Checking Accounts

You are at the checkout counter at the local supermarket and use your DEBIT card to pay for your groceries. Where does the money for this purchase come from?

• Your credit card company covers the cost

• It is deducted directly from your checking account

• Your credit card company provides you with a cash advance to cover the cost

• It is deducted from your credit card account

What withdraws money FROM your account?

Jocelyn gets a text alert from the bank that her account balance has dropped below $100 after a series of $20 ATM withdrawals.

She has not used her ATM in over a week and wonders what she should do. What would you recommend?

• Wait until your monthly statement arrives so you can check to see if those withdrawals are still there

• Wait a week as it is fairly common for the bank to catch mistakes like this

• Check your wallet to be sure your debit card has not been stolen. If you still have it, then you should not worry.

• Contact your bank immediately as it appears that your account may have been hacked

What is FDIC Insurance?

• Optional coverage consumers can purchase so that their bank deposits remain safe.

• Insurance bank branches can buy to protect their business against fraud and scams.

• Required if you want to do online or mobile banking.

• Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business.

While opening your checking account, the bank representative seems very interested in getting you to opt in for overdraft protection.

What might explain his motivation?

• He wants to minimize the fees you might pay to the bank

• He is required by law to sign you up for overdraft protection

• He knows that once you decide to opt into overdraft protection, you cannot opt out

• He may be receiving a sales commission for every customer who opts in to get overdraft protection

The largest source of fees for banks when it comes to checking accounts is...

• Overdraft fees

• Wire transfer fees

• Check printing fees

• Interest expense

What deposits money INTO your account?

What are types of Person-to-Person Payments?

• Handing someone money

• Cash App

• PayPal

• Swiping your debit card

• Venmo

What is it when an employer automatically deposits your paycheck into your account?

What is an overdraft fee?

• Fee for withdrawing more money than you have in the account

• Fee for writing a check

• Fee for going below your minimum balance requirement