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Can we do without banks?Jun 18 '01 Write an essay on this topic.The Bottom Line Do your homework. Banking is important for your financial needs. Be comfortable with your bank. You will be a lot happier. Can we do without banks? No. Thank goodness because I'd be out of a job. I've been in banking 15 years now and enjoy most aspects of the job. Let me offer my humble opinion on how to get the most from your bank and the people who work there. Banks are important to you for the safety of your hard earned dollars. We must have a checking account to function easily in the world. And please don't mess up your account because too many bounced checks and the bank WILL close your account and report you to Chexsystem, which is a company most banks use to report bad accounts, and it will take seven years for your name to fall out of that system. In the mean time no other bank will open an account for you because they all check your ID with that system. Keep only enough money in your checking account to cover your bills etc. All extra money should go into an interest bearing account. There are several types of accounts for your needs. If you have a sizable amount (5,000.00 or more), and need to have it liquid, keep that in a money market. Different banks have different balance requirements. Check around to see. A money market is a good choice instead of a savings account because the funds are available to you at all times with check writing capabilities. The drawback is that you can only write three checks per month on the account. You can make unlimited deposits in a money market so use it as a savings account and keep in mind that a money market is a tiered interest account, so the more you have, the more you get. Usually the interest is around 4% for a money market account. A savings account typically pays 2% interest and is difficult to get your money because you have to visit the bank. The best choice for a high interest account is a certificate of deposit, (CD). This is a contract with the bank where you leave your money in the account for a certain length of time and the bank pays you a certain percentage guaranteed not to change for that time. The drawback to this is that if you needed the money there is a hefty penalty to withdraw it. Typically three to six months interest, earned or unearned. Always get an ATM card for emergencies but don't use it unless you have to. It is too easy to forget to record in your checkbook that a withdrawal has been made and you could end up bouncing checks. A good bit of advice I would like to offer is always make your deposits before two o'clock and withdrawals after two. The reason is that you will get interest on your deposit the same day if it is before the bank has "turned over their business date". And if you make a withdrawal after the bank has turned over it won't show on your account until the next day so you will have earned interest on your money even though you took it out. And please when you go to the teller to cash a check and she or he has to get approval don't ask "is there a problem?". There is no problem it is just that the tellers have strict check cashing limits and cannot cash a check without getting approval from a second person. If there is a problem, trust me, you will be told without your asking. If you want to open an account or have a problem to discuss with a customer service representative the best time is an hour after the bank has opened, not at lunch time and NOT five minutes before the bank closes. The reason is that first thing in the morning there is a lot of rushing to do the opening procedures and other morning work. Lunch time is always short handed and you will wait. Closing is never good because I guarantee you will be rushed and rushing means errors could occur. Also the poor rep. is tired and wants to go home. Another tip is please don't sit at the desk of a rep. unless asked to do so by the rep. Most times the rep. is working on account sensitive information and needs privacy. You will be taken as soon as possible. Always shop around for the best bank for your needs. You can get all the information you need by telephone. It is important that you like your bank and the people that work there. And that they like you. You will get better results for your money.  |
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