Financial Literacy test Thursday

How are prepaid cards similar and different to debit cards

How they are similar- Both will not require a credit check, both offer certain protections Different- Unlike a debit card, a prepaid card is not linked to a bank account

Are there fees to use overdraft protection

You'll have to pay whatever fee your bank charges. It doesn't necessarily eliminate overdraft fees altogether. Many banks assess a fee per overdraft protection transfer, which can result in multiple fees in a single day. Transactions may be declined if you don't have sufficient funds in your linked savings account No, a fee is present for the transfer but it is significantly less than an overdraft. -Fees and terms associated with each bank vary

Out of network ATM

Your bank's non-network fee: Your own bank may also charge you a "non-network" ATM fee for using an ATM operated by another bank or institution. These charges will typically cost between $2.00 and $3.50, depending on your bank and the tier of service you're enrolled in

When/ Why would you use a check

Checks can be used to make bill payments, as gifts, or to transfer sums between two people or entities. They are generally seen as a more secure way of transferring money than cash, especially when there are large sums involved. You can cash a check by taking a picture of it

How to protect your online checking account

Choose Strong and Unique Passwords. ... Enable Two-Factor Authentication If Your Bank Offers It. Steer Clear of Public Wi-Fi. ... Sign Up for Banking Alerts. ... Be Wary of Phishing Scams. ... Choose Wisely When Downloading Financial Apps.

What to do if a lot of fees start appearing on your account

Contact your bank and have a chat -They may be able to find you a more suitable account, with lower fees or no account keeping fees at all

Steps to reconcile a checking account

Get bank records. You need a list of transactions from the bank. ... Get business records. Open your ledger of income and outgoings. ... Find your starting point. ... Run through bank deposits. ... Check the income on your books. ... Run through bank withdrawals. ... Check the expenses on your books. ... End balance.

Overdraft coverage definition

Overdraft coverage is a service your bank may offer where your everyday one time debit card and ATM transactions may process even if you have insufficient funds in your checking account to cover the transactions. The bank covers the shortage until you repay it and may assess you an overdraft fee for doing so.

Benefits of using a mobile wallet

They may help to reduce fraud. The data stored in mobile wallets is encrypted, meaning your actual card account numbers aren't transmitted while making a payment. ... They can save you time. ... You can trim your wallet contents. ... You can shop online on the go. ... You still receive rewards.

Who would benefit from person to person payments

The Advantages of P2P PaymentsHands down the main advantage with P2P payments is the convenience, speed, and ease-of-use. As mentioned earlier, transferring funds from one person to another can be accomplished through a click of a button. Another perk is the costs involved.

Withdrawal vs Deposit

is that deposit is to lay down; to place; to put while withdraw is to pull (something) back, aside, or away.

Dangers of using a mobile wallet

3 big mobile payment security risks Losing your phone. It's like losing your credit card. Cyberthieves who spoof your mobile wallet. Malware on your cellphone.

Prepaid cards

A card that is loaded with a specific cash amount before you use it but then looks and works like a credit card until the full value is spent.

Direct deposit (General information about it)

A direct deposit, in banking, is a deposit of money by a payer directly into a payee's bank account. Direct deposit is a fully automated method of handling transactions. When receiving a direct deposit, the payer issues an electronic payment that is automatically transferred into the payee's checking account. There is no need for a physical check or for either party to visit the bank for the money to transfer. Funds are sent electronically from your employer into your bank account Safer than a paper check Convient Immediate access to funds increases your ability to save

Auto Bill Pay (General information about it)

An automatic bill payment occurs when money is automatically transferred on a scheduled date to pay a recurring bill, such as a mortgage, credit card, or utility bill. Individuals can set up an automatic bill payment through their online checking account, brokerage, or mutual fund to pay their monthly bills

Person to person payment definition

An online process that allows you to send money directly from your checking account to a friend via email or cell phone.

