Banking Basics

Understanding the fundamentals of banking is the first step toward building a secure financial future

Banking is a service provided by financial institutions that allows you to store, manage, and protect your money. It offers a secure alternative to keeping cash at home, while providing tools like debit cards and digital transfers to handle your daily transactions with ease.

Having a bank account creates a documented financial history, which is essential for building credit and accessing loans for significant life events.

Types of bank accounts

The two primary options are checking and savings accounts. A checking account is designed for day-to-day spending with frequent withdrawals, while a savings account is meant for long-term storage

Additionally, most banks offer interest on your deposits, meaning your money can actually grow just by being kept in the right account

How to choose the Correct Bank for you

Not all banks are the same and therefore not all banks are for everyone. Like anything else when it comes to finances it is important to do your research and compare different institutions to make the best educated choice

Somethings to keep in mind when looking for the right bank

-Monthly Fees

A charge some banks take every month just for keeping your account open, you can often avoid this by keeping a minimum balance in your account or direct deposit. There are some banks that do not charge a monthly fee

-Overdraft Fees

A fee that your bank charges you when you spend more money than you have in your account. They let you borrow the money temporarily but charge you a fee for it

-Interest Rates

This is the percentage that a bank pays you in your savings account for having your money in their bank

-ATM Access and Branch Locations

This is just for convenience but the more branches and ATM locations your bank has the easier you can access your cash money, also some banks will charge you for using a different ATM than that of your bank

-Mobile App Quality

Now a days you can do a lot if not most of your banking online and on your phone, if you are a person that likes to do everything online make sure the bank you choose has a quality and practical online banking presence

It is important that the banking institution you choose is insured by the FDIC

The Federal Deposit Insurance Corporation is a federal government agency that protects your money up to $250,000 if your bank fails.

If your bank goes out of business the FDIC will replace your money up to $250,000 per person per bank.