Brought to you by: Breez DeGuzman

Finding a financial institution that is a good fit for you and your family is extremely important knowing the right bank and bank account can have a large effect on your financial future.

The right banking relationship can have a big effect on your financial future. Using these tips on how to choose the right bank and bank account, you may find the help you need to compare banks and accounts to make the best choice for you.

Your money – It’s important to know what you’ll be using the bank account for. Is it merely for depositing your paychecks and paying bills or will you use your account to save? Do you want your money to grow or will you use it before it has a chance to earn interest? Knowing how you’ll use the bank is important before you start looking at banks and accounts.

Would you prefer paying bills online? Does the local bank offer this service if you hate writing out checks, licking envelopes, and buying postage? Most banks do offer this service but some of them charge for it. Look for the fees associated with each feature you want.

Your banking style – What is your banking style? Do you prefer to go into a local branch where you get to know your bankers or are you fine with the anonymity of banking online? Does your work schedule preclude you from making it to a brick and mortar building? If so, you may want to look into online banking services for local banks.

What you find important – Free checking accounts are offered as a way to get people into a bank and get them to start a new account. While these may be a good choice for those just starting out, they may not be the best choice for you. Look at the fees associated with each bank’s free account. Are they truly free or will you have to pay each month for the features the bank offers?

Your friends and family – Ask friends, family, and co-workers who they do their banking with and how they feel about it. You may want to also check with the Better Business Bureau in your area to see if there are any complaints against the bank you’re considering. Keep in mind you’re most likely to find negative comments rather than positive ones.

Your financial future – Will you be making a large purchase in the near future? Will having a local bank make the process of applying for a loan easier? Will having a history with a local bank help you obtain the funding you’ll need? These are some things you’ll want to think about when considering local and online banks.

Here are some other things to consider:

* Location – Do you need a bank close to your work, school, or home?

* Branches – Is it important that the bank you choose have multiple branches across your city, state, or across the country?

* Online – Do they have a website where you can learn about them, their services, and their fees without taking time out of your day?

* Comparison – Don’t forget to compare the types of accounts they offer, the fees for the services, and what type of interest rate they’re charging should you need to apply for a loan.

Read through these tips on how to choose the right bank and bank account before starting the process. The time you take when looking for a bank can have a large effect on your financial future, as well as help you avoid paying unnecessary fees.

Brought to you by: Breez DeGuzman

Many employers offer their employees the option to direct deposit their paychecks rather than handing them a paycheck at the end of the pay period. The government also offers direct deposit for Social Security, Supplemental Security Income (SSI), and VA Compensation and Pension payments. Here’s an explanation of how direct deposits work:

In its simplest terms, direct deposits are a means to move money electronically. Money received goes directly into an established account, often within seconds of when the money is released from the payment source.

Setting up direct deposits is very easy and it may be a good choice for how you receive your pay. Simply go to your employer’s Human Resources Department if your employer offers direct deposit and ask them to assist you. You can also receive tax refunds and other payments from the United States Government in this way. Some investment and insurance payments also offer direct deposits.

If you receive payments on a regular basis, direct deposit is simply the easiest and best way for you to get your payment. You don’t have to worry about the checks being lost in the mail or being stolen from your mailbox, and you’ll have immediate access to the money rather than having to wait for the check to arrive. It is a preferred form of payment for many people.

Another reason to consider getting direct deposit is that it could save taxpayers millions of dollars due to reducing the number of employees handling the checks. The government has stated the money saved through the use of the Go Direct campaign would be used to fund Social Security.

Used quite often as a means to pay workers at remote sites, direct deposit can be set up between states and even between countries. In the case of overseas workers, another reason to choose direct deposit is that the funds are then automatically exchanged into the local currency which will save having to pay a fee to exchange the funds at a bank.

You may also find that choosing direct deposit when you open a new checking account may be reason enough for your bank to offer lower-cost checking. Some banks even offer free checking for those with direct deposit.

Forget about waiting in line to make a deposit come payday, the money is already there. In some cases, your employer may actually send direct deposits a day earlier than they give out paychecks.

Financial experts relate one major flaw with direct deposits. You may have occasion to protect your wages from being garnished or to keep someone with access to your account from being able to get to your money. In this case, you may want to choose a paper check or cash for payment.

Apart from this flaw, there are no major downsides to choosing direct deposit. Of course, if you’re unsure, you can speak with your Human Resources Department at work or take the time to speak with someone at your local bank. They will be able to provide you with more information and help you make the best decision concerning direct deposits and whether they’re a good idea for you.

