bank account | Money Management Guide

What’s A Second Chance Checking Account?

On April 27, 2011, In bank account

It is possible that you have been through some rough financial times, and traditional banks or lending institutions may be leery of giving you a standard checking account. Do not worry. A second chance account might be the thing for you, although it is not available everywhere. To find a 2nd chance bank, a quick look online should do the trick.

To understand more about this, you have to know why you have gotten into this situation. If a bank does not want you as a customer, you may have done things like overdraw your account multiple times, had missed or late payments, or frequently had insufficient funds for bank fees. If the bank decided this was more trouble than it was worth, your account may have been determined. Or perhaps you were frustrated and left. Either way, your name is in a database called Chexsystems, that all banks share.

This system can compile a check before a fresh account at a bank is opened. If your name shows up, a typical account will not be offered to you. Instead, you might get a second chance checking account.

This is so that you can keep on using banking services, and hopefully your financial habits will get better. You will have to deal with several restrictions that may include things like the following:

higher interest rates
no credit cards, only debit
no capacity for overdrafts
trial period before acceptance

This might seem unfair to some people, but once you demonstrate the ability to use it, such restrictions might be removed, and you might be able to get back to a regular checking account.

Once a name is put into Chexsystems it is there for five years. So if you screw up your second chance checking account, it may very well end up being your last one, for a lengthy period of time.

Banks With Free Checking Accounts

On April 7, 2011, In bank account

If your bank tells you that your checking account is free, there should be no charges for such basic services as withdrawing money from an ATM, making payments online or having your balance fall below a certain amount. If you use services or features other than these, there may be charges and fees involved, as anything else would be considered to be an extra, or additional service. Having an overdraft option or being issued a second check book would both be considered to be additional services that incur extra fees.

In most cases, if you have a free checking account with your bank, you will not be able to earn interest, although you may be allowed to link that account to an interest earning savings account.

In some cases, banks with free checking and savings only offer this feature as a limited time promotion and if this is the case, it is recommended that you read and understand the small print. Once the promotional period is over, you could actually end up paying more in fees than you might otherwise have done. Banks are notorious for reeling customers in with all sorts of promotions, discounts and freebies and most of the time these do not last, or come with restrictive conditions. If your bank really does offer free banking, it probably comes with conditions and requirements and it is essential to understand these.

Some banks do offer a free checking account promotion if you use or subscribe to another product offered by the bank. An example might be if you have your mortgage loan through your bank, you may be eligible for free checking. Your bank may also have an offer whereby if your savings account has a specified miniumn balance, you may be eligible for free checking. This has the effect of keeping your business, as well as giving you the flexibility you want.

Banks with free checking are usually the larger ones that can afford to offer that service, although an increasing number of smaller banks are beginning to come up with this promotion in order to attract and keep customers. If you are shopping around for a bank that offers free checking, make sure you understand the rules and regulations and any ‘hidden fees’ before you sign up.

Having A Passbook Savings Account

On February 24, 2011, In bank account

It is becoming more and more common every day for technology to take over our lives. When it comes to banking, it is the same story. Passbook savings accounts are going to seem like older style of banking. However, if you think about all the benefits that you will receive from doing this kind of business, you may actually consider it.

You are going to have to be more involved when you choose to do this type of banking. For instance, you will be required to keep a check register so that you can write down all of your withdrawals as well as deposits which you have made. If you keep track of everything right away, this should not inconvenience you at all.

A passbook savings account is a wonderful way to make saving money more convenient. It also helps a lot in your debt management plan. The reason that it is so easy is because you will not be able to access your money right away. Of course, this is not going to be a good idea for a checking account. However, if you would like to begin saving right away, go to your bank and open one of these accounts today. In most cases, you are going to be required to go inside the bank and withdraw the money personally. In some cases, you may actually have to wait a couple of days before the money will be available to you. Some people feel as if this is not a good idea because the rules are too strict. However, it is a great way to save because it is easier to leave your money there rather than deal with the hassle.

Because of the fact that so many people are struggling on a daily basis with debt, it is always a good idea to save as much as you can. When you budget your money and keep track of your spending, you are going to feel better about your finances. This is not something that they teach our children in school. Therefore, it is a good idea to help them with this.

This may not seem like the latest technology when it comes to banking. However, when you consider a passbook savings account, you will be taking care of your financial situation on your own.

Can You Open a New Checking Account without a Deposit?

On December 20, 2010, In bank account

With most banks you will find that you need to have some sort of deposit if you want to open a checking account. For some people they may not have the money right away to put in as a deposit or they simply don’t want to put money into the account yet. If you are one of those people, then you need to look into free checking accounts with no deposit required.

A new checking account that doesn’t require a deposit is not an easy thing to find. Most banks want to know that you have money to put into the account before they will give it to you. There are some banks though, that may only require a small amount as a deposit. Some banks require $50 or more but there are some other bigger banks that may only require $10 or $25 to open a checking account. This may be an option for you if you don’t have that much money to put down as a deposit right now.

