14 The Hampton Roads Messenger Everyday Banking
FROM PAGE 4
on its Web site to what you are told in person; it’s possible that a special offer may be available through certain branches only and not online, or vice versa.
By comparison shopping based on
the fees and how you expect to use your account, you should be able to predict what each account will cost you.
8. Am I giving too much
consideration to “rewards” or other special offers? “One-time deals, whether they involve cash or merchandise, can induce consumers to select an account that isn’t necessarily the most cost-effective,” said Reynolds. “Likewise, with specials that won’t last the life of the account, such as an interest rate bonus that will only last a few months, compare the regular terms and conditions of the account to what the competition is offering to decide if the account is right for you for the years ahead.”
Also carefully evaluate the
requirements to qualify for any special offer and determine if that is consistent with how you already manage your finances. For example, if you expect to use a debit card infrequently, don’t sign up for an account that offers a special interest rate that is conditioned on making a dozen or more debit card transactions per month.
Frasure also warned to be
especially cautious when the reward is based on making purchases. “Don’t let
Volume 7 Number 3
down your guard against unnecessary spending in order to earn rewards,” she said. “If you are spending more than you would at another bank, those ‘free’ rewards may end up costing more than you think.”
9. Will all my deposits be federally
insured? This is important to know before opening an account or making a sizable deposit in the future. The FDIC guarantees deposits up to at least $250,000 per depositor per institution, including principal and accrued interest, if the bank fails. If you have less than $250,000 in a bank account, you can rest easy knowing that no depositor has lost a penny of insured funds since the FDIC’s creation in 1933.
10. If I’m thinking about using a
prepaid card to pay for purchases, is it the case that they may have fewer consumer protections than a traditional bank account? Generally, bank checking accounts, including any cards linked to an account, are covered by comprehensive consumer protection laws that, for example, limit how long a bank may hold a deposit before making funds available or offer protections in the event of fraudulent activity.
However, some people have turned
to prepaid cards that are reloadable and can be used for general purposes (such as at merchants and ATMs) as alternatives to checking accounts without realizing there may be hidden fees and fewer consumer protections.
“For these reasons and others,
often including the inability to easily set aside money in a separate savings account, most prepaid cards cannot
offer the features of a well-selected, well-managed bank checking account,” said Reynolds. To learn more about prepaid cards, see Debit, Credit and Prepaid Cards: There Are Differences.
Using Your New Account
Once your account is open, remember the following. • Overdrafts pose the largest risk
for costly fees, but you can avoid them. The easiest way to avoid these fees is to keep an up-to-date record of how much money is in your account and check your balance before making a purchase or writing a check. Also, ensure that you have sufficient funds in the account to cover any bills automatically paid from the account.
“Mistakes — overdrafts — can
happen, so understand how you can deal with the consequences in the most cost-effective way possible,” said Frasure. For overdrafts caused by debit card transactions, she explained, if you do not “opt in” (agree) to a fee-based overdraft program from your bank, “debit card transactions that exceed the available funds in the account would generally be declined, but at least you would not pay a costly fee for spending money not in your account.”
An effective way to handle
overdrafts may include pre-arranging for an automatic transfer from your savings account to your checking account when the balance falls to zero.
Diabetes Month FROM PAGE 3
Month, NEHEP will expand its year-round efforts in educating people with diabetes about the importance of early detection, with special emphasis on populations at higher risk of vision loss including African Americans, Hispanics/Latinos, American Indians, and Alaska Natives with diabetes.
In addition to using traditional and
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social media outlets to reach people with diabetes, NEHEP is also encouraging health professionals to refer patients with diabetes for annual dilated eye exams. NEHEP is providing community-based
November 2012 • You can control whether financial
companies share your information for marketing purposes with certain other companies. The privacy of your personal financial records with a financial institution is protected by law. If your financial institution intends to share your information with anyone outside its corporate family, it generally must give you the chance to “opt out” or say “no” to information sharing under certain circumstances. Consult the privacy notice of the institution for details.
• You may choose to switch
from paper statements to electronic statements. If you do so, be sure to immediately review your electronic statement because timely reporting of errors is essential to limiting your liability in the event of a problem. Also, if you ever need to confirm that you paid a bill, consider saving a copy of each monthly statement in a secure, perhaps electronic location, especially if the institution charges a fee for retrieving previous statements. For more information, see Going Paperless with Electronic Statements.
• It’s important to monitor communications from your bank about changes it plans to make to your account, including new fees. “These notices can prompt you to reevaluate whether you can get a better deal by shopping around,” Reynolds said.
organizations and community health workers with culturally appropriate resources and teaching tools to educate people with diabetes about the lack of early warning signs associated with diabetic eye disease and how important it is to make annual eye exams a routine part of diabetes self-management.
To learn more about NEHEP
resources and to obtain materials, visit
http://www.nei.nih.gov/nehep.
To help a friend or family member
learn more about diabetic eye disease, get tips on finding an eye care professional or find organizations that may be able to provide financial assistance for eye care, visit
http://www.nei.nih.gov/diabetes.
NOV 24 NOV 24
MAKE NOVEMBER 24TH
MAKE NOVEMBER 24TH THE BIGGEST DAY OF THE YEAR NOV 24
FOR SMALL BUSINESS FOR SMALL BUSINESS
MAKE NOVEMBER 24TH FOR SMALL BUSINESS
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To learn how to link your small business to the Messenger Marketplace, email us at
Marketplace@hamptonroadsmessenger.com
Scan this QR Code to learn more. No smartphone? No problem. Visit
ShopSmall.com
Scan this QR Code to learn more. No smartphone? No problem. Visit
ShopSmall.com
Scan this QR Code to learn more. No smartphone? No problem. Visit
ShopSmall.com
THE BIGGEST DAY OF THE YEAR THE BIGGEST DAY OF THE YEAR
Shop at the Messenger Marketplace to support local small businesses from now until Christmas at
www.hamptonroadsmessenger.com
Local bankers, working with local
members, lending to local businesses.
That’s the hometown way.
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