Bank Accounts in the USA

The Federal Deposit Insurance Corporation (FDIC) helps keep your money safe by protecting bank account deposits up to $250,000 for each depositor at each insured bank. FDIC insurance is backed by the United States government, and since the FDIC was founded in 1933, no depositor has lost any FDIC-insured funds. Banks and institutions insured by the FDIC must display an official sign at each bank teller window or station.

You can also verify whether a bank is insured by the FDIC by searching insured banks on the
FDIC's website or calling the FDIC's Division of Compliance and Consumer Affairs (DCA) toll-free at 800-934-3342.

FDIC insurance covers all deposit accounts, including checking and savings accounts, money
market deposit accounts and certificates of deposit. Remember that FDIC insurance covers only deposits. Mutual funds or annuities you buy at your bank are investments, not deposits. That is
why the FDIC does not insure them against loss.

Depending on how your bank accounts are structured, you can even have more money
deposited in one bank and still keep your money safe and fully protected. For example, you may qualify for more coverage if your bank account has more than one owner or if you have money in different ownership categories. You do not need to worry if you or your family has less than $250,000 in all your accounts at the same bank. But if your combined bank accounts total $250,000 or more, make sure they are within the insurance limits. If you have any questions
about FDIC insurance coverage and if your bank accounts are safe, you may call the FDIC and
speak with a deposit insurance specialist at: 800-934-3342.

Questions about federal deposit insurance at credit unions should be directed to the National
Credit Union Administration (telephone 703-518-6300; address: 1775 Duke Street, Alexandria, Virginia 22314-3428).

What Type of Bank Account is Right for You?

What type of bank account should you open? The answer depends on how you plan to use the
bank account. If you want to build up your savings and you think that you will not need your
money soon, a certificate of deposit may be the right type of bank account for you.

If you need to reach your money, however, a savings or checking account may be a better type of bank account for you. You will probably find that a checking account is best for you if you plan to write several checks each month (for example, to pay bills). But if you usually write only two or
three checks each month, then a money market account might be a better deal. Money market accounts usually pay a higher rate of interest than do checking accounts, but minimum balance requirements for this type of bank account are often higher as well.

ATM Cards and Bank Debit Cards

For many bank accounts, banks can issue you debit cards in the form of basic Automated Teller Machine cards -- ATM cards -- that let you obtain 24 hour access to money in your bank account through ATM cash machines, or more sophisticated bank debit cards that let you use ATM
machines plus use your bank debit card for purchases.

When you use a bank debit card, funds come directly out of your bank account (just like writing a check). Because ATM card withdrawals and bank debit card purchases are listed on your monthly statement, you can track your spending.

Certain bank debit cards may have the logo of a familiar credit card company on them. Do not be confused. These cards are designed to provide you the convenience of making purchases wherever such credit cards are accepted (millions of businesses worldwide), but the purchase amounts are subtracted directly from your bank account and listed on your monthly bank statement. Bank
debit cards do not extend you credit or generate separate bills. They also do not help you build a credit record, which may be important if you intend to purchase a car or home.

Your bank will provide you with a personal identification number (PIN) to use with your ATM
card or bank debit card, which is essentially a password for electronic access to your bank
account. With your ATM card or bank debit card and your PIN, you can withdraw cash, make deposits, or transfer funds between bank accounts, plus pay for retail purchases with certain
cards.

When you withdraw cash, some ATMs charge a fee if you are not a member of their network or are making a transaction at a remote location. ATMs must disclose the fee on the terminal screen or
on a sign next to the screen.

Report a lost or stolen ATM card or bank debit card to the issuer immediately. If you report an
ATM card missing before it is used without your permission, you are not responsible for any unauthorized withdrawals. Federal regulations limit your liability to $50 if you report the loss
within two business days after you realize your card is missing, and to $500 if you report the loss between 2 and 60 days. Under Federal law you could lose all the money in your bank account
and the unused portion of your line of credit established for overdrafts if you fail to report an unauthorized transfer or withdrawal within 60 days after your bank statement is mailed to you. However, self-imposed industry rules limit your liability to zero if you report the loss within two business days, and to $50 if you report it more than two business days after realizing your card is missing.

Purchases made with a bank debit card are handled in one of two ways: either you enter your personal identification number, as you would at an ATM, or you sign for the purchase, similar
to a credit card transaction. Ask for a bank debit card that must be used with a PIN to make it
harder for thieves to use your lost or stolen cards or account numbers.

Keep your PIN a secret. Do not write your PIN on the card or on a slip of paper kept with your
card. Take your ATM receipt after completing a transaction. Reconcile all ATM receipts with bank statements as soon as possible.

When you use a bank debit card for purchases, these purchases will be shown on the periodic statement of your bank account. If there is an error on your account, contact your bank or the
issuer of the card at the address or phone number the company provided. When you use an electronic funds transfer, federal law does not give you the right to stop payment. It is up to you
to resolve the problem with the seller.

Stored-value cards, issued by some financial institutions and merchants, contain cash value
stored electronically on the card itself. Stored-value cards and the transactions you make using
them may not be covered by the Electronic Funds Transfer Act, which means you may not be covered for loss or misuse of the stored-value card.

Information taken from Foreignborn.com

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