Banks Can Be Just a Riddle

It's raining and pouring here in the midwest. We've been looking at storm clouds for days and days. From Kansas City down to Oklahoma city, we're seeing pictures of flooding and damage from the long, hard rains.

On the way to town today we crossed over the Caney River which was already cresting. My nine-year old decided it was time for a good joke. He said, "What has two banks but never has any money?".

Well, my first impulse was to say, "Me!!". Do you remember as a kid thinking that as long as your parents had checks in their checkbook they most certainly had money! Well, if you have checks from TWO banks you must have LOTS of money!

Well, the real answer to our riddle was a river...two banks but no money. I thought that was pretty funny.

But, I thought maybe it gave me a perfect time to remind myself about banking tips you can use.

First of, find a free checking account. Many credit unions offer free checking with few, if any, conditions. Credit unions are non-profit financial organizations that exist to help you, their member. Just like traditional banks, your deposits are insured. In our area, just living or working in our county makes us eligible to join the local teachers credit union. It's easier than you think.

Get a detailed list list of all the banking fees and charges that your bank has established for your existing account. Be prepared. You may be being charged for obvious items like using automated teller machines (ATMs). But, you may also be charged for NOT using ATMs! Banks can charge you for counting your coins or for accepting rolled coins.

Use only your banks ATMs to avoid those unnecessary charges. Chances are if you use a machine outside your system, you will be charged with a large fee.

Going one step further, you might be facing "teller fees". If this is the case, use your ATM exclusively for deposits and withdrawals. Use direct deposits for your paycheck.
In most banks you can totally eliminate or at least reduce your monthly banking fee by keeping a minimum balance. Check your banking regulations to see if your account requires a minimum balance. Is that minimum balance something realistic that you can handle?? If so, change that account!

Unless your bank or credit union provides free checks, don't get checks from them. They can cost double that which is available through companies like Current or Checks in the Mail. Search the internet for great deals for "first-time" customers which should include free shipping on your first order.

Consider an internet bank. Although you won't have a local bank to walk into, they usually offers checking, free ATMs and they pay YOU 3% for your account balances! One company even offers FREE overdraft protection. Check them out on the web at www.ingdirect.com (ING Bank), www.compubank.com (CompuBank) or www.usaa.com (USAA Federal Savings Bank). As always, check out the fine print and find what you can easily live with.

This seems so obvious but don't bounce checks or debits. At a $20 or more penalty per occurrence, you could not only wipe out your savings but you could lose your privileges at your bank! Don't play "chase the check to the bank" games. That $2.00 check written on Tuesday may not arrive until Thursday where it meets up with the $200 check written Thursday morning. Now you've just incurred TWO insufficient funds fees. Balance your account after every transaction and stay smart.

Don't let banking be a riddle for you. With all the competitive services being offered at local branches as well as at internet sites, use you knowledge to acquire the best deal for your family. Then you won't be found up a creek without a paddle...so to speak!

Please contact us or leave a comment if you would like some more information on this topic.