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requirement or free checking. Many banks have student checking accounts which are no-frills accounts . These often have no monthly service/maintenance fees, no minimum balance restrictions, and a few free non-bank ATM withdrawals each month. Read the Account Disclosures. When you open a checking or savings account, you’ll be provided with a form that contains a lot of important information about how your account operates. The form is required by law. It may be called the Deposit Agreement and Disclosure, Consumer Account Disclosure or some such similar name. Read it carefully and grill the account representative about the account’s restrictions. Know exactly what the account terms are and when fees will be charged — particularly if you maintain a low balance. Ask the account representative to demonstrate how to use the account management tools to protect against fees. Download the bank app. Almost all banks these days have mobile apps. Banking apps make it really easy to monitor your account 24/7. Download the app to your cell phone or mobile device and create account alerts . The bank will message you by text, email or even phone call if and when your account drops below the minimum balance requirement. Stay above the minimum balance (duh). Do your best to keep your account balance above the minimum balance requirement , if there is one. That may mean shifting your spending priorities or downgrading your lifestyle when funds get tight. Instead of that triple grande mocha-latte with whip, go for a regular cup of coffee. If your account does not have a minimum balance requirement, you must be careful to monitor your balance to avoid expensive overdrafts. Raise the low balance threshold. Most accounts allow the depositor to set an amount that will trigger a low balance alert. Set your personal low balance alert higher than the bank’s minimum balance requirement so you have plenty of warning when you are getting close to dipping below the minimum balance or overdrawing you account. If there is no minimum balance requirement, its a good practice to establish your own. Set your account to alert you when it falls below that amount. Use your debit card sparingly until you’ve deposited more money. Link your accounts. Most banks enable account holders to link their checking accounts with their savings accounts for overdraft protection . Some banks will even combine the balances of an account holder’s savings and checking accounts to prevent them from dropping below the minimum balance. Some will enable an account holder to link their account to a credit card , so there are always funds available to back up purchases, though this could obviously lead to trouble if the card is drawn on too frequently. Many banks will not tell you about these account benefits unless you ask — so ask the account representative about these things when you open the account! Ask for a Waiver. If you incur an overdraft fee or minimum balance charge but rarely overdraw your account or fall below the minimum balance, call the bank and ask them to waive the fee. An account holder with no or very few prior violations may be able to convince the bank to reverse the fee and put the money back into their account. Close accounts you don’t use! Don’t risk being charged fees. If you are not using a checking account, close it . PRODUCT PREVIEW
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Chapter 2 | Battler of the Banks
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