One of the most popular banks that offer this checking account promotion is Citibank. You can open the account with no money but there are requirements for the account if you want to keep it a free checking. With Citibank you have to perform at least 5 transactions a month with the checking account for it to remain free or else you get charged a monthly fee. This is a very common practice with these types of accounts and you most likely will not find a bank that won’t require a certain amount of transactions for this type of checking account.

Although you may be able to find a few banks that are willing to give you a free checking account with no deposit, you need to make sure you pay attention to the requirements of the account or else you may be hit with unexpected fees. Make sure to read to all the fine print so that you don’t end up losing money instead of saving money.

Tagged with: checking account promotion • checking account with no deposit • free checking account • free checking accounts with no deposit • opening a new checking account

Kids Savings Accounts And Teaching Them Personal Finance

On August 31, 2010, In bank account

Money should not be the main value to guide our actions. However, teaching personal finance to your children is very important. Wrong financial decisions can bring many problems, and learning to avoid those is fundamental.

The first thing parents should teach their children is that money is not created from anything. It takes work to make enough money to buy video games, toys, food and so on. We ay wake up in the morning with a headache or simply feeling like sleeping longer.

Other than the true value of work, saving money is also important. Piggy banks are a great way to get started because of its immediate visual reward: the coins piling up always have a hipnotic effect on children. Sitting down with your kids every now and then and couting the money together is fun and also an opportunity to talk about the importance of setting goals and saving money.

Opening a kids savings account is another way to teach responsabilities to children. You can walk them through the entire process of helping them fill up a deposit slip, stand on line waiting for their turn, and do the actual deposit on the bank.

Keeping track of kids savings accounts can be done by having a folder where they store all deposit slips and bank statements. That will also prove useful in the future, as the amount of papers they have will increase as they grow up. Also, let your kids open the bank statement by themselves. Once they do it, read it together to teach them the meaning each numbers.

One final tip is to search for an internet savings account for kids. It will teach them how to use safe websites on the internet, how to compare interest rates, and also how to manage a bank account through an internet connection.

These are some basics of teaching personal finance to children. Those are valuable lessons any person needs in order to build their financial independence.

Tagged with: kids savings accounts • savings accounts for kids

The Purpose of a Kid’s Savings Account

On August 6, 2010, In bank account

To an adult, the concept of a savings account is not exactly something all that complicated. However, to a kid, the concept may seem as understandable as a foreign language. In a way, a savings account is foreign to children because it is not something that they will come in contact with on a daily basis. That means an adult needs to introduce the concept and the process of saving and spending money to them. This is where a kids savings account becomes very helpful.

Some may wonder if the basics of a kid’s saving account are difficult to explain. After all, the subject is complicated, right? Actually, it is only as complicated as it has to be. When dealing with children, you probably would want to strip the subject of a savings account to the most basic components. Namely, you will want to discuss saving money and perhaps interest and how interest compounds over time. In short, need to explain how a savings account will benefit the child. You can easily start by giving them piggy banks and showing them how to save some of the money, perhaps from a birthday or an allowance that you give them.

Saving your money is about increasing value over time. Spending your money with no attention to saving anything pretty much means you will end up with nothing. Explaining the process to your kids on these terms will certainly prove to be helpful in terms of getting the main points across to them. You can also show them that their saved money can be used one day towards something of vale. Perhaps they are intersted in an item that costs 25$ and they can save 5$ each month, at the end the time the reward as well as the lesson learned will be tremendously valuable.

Tagged with: kids savings • kids savings accounts • piggy banks

Protecting Your Checking Account

On July 12, 2010, In bank account

Once you have decided to open a checking account from one of the checking account promotions offered, it’s important for you to know how to handle your check book. The hard-earned money that you place in your account can easily disappear via scams or illegal activity without your knowledge. Even banks can commit errors that could affect your account if you don’t balance and reconcile your check book. It’s a simple step to ensure that everything is in order.

Each leaf of a check book is attached to a little stub called the counter foil. This should be filled up with the necessary information every time you issue a check. There, you will record the date, the name of the person or place it is addressed to, the amount, and what it’s for. You will use these stubs to verify every transaction you have done at the end of each month when you receive your bank statement.

Bank statements will also reflect your ATM transactions which should be accounted for as well because theft can be committed through it. The magnetic strip of a card contains information that can be copied using a cloning device which can then be transferred to a cloned version of your card. Once that is done, offenders will have full access to your account and withdraw funds and perform transactions. What you should do is to obtain and keep every slip from your withdrawals and point-of-sale purchases.

On your bank statement, separate your electronic and check book transactions using a hi-lighter pen, if you must, to make it easier. Afterwards, confirm all transactions with your counterfoils and slips one by one, then compute for the total of each and verify if the amount on the bank statement is equal to the total of your counterfoils and slips. This is how to reconcile and balance your checking account.

