaving the issuing institution.
Wire transfers, subject to fees, are electronic funds transfers available domestically and internationally; they can only be initiated by the sender, not requested by the recipient. These transfers utilize the Federal Reserve wire network and typically clear on the same day. Wire transfers are generally irreversible and final. Wire transfers often involve larger sums, limited only by the sender's available funds.
ACH transfers, governed by the National Automated Clearing House Association (NACHA), can be credit or debit transactions commonly used for bill payments, payroll, and direct deposits. While ACH transfers may take one to three business days to process, they are generally free and offer the possibility of reversal or dispute. ACH transfers typically have lower transaction limits than wire transfers.
Finally, numerous electronic funds transfer methods are available, including those provided by most banks, such as Zelle with minimal or no charge, and third-party options like Cash App and Venmo, which frequently charge fees for expedited transfers.