Banking 101

Banking Basics

Banks and credit unions offer services to individuals and businesses, and you can choose the best fit for your needs. 

Banks: For-profit, more branches and ATMs, advanced technology, retirement, and investments

Credit Unions: Non-profit, member-owned, lower fees, better interest rates on loans and savings, shared branches, and may have surcharge-free ATMs

 FDIC (banks) and NCUA (credit unions) insurance insures deposits up to $250,000. 

Account Types

Checking Accounts: For daily transactions, unlimited deposits and withdrawals

Savings Accounts: Earn interest, limited withdrawals

High Yield Savings Accounts: Offer higher interest rates than regular savings accounts, helping your money grow faster

Students should consider savings or high yield savings accounts for their student loan refund and transfer their monthly expenses to checking to ensure the refund lasts all semester. 

Avoid Common Banking Fees

Monthly Maintenance fee: Choose fee-free accounts or meet the requirements to avoid fees. 

Overdraft Fees or Non-Sufficient Funds: Track your balance, use low balance alerts.  

Out of Network ATM Fees: Use in-network ATMs.

Tips for Banking

Educate Yourself: Understand the fees your financial institution charges to keep more money in your pocket. 

Utilize Online and Mobile Banking: Take advantage of mobile apps and online banking services to monitor your account, transfer funds, and pay bills conveniently.

Set Up Direct Deposit: Have your paycheck or financial aid deposited directly into your checking account to save time and access funds quickly.

Create a Budget: Use banking tools or apps to track your spending, establish a budget. and avoid overdraft fees.