If you are new to the concept of banking or just need a refresher, we’re going to go over the basics of banking institutions. We’re going to describe in detail the various services that are offered at all banks. This will help you to get a better idea of what your local banks can do for you. Let’s dive in below.
These are accounts where you can store your money safely. When you go to deposit your paycheck or if you have direct deposit, your money goes into your checking account. Some banks now offer money market checking accounts where you can get paid dividends on the money that you have in your checking account. This is typically a small incentive to get you to leave more money in the bank instead of spending it.
Most checking accounts at the best credit unions will come along with a debit card. This card will allow you to access the funds from your checking account when you make purchases. Debit cards can be used just like credit cards, except the money comes directly out of your account. With credit cards, you’re actually borrowing the money from the line of credit you are advanced.
Loans And Line Of Credits
Banks rely on their loan and line of credit customers to make money to stay in business. Loans are typically given to those bank members who meet the minimum requirements set by the bank. In the case of a loan, the bank will give the client a set amount of money. The client will be expected to pay back the principal loan amount as well as interest that accrued on the loan according to the time schedule they set up with the bank.
Lines of credit work similar to a credit card. The bank will authorize a specific client the ability to the borrower up to a maximum amount of money. The client has access to this money at any time they would like to use it. They may borrower the entire amount or just a partial amount. Once the borrower takes the money out, they will be required to pay it back plus any interest that accrued during the time the money was taken out.
Most banks have an ATM within their location. This is typically accessible via an outside room or panel in which the customer can use. The word ATM stands for automated teller machine. This machine allows the customer to take out cash from their checking or savings account at any time they would like to. Banks will issue an ATM card for their customers. Most ATM cards are dual cards that work for both the ATM and as a debit card.
The banking industry is full of many players, both big and small. The services that are offered at each bank may slightly vary to the next as more services lead to more of an advantage over competitors. However, the typical services listed above are available at all banks that you can become a member of.