Finding Banks That Charge No Fees, Offers Reimbursements, Several More Options - Read Below…

Brought to you by: Breez DeGuzman

If your like most people these are typical things that happen when your in a rush. You’re running late and can’t make it to the bank before it closes. What do you do? You head to the nearest automated teller machine (ATM) to get some cash. Unfortunately, the closest one doesn’t belong to your bank and the ATM fees add up quickly.

Banks are eager to offer services that will enhance the lives of their customers. The only problem is that many of those conveniences come with a price in the form of fees. One common area you can be charged is the ATM. When you make a deposit at these machines, they could charge you. If you need to take cash out – you’ve guessed it, you’re charged again. Transfer money from checking to savings or vice versa and you may get another charge.

You may not even notice some of the fees your bank charges for the services they offer. However, if you choose to ignore them they could add up to quite a sum. Prior to 1988, it was uncommon for the owners of ATMs to charge for the use of their machines. All it took was one bank to begin charging non-account holders for using their ATMs, and before you knew it banks all across the country were following suit.

Charges averaged $1.01 for nearly ten years, but now they range between $2.00 and $6.00 – unless you use machines set up in bars or casinos; those charges could be considerably higher. Since both the bank and the ATM owner can charge non-account holders, ATM charges can be as much as $11.00 for one transaction.

ATMs are required by law to let you know the fees you may be charged. Normally the fees will be listed on the machine itself or it may be seen on one of the screens you reach through the menu. If you’re using a machine not owned by the bank you may also receive a “foreign ATM network” fee charged by your own bank, which may be different depending on which state you live in. You may also be charged another fee if you’re traveling outside of the United States.

Some banks also charge a “Denial Fee” if you attempt to use your card at an ATM and you either don’t have the funds in your account or you try to withdraw more than your daily limit allows.

To avoid having to pay ATM fees, you have several options:

* Use only ATMs offered by your bank
* Find a bank that charges no fees for “foreign ATM networks.”
* Find a bank that offers reimbursement for all ATM fees charged by other banks.
* Use your debit card as payment for a purchase and get cash back at the register.
* Withdraw larger amounts of cash so you will make fewer withdrawals.
* Budget your money so you don’t need to make withdrawals at an ATM.

ATMs are a convenience, there’s no denying that. But if you’re concerned how ATM fees add up, you do have options to avoid those fees. Check with your bank to see what fees they charge and then pay attention to fees listed on the ATM itself. Being aware of possible fees will put you on the path of being charged fewer ATM fees in the future.

Brought to you by: Breez DeGuzman

When most people think of financial institutions, they think of traditional banks. However, there are other institutions such as credit unions that people can choose. Credit unions and banks: what is the difference between them?

Credit unions are:

* Member owned and operated, generally set up for a specific community of people.

* Run by a volunteer board of directors which is voted on and elected by community of members. Each member has a vote, and ultimately a say, in who is elected to the board.

* Normally insured by the NCUA (National Credit Union Administration) up to $250,000. The NCUA fund is considered to be superior to the FDIC for insuring member’s funds.

* Members of a worldwide network that shares information and resources as a means to better credit unions as a whole.

* Known for keeping money locally so it can support the community.

 

Traditional banks are:

* For-profit organizations that are set up as businesses and are owned by stockholders.

* Run by a board of directors who are paid, but the only people that have voting rights are investors.

* Normally insured by the FDIC (Federal Deposit Insurance Corporation) up to $250,000, but that amount may be increased for specific reasons or a specific amount of time.

* Members of state or national organizations that refuse to share with each other because they’re in competition with one another.

* Not restricted where they invest member’s money
These differences may not seem that significant, but they may be important if you’re looking for a financial institution.

Pros for using a credit union include being able to offer higher interest rates on savings accounts, lower interest rates on loans, free checking accounts, and fewer penalties for overdrafts and late payments. On the other hand, credit unions have fewer branches, fewer automatic teller machines, and may be difficult to find.

Pros for using a bank include having more products to choose from. They can usually be found outside of your local area, and have more branches, and have more ATMs. On the other hand, banks don’t give the same level of customer service as a credit union, and they will charge higher fees and penalties.

Traditional banks may be more likely to experience the ups and downs associated with the economy, often because they may choose risky investments. Credit unions, on the other hand, are less likely to make risky investments because they have to answer to their owners. Current economic situations aside, credit unions are ranked higher than traditional banks in customer satisfaction and have been for over ten years.

When you’re looking for a new financial institution, you may be wondering about credit unions and banks. Looking at the above, you may have a better idea of which institution is right for you.