Money Basics: Checking & Savings Accounts

Money Basics: Checking & Savings Accounts

Most student-athletes already setup a checking account for direct deposits; however, having a savings account can be just as stocksnap_rzwm4t2uadvaluable. A saving account provides a safe holding place for your money for future use or unexpected expenses. Although money cannot be taken out as easily as a checking account, the benefit of a savings account is the ability to earn interest. Interest is the award a bank grants you for keeping your money in its accounts. The interest rate may be small, but it grows over time.

A checking account allows you to easily put money into your account (cash or check deposits) and take money out (withdrawals). A withdrawal can be made in the form of a check, debit card, or ATM cash withdrawal. All banks have different benefits, features, and fees attached to their accounts. Be sure to check around for one that best fits your needs. Most banks have free student checking.

A check is a safe and convenient was to pay for items from a checking account in paper form. A debit card is a way to pay for things in the form of a card. A debit card is similar to a credit card; however, money is immediately withdrawn from your account rather than paid off in the future. Checks and debit cards are great ways to avoid carry large amounts of cash.

Along with checking and saving accounts, banks offer online or mobile banking. This allows you to conveniently track your deposits and withdrawals. Online banking is a paperless form of banking. Here you can transfer monies between accounts and set up automatic bill pay for necessities such as rent, electric, and water bills. Mobile banking makes it possible to deposit checks without going to a physical bank location.

Overdraft protection enables you to link another account to your checking that automatically transfers money from one account to the other when you don’t have enough money in your checking to pay your transactions.

To learn more about the basics of financial literacy, visit Hands on Banking’s “Getting Started” online resource center.

 

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Posted on

December 9, 2015

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