Banking is the business conducted or services offered by a bank. It has been changing in many different ways over a lot of years.
You learn what a savings account is off my savings page but I didn't tell you about what banks you should get one at. Normal banks have very low interest rates, so going on online banks would be an easier way to get an interest rate of 1% or higher opposed to the traditional 0.01%. It may not seem like a lot but it could be there difference between $100 and $1 on a $10,000 savings account. Keeping it on an online account also helps you not want to raid it as much. This also goes for emergency funds. |
Checks are In legal terms, a check is a bill of exchange, or a document guaranteeing a certain amount of money, where the drawee is a bank. The use of checks allows two or more parties to make a monetary transaction without actually exchanging currency; rather, the amount for which the check is written is a substitute for physical currency of the same amount. If a person does not have as much money as they are paying with the check, the check will bounce, or cannot be processed and may cause the person who writes it to have to pay a fee.
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ATMs (Automated Telling Machines) are machines that dispense cash or perform other banking services when an account holder inserts a bank card. They are usually found in easy to get to places. If you debit card is from a certain bank then you should use ATMs that have your bank's logo on them. Using ATMs that don't have your bank's logo on them may cost you a fee. If you use an online bank then you can use any ATM without a fee.
Public BanksThese are banks that are actual buildings that you go to. Most banking companies are tearing them down ad slowly switching into Online Banks because it costs too much to have an actual building. On the other hand, elderly people still prefer traditional banks and that's why companies keep a few in each state.
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Online BanksThese banks don't have any actual buildings you can go to. They are only online, and most people under the age of 40 would prefer them. You're usually covered up to $250,000 of losses if someone hacks into your Bank Account. They also require lower monthly balances and have eDeposits where you take a picture of both the sides of a check and upload to make a deposit. Lastly there are also better interest rates.
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FED (Federal Reserve)
It does these things :
- conducts the nation's monetary policy to promote maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy;
- promotes the stability of the financial system and seeks to minimize and contain systemic risks through active monitoring and engagement in the U.S. and abroad;
- promotes the safety and soundness of individual financial institutions and monitors their impact on the financial system as a whole;
- fosters payment and settlement system safety and efficiency through services to the banking industry and the U.S. government that facilitate U.S.-dollar transactions and payments; and
- promotes consumer protection and community development through consumer-focused supervision and examination, research and analysis of emerging consumer issues and trends, community economic development activities, and the administration of consumer laws and regulations.