• Checking Account

• Savings Account

Checking Account

A checking account allows you to deposit funds that you can then withdraw by writing checks or using a debit card.  In general, you must wait a period of one to two days after depositing a check before you can access that money in your account.  An easy solution is to cash your check and then deposit the money into you account.  This requires a visit to a teller, but your money is then instantly accessible.

Most checking accounts do not pay interest on your balance.  In fact, some banks require that you maintain a certain average monthly balance (e.g. $400) or they will charge you a fee.  Be sure to investigate this before deciding on a bank.

An important aspect of a checking account is maintaining good records.  Be sure to balance your checkbook often.  Most banks withdraw their fees on the first of the month, so you should be sure to have enough money to cover them.  Keeping good records is even more important because otherwise, you may inadvertently write bad checks (also known as 'bounced checks').  A check bounces when you have insufficient funds in your account.  If this happens, your bank will charge you a significant fine ($25.00 +), and often the business to whom you wrote the bad check will also charge you a fine.  To avoid worry, you might consider getting overdraft protection.  That is, for a minimal monthly fee (~$2.00/month), your bank will agree to extend you a line of credit if your account should ever have insufficient funds and incoming checks need to be paid. 

A Savings Account is a deposit account that pays interest but does not allow you to withdraw money by debit card or by check.  This is the best option for a student with few bills.  Savings accounts rarely charge a monthly fee.  Also, you do not risk bouncing any checks or using more money than you actually have.  Money orders (a check which cannot bounce because its face amount is paid to the bank when it is issued) are a viable alternative to a checking account.
 

TAKE NOTE!

Automatic Teller Machines (ATMs) are available for all banks in the Princeton area, however if you use a card from one bank in another bank's ATM, you will be charged a significant amount (approximately $3.00) by both your own bank and the bank that owns the ATM.  To avoid these fees, you should use your own bank's ATM.

Many banks have hidden fees.  For instance, if you have a checking account, the bank may charge you a fee if you use the assistance of a teller more than two times in a month.  Some banks will charge more than others when accepting foreign checks and money orders.  The only way to avoid these fees is to be aware, ask questions and shop around.

• Most banks are now online.  Find out how to access your accounts online, and the hassle involved with banking will decline tremendously.

For more information please see Banking Information
To see a comparison of local banks please see Banking Comparison