Online and Phone Banking
Wherever you bank, you should be able to do it by telephone, Internet, or ATM, 24 hours a day, 7 days a week. Online banking is becoming much easier to use and more powerful. You can do most of your regular banking online, pay bills automatically, and much more. Many institutions also create instant activity reports that you can see and download to your computer. Some financial institutions are offering free online banking, so you may want to shop around.
You may be able to get online banking for a free trial period. Or try it out at a branch with a banking officer to see whether it will make your life more efficient-or more frustrating.
Download more detailed information on online banking (PDF)
How quickly do checks and deposits clear?
Ask your bank how many days it takes to:
- credit your account with "in-state" checks and "out of state" checks
- debit your account when you write a check or use online banking
Knowing this information will help to ensure that you have enough funds available to cover the checks you write and the cash you plan to withdraw.
New Check 21 Rules
The Check Clearing Act for the 21st Century (Check 21) went into effect October
2004. It allows bankers to transmit images of checks electronically, instead of
sending paper checks between banking institutions. Banking institutions must
have the technology for this process, so ask your banking officer whether
it's in place where you bank.
Check 21 will mean that deposits will be available more quickly for you to use; but it also means amounts will be debited from your account more quickly. So watch out for bouncing checks!
Overdraft Protection
If you're worried about the possibility of bouncing a check, ask about
overdraft protection. This checking feature creates a line of credit for you,
which is automatically used when there is not enough money in your account to
pay a bill. So instead of bouncing your check, the bank will pay the check
using money from your credit line. You may also be able to link your savings or
other type of account to your checking and have the money withdrawn from that
account when needed.
Ask your banking officer:
- what choices are available
- how they work
- what they cost
- how to set one up
Be sure to compare what you find with other financial institutions.
Beware of programs with names such as "bounce protection." They may not offer as much protection as standard overdraft protection, and they may even cost more.
