Understanding Bank Practices Will Save You Money and Aches


Banking has surely brought about a lot of conveniences to our lives when it comes to financial transactions. But as the conveniences are enjoyed do not be unaware of bank practices. You need to stay on top of various aspects in the banking relationship. We will be talking about such areas you need to stay informed about in order to have a happy banking experience.

Account balances

How informed are you about this? When you maintain a bank account, do not leave the work of subtraction and addition to your bankers to do alone. It is advisable to have your own records. Ensure you write down all the credits and debits to your account in your checkbook log so that you will have a reference in the event of a disagreement with your banker. Keeping this record will also help you to have an understanding of the fees that your banker is applying to your account. You will also be able to determine the extent to which you can make withdrawals, even without calling on your bank, through this means and you will be able to prevent paying overdraft fees.

Deposits and holds

Have you had an experience with your bank about checks which were deposited to your account and you are denied access to the funds? Banks do place checks deposited to you account on hold, that is you will not have access to the funds until the hold period is over. This is to ensure that the instrument, check, is not returned to the bank unpaid so as to protect you and the bank from any form of loss that may result from the non-payment of the check. The hold period generally runs between two to five working days.

Debit Cards

These are cards that come with your account at the point of opening. They are actually tied to your account. Any purchase or withdrawal you make with this card will reflect on your account balance. They are not like credit cards that are attached to a line of credit.

Your Credit rating

It has become more important now than before for you to have a good understanding of your credit rating. It is a determinant when you are out asking for a loan to buy a car, or you want to buy a home or applying for a credit card even in getting employment in some companies. Your credit report is determined from the information about you which is gathered from institutions like banks, tax authorities, finance companies department stores and landlords, . You are entitled to a free credit report every twelve months from credit-reporting agencies.

Interest Rates

If you handle your credit responsibly, that can qualify you for interest rates. The interest rate you pay for credit can be affected by what happens in the larger economy. If banks have to pay higher interest rates to obtain the money to give out as loan, then, you will have to pay a higher interest rate to enjoy the loan.