Chexsystems Problems?  Learn About Different
Bank Account Options
Author: Kurt Lehmann

If you're on the ChexSystems list, it's important to understand
the differences between and features of savings and checking
accounts.  You're probably shopping around for a better bank
account, and this guide can be a big help.  When it comes to
finding a good place to put your money, you have lots of
options.  There are checking accounts, savings accounts, money
market accounts and certificate of deposits (CDs).  Each one
offers different benefits, fits different needs, and has
different rules and requirements.  When you decide what's right
for you, there are a few things to consider.

- Some accounts can only be set up if you have a minimum
deposit.  If your account goes below that number, you'll be
charged extra or won't receive interest.

- On the subject of interest, it's important to pay attention
to how much is paid, and how often you'll get it.  Compare rates
in your local area to those from national financial institutions
at http://www.bankrate.com.

- Find out about limits on withdrawals.  Can you take out your
money whenever you choose, or is there a penalty?

- Look for deposit insurance.  A sign in the bank will tell you
that your money is protected by the Federal Deposit Insurance
Corporation (FDIC).  Credit union accounts also have protection,
but from the National Credit Union Administration (NCUA).

- How easy is putting money in and taking it out?  Can you
easily get to a bank or ATM, or would you need to get most
service online or via phone?  Find out if you can make
electronic transfers like direct deposits, too.

- If you're considering getting an account with check writing
privileges, you should also think about how many checks you'll
get, the maximum number of checks you can write every month, and
any penalties for going over that number.  Find out if there's a
maximum or minimum amount you can write a check for, and if
there's a monthly fee for the account.  Some banks will also
charge you a fee for each checks, or writing more than a certain
number every month.

- Look for policies that state there are holds on checks.  If
you deposit money over a certain amount into your account, there
may be a waiting period before you can get to it.  There might
also be a longer period of waiting if you deposit out of state
checks.

- What about overdrafts?  If you accidentally write a check for
more money than is in your account, you should know what
happens.  You could link your checking account to a savings
account so you'll be protected.  Otherwise, you could face high
fees from bounced checks, either written to you or coming from
you.  Since a bounced check can be bad for your credit, being
covered is a good idea.

Keep in mind that Check 21 (the new Check Clearing for the 21st
Century Act) lets banks clear checks electronically instead of
actually exchanging your paper checks. This means that there's
no requirement to return your original checks with your monthly
statement, or when there's a problem with a check.  Instead,
substitute checks are created, which are used as legal
representations of the originals. However, these aren't the same
as ordinary check images, which aren't eligible as substitute
checks.

It's always been a good idea to ask for your canceled checks
with your statement every month.  Now you'll receive substitute
checks each month instead.  It usually takes a day or two for
banks to process checks the old way.  Now, however, electronic
processing happens almost instantly.  This means that there's no
float time between writing the check and the time that the
money's taken out of your account, increasing the chance that a
check will bounce.  If you have your employer use direct
deposit, putting your paycheck directly into your account, you
can deal with the change in float time.  In addition to this,
the faster clearing time means that it's harder to stop payment.


About The Author: Kurt Lehmann is a financial services expert,
writing at http://www.stopchex.com and
http://www.nextdaycheck.com about ChexSystems, payday loan, and
debt issues.