Banking
There may be some aspects of banking in the United States that are unfamiliar to you. Participate Learning is able to assist you with the banking process in several ways. First, we’re pleased to set up a U.S. bank account for you and arrange for you to receive detailed information about your account from a representative of your bank at your Participate Learning orientation. Also, in order to help you feel more comfortable with the U.S. banking process, we have provided a list of basic banking terms, general requirements for checking accounts, and information on automated drafts and direct deposits. In addition, we have included some helpful hints about avoiding monthly fees and overdraft or non-sufficient funds (NSF) fees.
Basic banking terms
ATM (Automated Teller Machine)
- A machine that allows you to access your account to withdraw and deposit funds.
- Located throughout your community.
- Generally free at those operated by your bank; other banks’ ATMs may charge fees to withdraw or deposit funds.
Debit/ATM Cards
- These cards are issued by your bank and look like a credit card (with a Visa or MasterCard symbol on them) but work like a check.
- Provides access to withdraw or deposit funds through the ATM.
- Money spent is automatically deducted from your checking account.
- Requires a Personal Identification Number (PIN).
Automated Bank Draft
- Withdrawing money from your account electronically, with your prior authorization, usually to make a recurring payment.
- Sometimes called a Pre-Authorized Debit or Debit Order.
Overdraft or Nonsufficient Funds (NSF)
- There are not enough funds in your account to cover checks you have written or other drafts or ATM withdrawals you have made.
- Your bank will charge you a fee for every NSF occurrence (usually $36).
- The merchant to whom you were writing the check will also charge you a fee if the check can’t be cashed due to NSF.
PIN (Personal Identification Number)
- A confidential number generated by your bank used to access your funds when using your check/debit/ATM card for transactions and purchases. You should not share this number with anyone.
- Change your PIN any time by visiting your local bank branch office.
Why use a bank?
Banks provide a safe and convenient way of receiving money through Direct Deposit and most banks allow you to transfer money from one place to another by using checks, telephone, ATM or computer. Banks also provide you with interest (depending on the type of account), regular bank statements to monitor your banking transactions and banking history. Having a checking account established with a bank:
- gives you the ability to write checks to pay bills or obtain cash
- provides you with an account in which to have your payroll check deposited
- helps you maintain a record of payments with your check register, monthly statements and cancelled checks
Regular Checking Account Requirements
At most banks, you must maintain a minimum balance (determined by your bank) in your account or face monthly charges for debit transactions and maintenance. Debit transactions include writing a check against your account, using your debit card to make a purchase or withdrawing money from your account by using an ATM.
Avoid Monthly Service Charges and Fees
- Don’t spend more money than you have in your account.
- Find out exactly what the balance and transaction requirements are, as well as the costs or fees associated with your account.
- Every time you write a check, use your debit card or withdraw money from an ATM, write it in your check register.
- Balance your checkbook regularly to know how much money is available in your account. Keep it updated throughout your statement cycle.
Automated Drafts and Direct Deposits
Examples of automated drafts from your account:
- Car and insurance payments that you may authorize
- Health benefits premiums
- Family health benefits, if applicable
- Dental insurance, if applicable
- Some utility company bills
Examples of direct deposits to your account:
- Paycheck
- Participate Learning Salary Advance
Identity Theft
Identity theft is the term used when someone wrongfully obtains another person’s personal data through fraudulent or deceptive means. Identity theft involves stealing personal information such as:
- Social Security number
- bank account or credit card information
- driver’s license number
- email address and online passwords
Be extremely careful with your personal information:
- Don’t give your Social Security or credit card number over the phone to telemarketers or others who may ask for personal information for contests, great deals or other unsolicited promotions.
- Do not keep your Social Security card with you. Memorize the number and leave the card in a safe place at home.
- Memorize your bank card PIN as well and do not give it to anyone. Do not write your PIN on your bank card or keep the number in your wallet.
- Have your mail held at the post office or have a friend pick it up daily when you travel.
- Always be careful when giving your personal data to someone in a public forum. Speak quietly, check to see that no one is listening or looking over your shoulder, and don’t discard any paperwork that has personal information on it.
- Do not use public Wifi connections to access personal information such as banking websites, or pay for any online transactions or bills
- Be aware of people around you at an ATM. Make sure no one is too close or looking over your shoulder as you enter your PIN.
- Shred all statements with personal data before putting them in the trash.
- Be aware of emails that appear to be from your bank, or banks claiming to be your bank, asking for personal information, your Social Security number or your PIN. Your bank will never request such personal information via email. If you receive an email from your bank and are not sure what to do, always call your bank to ask them about the email to ensure it is a valid email from them.
- Make sure Internet sites are secure before giving your personal information.
Additional Banking Suggestions
- Be mindful of your account balances from the beginning.
- Buy items with cash to avoid Non Sufficient Fund fees.
- Use your check register and balance your checkbook regularly. An ATM receipt will not tell you how much money you have left to spend. The ATM balance is based only on the information that has been processed before 2 p.m. on the previous day. Checks that have been written and have not cleared will not be included in that balance, nor will debit card transactions that have not been forwarded to the bank for processing.
- Be sure to use a reputable bank for your financial needs.
- Be aware of loans and credit card offers with high interest rates or “special deals.” High interest rate loans are referred to by a variety of names including payday loans, cash advance loans, check advance loans, post-dated check loans or deferred deposit check loans. Whatever name they go by, they are a very bad idea because it is an extremely expensive way to obtain extra money and some people have found themselves unable to pay back the loan. Always be sure to read the fine print.
Budgeting Suggestions
- Monitor your budget carefully for the first few months.
- Try to keep your initial costs low by looking for bargains. You can often find good deals in local newspapers or through online Marketplace sites.
- Be sure to keep track of your variable and optional expenses carefully at first so you have an idea of where you can cut back if needed.
- Check your budget monthly to see if you need to adjust your spending and savings.
Don’t plan to send any money home right away. In the first few months, most of your money will be needed to set up your U.S. household. - Put some money aside for unexpected emergencies.
- Plan ahead and save for large purchases and travel expenses.
Helpful Budgeting Websites
Contact the Teacher Resources team at 1.800.952.4521 with questions on any of these topics.