• Banks want to encourage customers to do most of their banking with them, so if you have more than one account at the bank, you may qualify for no-fee or low-fee offers. If you have money in both checking and savings accounts, ask whether the balances could be combined for purposes of meeting the bank's minimum balance requirements.
  
  
• If you do not care about receiving your canceled checks back each month, you might qualify for a special deal on your checking account.

• Ask your banker about ways to reduce or eliminate charges that you pay. For example, if you write very few checks each month, consider a "basic" banking account. Remember always to read the fine print and think through the costs of switching any accounts.
  
  
• Your bank might give you a special deal on your checking account if you arrange for "direct deposit" of your paycheck (having your employer deposit your pay directly in your bank). Having funds automatically deposited into your account also can help avoid bounced checks.
  
  
• Look into special deals if you keep a certain amount in your bank account, arrange for "direct deposit", or do a lot of your banking electronically (ATMs, banking at home by computer).
  
  
• Some banks offer "clubs" with special offers or savings for certain groups, such as senior citizens. Check these out.
  
  
• Limit or avoid "surcharges" (access fees) at the automated teller machine by using your own bank's ATMs or those owned by institutions that do not charge fees to non-customers. If you do pay a fee, consider withdrawing larger sums each time so you will cut down on the number of transactions.
  
  
• If you are a good customer with a clean record, your bank might be willing to refund an occasional service charge for a late credit card or loan payment, a bounced check or some similar offense. You might also be able to get a lower interest rate on a credit card or other loan.
  
  
• Avoid bounced checks by balancing your checkbook.
  
  
• With "overdraft" protection, the bank will automatically honor a check you write even if you do not have enough funds in the bank account.
  
  
• Instead of ordering checks through the bank, consider buying them from less expensive sources, such as mail-order companies. If you write a lot of checks each month, the cost-savings could be significant.
  
  
• Every few years, compare your bank's costs to those of a few competitive banks. You may find a great bargain elsewhere or discover a better deal at your current bank. When comparison-shopping, concentrate on the bank accounts and services you actually use. Be aware that a low interest rate offered on a credit card or another loan may just be an introductory rate that could go up substantially after a few months.

What type of bank account should you open? The answer depends on how you plan to use the 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 right for you.

If you need to reach your money, however, a savings or checking account may be a better choice. 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 are often higher as well.

Remember, bank account features and fees vary from one institution to the next. If you have questions, you should ask a representative of the institution about any bank account features and fees BEFORE you open an account.

Bank Account Features to Compare
Information That Banks Must Disclose

The law requires depository institutions to provide you with -or disclose to you - the important terms of their consumer deposit accounts. Banks must tell you:

• The annual percentage yield and interest rate;
• Cost information, fees that may be charged; and
• Information about other features such as any minimum balance amount required to earn interest or to avoid fees.

You will usually be provided with disclosures before you actually open a bank account. However, if you ask for it, a bank must give you information about any consumer deposit account it offers. In addition, the law generally requires that interest and fee information be provided on any periodic statements sent to you.

In shopping for a bank account, it is important to look closely and compare features. Here are some of the most common features to compare:

Rates

Interest Rate - The rate of interest (interest is money a bank pays you for its use of your funds), expressed as a percentage, that an account will earn if funds are kept on deposit for a full year. It does not reflect the effect of compounding interest.

• What is the interest rate?
• Can the bank change the rate after you open the bank account?
• Does the bank pay different levels of interest depending on the amount of your bank account balance, and, if so, in what way is interest calculated?

Interest Compounding - The frequency that earned interest is added to the principal so that you begin to earn interest on that amount as well as on the principal. Often referred to as interest on interest. The more often interest is compounded, the greater the annual percentage yield.

• How often is interest compounded? In other words, when does the institution start paying interest on the interest you have already earned in the bank account?

Annual Percentage Yield (APY) - The APY is a rate that reflects the amount of interest you will earn on a deposit on a yearly basis expressed as a percentage.

• What is the minimum balance required before you begin earning interest?

When You Start Earning Interest - Interest is money a bank pays you for its use of your funds.

• Do you begin earning interest on the day you deposit a check into your bank account - called earning on your ledger balance?; or
• Do you begin earning interest later, when the bank receives credit for the check - known as earning on your collected balance?
  

Fees

• Will you pay a flat monthly fee?
• Will you pay a fee if the balance in your bank account drops below a specified amount?
• Is there a charge for each deposit and withdrawal you make?
• If you can use ATMs to make deposits and withdrawals on your bank account, is there a charge for this service? Does it matter whether the transaction takes place at an ATM owned by the bank?
• If you have a checking account or a money market account, how much will ordering checks cost? Will you be charged for each check you write?
• Are fees reduced if you have other accounts at the bank?
• Are fees reduced or waived if you agree to directly deposit your paycheck or government payments, like a social security check?
• What is the fee if you request the bank to stop payment on a check you have written?
• Is there a charge for asking how much money you have in your bank account (a balance inquiry)?
• Does the bank charge a fee for closing a bank account soon after it is opened? If it does, when will the fee be imposed?
• What is the charge for writing a check that bounces (a check returned for insufficient funds)? And what happens if you deposit a check written by another person, and it bounces? Are you charged a fee?
  
  Other Features

• Does the bank limit the number or the dollar amount of withdrawals or deposits you make?
• If you close the bank account before interest is credited to your account, will the bank pay you the interest that has been earned until that time?
• How soon does the bank allow you to withdraw funds that you have deposited to your bank account?

  Time Deposits - An account, such as a certificate of deposit, with a maturity of at least seven days, from which you are not generally allowed to withdraw funds unless you pay a penalty.

  • What is the term of the account? In other words, how long is it until the maturity date?
  • Will the account roll over automatically? In other words, does the account renew unless you withdraw your money at maturity or during any grace period provided after maturity? A grace period is the time after maturity when you can withdraw your money without penalty. If there is a grace period, how long is it?
  • If you are allowed to withdraw your money before maturity, will the bank impose a penalty? If so, how much?
  • Will the bank regularly send you the amount of interest you are earning on your account - or regularly credit it to another account of yours, like a savings account?

Debit cards . Special ATM cards known as "debit cards" will have a credit card logo on them, and a several digit number that can be used in much the same manner as credit cards. These debit cards are guaranteed by the credit card company that payment will be made, and most businesses will accept them in the same manner they would a credit card. But the purchases made with a debit card are withdrawn directly from your checking account as if you had written a check. If you use a debit card for something that costs more than the amount of money in your checking account, the request will either be denied, or you will be overdrawn and may have charges from your bank, just as if you had written a check for more than you have. And debit cards will not help build up your credit rating like credit cards do.