Check-In #5 - Select a Checking Account

Which of the following would likely be LEAST important to a college freshman looking for a checking account?

• The interest rate they'll earn on money in the account

• How accessible a bank branch or ATM is to their college campus

• Whether the bank has a minimum balance and/or waives annual fees for students

• Whether having the account will be convenient both on campus and when the student is home for holidays and summer break

Which individual would likely get the MOST benefit from opening a checking account at a large national bank with many branches?

• Carlos, who has lived and worked in Omaha his whole life

• Pilar, who travels at least twice a month for work to cities across the US

• Mina, who is quite tech-savvy and attends community college in her hometown

• Lawrence, who, as a bartender, earns a lot of money in cash during each of his shifts

Which individual might value access to a local bank branch or their bank's ATMs MOST?

• Minnie, who attends college in Rhode Island but whose hometown is in Nebraska

• Brendan, who tries to do all of his purchases using his credit card and then pays it off using online bill pay from his checking account

• Olivia, who is quite tech-savvy and whose company pays her using direct deposit

• Marcus, who, as a waiter, earns most of his money in cash during each of his shifts

Which of these best describes why you should make sure your bank is FDIC insured?

• It guarantees you will get all of your money back, regardless of balance, if your bank goes out of business

• It guarantees you will earn interest on your checking account balance up to $250,000

• It prohibits your bank from charging fees unless you have over $250,000 in the bank

• It guarantees you will get all of your money back, up to $250,000, if your bank goes out of business

Which of the following is TRUE about checking accounts?

• Banks are required by law to offer the same interest rate on checking accounts

• Online banks typically have higher fees because it costs more to do business over the internet

• Banks are required to disclose the fees on their checking accounts

• Online banks do not allow customers to take money out of ATMs

When you open a checking account for the first time, you need to have each of these items EXCEPT…

• Proof of employment, such as your last paycheck

• The required minimum deposit

• A legal form of identification, such as Social Security card, driver’s license, or birth certificate

• A completed application

What items should you expect to receive after being approved for a checking account?

• A checkbook, a credit card, and an ATM card

• A debit card, a checkbook, and a new email account for online banking

• A direct deposit application, a debit card, and a checkbook

• A checkbook, a debit card, and deposit slips

While driving to school today, you see this billboard on the side of the highway. Why should you be suspicious of this advertisement?

• This is a credit union, and they are known for running scams to attract customers

• The interest rate on a checking account is the amount the customer owes the bank each month, so 7% is quite high

• Interest rates on checking accounts are typically very low -- 1% or less -- so this is way outside the norm

• It is illegal for banks to offer interest rates on checking accounts

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You are looking to open a checking account without overdraft protection. You only have $50 to open the account and anticipate depositing half of the $50 you receive per month in allowance. You’ll then use your debit card to fill up your gas tank and dine out with friends. Of course, you want to make sure that your money is protected in a safe financial institution and that you don't have many fees with the account. Which is the MOST important question you should ask before selecting an account?

• What interest rate will you earn on your monthly balance?

• Is the bank willing to extend the FDIC insurance higher than the typical $250,000?

• What, if any, monthly fee(s) will you be charged with this account?

• Does this checking account come with a debit card?

If you’re looking for a really great student checking account, you should expect each of the following to be free EXCEPT...

• Out-of-network ATM usage

• In-network ATM usage

• Online banking

• Bill pay