Checking account promotions (a savings account bonus) offer security and convenience, but you must do your part to ensure your finances are in order as well. Jot down all necessary information on the counter foil for every check you issue and hold on to every slip generated from your electronic transactions. Be reminded that some banks do not address issues concerning your account after a certain period of time has passed. Do your due diligence to guarantee that your account is free from any mistake or any fraudulent activity.

Tagged with: checking account • checking account promotions • checking accounts • savings account bonus

Using Second Chance Bank Accounts

On July 5, 2010, In bank account

Second chance bank accounts can make money-handling much easier. Through them, you do not have to pay for things with cash or money orders, but instead you can use debit cards or checks; financial instruments associated with traditional banks. This goes for both online and offline purchases. However, do not sign up for anything just yet. Like anything else, you should be fully informed before committing yourself to any banking institution.

Fees are one area of concern. In order to protect their financial interests, most second chance institutions will charge slightly higher fees than traditional banks. You may also incur additional fees every time you conduct a transaction. In any case, remember that these fees are nominal. Transaction fees tend to be just a few cents while monthly fees are usually less than $10.

As far as documentation, very little is needed with this type of banking. The only thing they really care about is whether or not you are a US citizen. This is proven through your Social Security number and driver’s license. Nothing else is needed, since neither ChexSystems nor your income are used as a basis for approval.

In fact, the only real difficulty associated with second chance banking is finding institutions that offer such a service. This is because there are many fraudsters in the industry. Some are identity thieves that post phony websites in hopes of gaining your information. Others conduct unethical but “legitimate” second chance schemes, where you end up getting an overpriced debit card.

To prevent getting scammed, it is best to check out any leads that you find. Investigate them with the Better Business Bureau. If they have a consumer complaint, or they are too new to generate any type of rating, it is best to look for something else. With patience and diligence, you will eventually find the best bank for your situation.

Tagged with: 2nd chance bank accounts • banks that offer second chances • second chance bank accounts • second chance banking

How To: Choose A Current Account

On April 17, 2009, In bank account

In the modern world it would be impossible for many people to function without their bank accounts, but with such a huge range of current accounts available choosing a bank account can be a bewildering challenge for the uninitiated. For this reason its perhaps unsurprising that many people end up with an account that is totally unsuited to their needs. But for such an important and ubiquitous product wouldn’t it make sense if we all made a little effort to teach ourselves about what’s available to ensure we end up making the right choice?

What is a current account?

A current account should be looked upon as a place to keep the money that you will use in you day-to-day business, the place where your wages will be paid into and the account you’ll use it to make everyday purchases throughout the month. Any current account from a UK bank will usually include a cheque book and a cash card/debit card, giving you easy access to your cash at all times. A current account will pay interest on your money and will usually include some sort of overdraft facility.

Bank Account Interest Rates

Some of the largest banks in the UK also happen to be the ones that pay you the lowest interest rate on your savings so it pays to shop around. The best rate in the UK at the moment is from Alliance and Leicester which offers savers an impressive 8.5% AER (fixed for 1 year) on balances up to £2500. Be aware that many banks are currently paying 0.1% interest, a rate at which you might as well be keeping your money under your bed.

Bank Overdraft Charges

Hopefully you won’t be needing to pay any of these nasty charges but if the unavoidable happens it always pays to be well prepared. Overdraft charges with British Banks at the moment an range from 0% up to around 20% so it definitely makes sense to check in advance how well your bank measures up. The best deal at the moment is the Alliance and Leicester once again which charges 0% on arranged overdraft. This account is the one to choose if you’re in the UK, at least until next year when the 8.5% interest on credit balances deal runs out.

Bank Fees

Monthly fees have become rarity for UK current account holders although it looks as if they may be starting a reappear. Last year Citibank and First Direct began charging customers a £10 a month fee for the use of certain current accounts, justifying the charge by including new services that most customers will never use. Check that your new account doesn’t have any hidden charges before you sign up.

Other Things To Take Into Consideration

Does an account allow you to make “bill payments”, can you use it to set up standing orders and direct debits? You might also want to consider the standard of service offered by a specific bank. This is especially important if you’re setting up an account through a local branch where you will often be dealing with human beings rather than a computer screen in the course of your business.

Tagged with: Bank Fees • bill payments • current account • Interest Rates • Monthly fees

Money Management Guide

Helping you look after your cash

What’s A Second Chance Checking Account?

Banks With Free Checking Accounts

Having A Passbook Savings Account

Can You Open a New Checking Account without a Deposit?

Kids Savings Accounts And Teaching Them Personal Finance

The Purpose of a Kid’s Savings Account

Protecting Your Checking Account

Using Second Chance Bank Accounts

How To: Choose A Current Account

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