What to do when you see suspicious activity in your checking account

Contact your bank. The first thing you should do if your account has been compromised is call your bank as quickly as possible. You need to notify your bank of suspicious activity. Also, the sooner you report fraud, the more likely you are to have the charges dropped. (Unusual activity alert)

differences between credit card and debit card

Credit Card- Putting money in to buy something (Borrowing money, banks money) Debit Card- Taking money out to buy something (Spending your money)

how are credit cards funded

Credit card companies make the bulk of their money from three things: interest, fees charged to cardholders, and transaction fees paid by businesses that accept credit cards. Use credit cards wisely, and you can minimize the amount of money that credit card companies make off of you.

Banks vs Credit unions

Credit unions tend to have lower fees and better interest rates on savings accounts and loans, while banks' mobile apps and online technology tend to be more advanced. Banks often have more branches and ATMs nationwide.

Mobile alerts

Low balance- -Gives you a heads up when your bank account drops -Could be helpful for people nervous about racking up overdraft fees Unusual activity--Notifies you when their is a change in your account status thats beyond the norm -Immediately made aware of any strange activity Mobile Deposit- -By setting up direct deposit alert, you'll know when money sent electronically to your account is ready for use -Alerts beneficial for tracking spending, account balances, and monitoring for identity fraud.

Fees involved with checking accounts

Monthly service fee. Overdraft fee. Non-sufficient funds (NSF) fee. ATM fee. Paper statement fee. Foreign transaction fee. Account closure fee.

CHECKING ACCOUNT BASICS

OK

CREDIT CARD VS DEBIT CARD

OK

KNOW

OK

OVERDRAFT PROTECTION VS OVERDRAFT COVERAGE

OK

PERSON TO PERSON PAYMENTS

OK

Pros and cons of Overdraft protection

Pro: Your transaction will happen. Con: You will pay fees and interest. Con: Transactions may not clear if your backup source is low or empty. It could save you from embarrassment, too. The cost is usually substantially less than paying an overdraft fee. It may allow checks to clear, which in turn can help you avoid returned check fees from merchants. It can provide access to funds in times of emergency. It may be beneficial if you have a cushion so that you don't get declined, it could reduce your overall fees.

The importance of using a check register and how often should you update it

Review your checkbook register at least once a week to ensure that you've entered all checks, deposits, and other transactions. You can control your cash flow and know how much money you have in your account.

How are prepaid cards similar and different to credit cards

Similar- Just like regular credit cards, prepaid credit cards have a number and an expiration date printed on the front or back, and they generally can be used in the same places. The amount of money deposited or "loaded" onto the card represents the card's credit limit—that is, how much can be charged on it. Different- Prepaid cards are very different from credit cards. This can be confusing because both types of cards may have a card network logo such as Visa, MasterCard, American Express, or Discover on them. When you use a credit card, you are borrowing money. Generally, when you use a prepaid card, you are spending money you have already loaded onto the card in advance. If your prepaid card provider also offers credit (including overdraft) on your prepaid card, it will need to comply with all the rules for other credit cards.

how are debit cards funded

Typically, both cards carry the logo of a major credit card company, such as Visa or Mastercard, and both can be swiped at retailers to purchase goods and services. A debit card, however, uses funds from your bank account. A credit card uses a credit line that can be paid back later, which gives you more time to pay.

Ways to avoid fees

Utilize free checking and savings accounts. Many banks still offer them. Sign up for direct deposit. ... Keep a minimum balance. ... Keep multiple accounts at your bank. ... Use only your bank's ATMs. ... Don't spend more money than you have. ... Sign Up for Email or Text Alerts.

What situation would be involved with person to person payment

We've made it fast, simple and secure with our Person-2-Person Pay feature. You can send money from your checking account without exchanging checks, cash or account numbers. Or, have them send money to you. ... The recipient will receive a text message or email with instructions on how to claim the payment.

Checking statement vs checking agreement

What Is The Difference Between A Checking Agreement And A Checking Account Statement. The main difference between these accounts is that money from a current account is your own money from deposits and the funds in a credit card account are money that is lent to you by the card bank

Overdraft protection definition

What is overdraft protection? Overdraft protection is a service provided by your bank that ensures your transactions are covered if you have insufficient funds in your checking account. The bank will automatically move funds you have available in another linked account to the overdrawn account.