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U.S. Federal Citizen Information Center: Savings/Checking Accounts

With the Internet, you can now compare local bank services and credit offers with those from financial institutions around the nation. www.bankrate.com provides up-to-date interest rate reports on mortgages, auto loans, credit cards, home equity loans, savings and other banking products. www.gomez.com rates banks, credit cards, investment brokers, insurance, mortgages, real estate brokers in the U.S. and Canada. When choosing a savings or checking account, you will want to:

• consider the rate of interest the account will earn (if any);

• look for a checking account that has a low (or no) minimum balance requirement that you can, and do, meet.

To compare checking accounts, request a list of fees that are charged on each. Some institutions will drop or lower checking fees if you have paychecks directly deposited by your employer. Direct deposit offers the additional advantages of convenience, security, and immediate access to your money.

Bank failures are rare these days, but they still happen. If your financial institution fails, you may not be covered if you have more than $100,000 in any one bank. Look for a sign at your bank that says your money is protected by the FDIC (The Federal Deposit Insurance Corporation). The FDIC provides information in print and on www.fdic.gov that will help you determine whether your money is protected. Credit union accounts have similar protection from the NCUA (The National Credit Union Association, www.ncua.gov).

Under Federal law you could lose all the money in your bank account and the unused portion of your line of credit established for overdrafts if you fail to report an unauthorized transfer or withdrawal within 60 days after your bank statement is mailed to you.

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U.S. Federal Citizen Information Center: ATM/Debit Cards

With a debit card and personal identification number (PIN), you can use an Automated Teller Machine (ATM), to withdraw cash, make deposits, or transfer funds between accounts. Some ATMs charge a fee if you are not a member of the ATM network or are making a transaction at a remote location.

Retail purchases can also be made with a debit card. You enter your PIN or sign for the purchase. Some banks that issue debit cards are charging customers a fee for debit card purchases made with a PIN. Although a debit card looks like a credit card, the money for the purchase is transferred immediately from your bank account to the store’s account. The purchase will be shown on your bank account statement.

Immediately call the card issuer when you suspect a debit card may be lost or stolen. Many companies have toll-free numbers and a 24-hour service to deal with such emergencies. While federal law limits your liability for a lost or stolen credit card to $50, your liability for unauthorized use of your ATM or debit card can be much greater – depending on how quickly you report the loss.

Report a debit card missing before it is used and you are not responsible for any unauthorized withdrawals.
Your liability is limited to $50 if you report the loss within two business days after you realize your debit card is missing, and to $500 if you report the loss between 2 and 60 days.
If you do not report an unauthorized use of a debit or ATM card within 60 days after your bank statement with the unauthorized use is mailed to you, you could lose all the money in your bank account as well as the unused portion of your line of credit established for overdrafts.
Check the policies of your card issuer. Some offer more generous limits on a voluntary basis.

When you use a debit card, federal law also does not give you the right to stop payment. You must resolve the problem with the seller.

Beware: Stored-Value Cards

Stored-value cards – sometimes referred to as pre-paid or gift cards—are a lot like the dollar bills you carry in your wallet. Money is stored electronically on the card itself. If a card is lost or stolen, the money is gone. Stored-value cards do not have the same federal protections that credit and debit cards have.