SECTION FIVE: Key Banking Terms and Features to Pay Special Attentions

This section is focused on key terms that come up when applying for a bank account, whether it is a saving, check, money market, or a certificate of deposit.  These terms are common and will show up in virtually all bank account applications.  Please feel free to notify us if you see an important term missing on our list, as this is always in the process of being updated.

Fees - basics

• Monthly Fee
  This number should be $0 unless you are unable to open an account everywhere else.
• Monthly Charge below Minimum Balance
  This is common for interest bearing accounts.  Obey this or the interest earned might not be enough to cover the fine!
• Currency Conversion Fee
  This is for using your ATM or Debit card while abroad.  The closer to $0, the better the deal is.
• Account Closing Fees
  This is usually $0, although there might be a fee if you close your account within 60, 90, or even 180 days.
• Overdraft Fees
  This is when you withdraw more than what you have on your account.  Some banks offer overdraft-protection that will charge you a certain interest rate if the overdraft amount is within a certain preset limit.
• Bounced Check Fee
  This is when you write a check that exceeds the amount to have on your account. The fee usually ranges from $20 to over $100.  You really have to be the one responsible to avoid bounced checks. 

Features - should have's

• ATM Card
  This is standard for most banks unless you have absolutely no need for it.  You can withdraw money from your bank accounts (usually savings, checking, and money market) from ATM machines.  You can also request cash back from purchases at stores that allows it.
• Debit Card
  Almost all checking accounts offer this.  This is similar to an ATM card except that it comes with the VISA or MasterCard Trademark.  You can use this anywhere that accepts that credit card brand and all your transactions will be debited from your checking account instantly.
• Local Presence
  This is very important if you are planning on using the account as your primary account.  That is, if you plan on depositing cash, checks, etc. to that account and you want to go there fairly often, perhaps even to use their safe deposit. 
• ATM availability
  It is true that most ATM cards can be used in most ATM machines.  However, they will usually assess a fee for ATM cards from different banks than the one the ATM machine belongs to.  Therefore, it is important to have that bank’s ATM around where you tend to use the most.  Another option is to choose a bank that will refund fees incurred on ATM uses.  More below.
• Online Banking
  We live in the digital age.  No online banking = no way!  But on a more serious tone, online banking is vital especially if we want to pay credit card bills, check balance, transfer fund, and such. 
• Check Imaging
  Many banks offer this free.  They scan the check you wrote when they receive it and link it to your transaction.  You will in turn be able to see who and when you wrote that check to and on.  This is more useful than we might think especially if you are someone that tends to forget to keep a record of your checks.

Specialties - sweetens the deal

• Competitive APY
  A bank offers a competitive APY if it is comparable to the high yield accounts we tracked here on Money Economics.  Before you open an account, you should always check to make sure your deal is a good one.
• ATM Transaction Fee Refunds
  This is getting common in recent years as a perk.  They will refund your ATM fees, usually up to $25 or $50 a year, incurred on ATMs that are not part of the bank.  This is especially true for the banks with strong internet presence as they try to attract business nationwide.
• Currency Conversion Fees Waiver
  This is absolutely one of the best perk ever!  For people that enjoy traveling, the fees associated with ATM withdraws will include ATM fees and then a currency conversion fee.  If they are waiving the conversion fee (usually a certain percentage of the amount withdrawn), they might have also waived the ATM fee.  This in turn can easily save you $10 or more when you visit an ATM machine abroad.
• Free Traveler Checks
  This is more often offered to premium accounts than the basic ones.  Free traveler checks will save you a few good dollars every time you need them.
• Free Toasters
  This doesn't really have to be a free toaster, it can be something else. Similarly, this is for any free gifts that the banks offer as an account opening perk. Anything free is a good addition, and these free items have been ranged from $50 to $200 or an Apple iPod. Sure might not be as useful in the kitchen but certainly better than nothing.