What do I need to know about my checking account?
Although the government implements regulations to protect the consumer, the bank’s still finds other ways to make money. Looking for a checking account may seem very common and easy; nevertheless banks are still trying to make money off of your money. When shopping for a checking account, kept in mind that not everything is free. Free checking accounts are not always without fees. While you can’t be charged for a minimum balance with a basic checking account, you can be limited to how often you can withdraw money from ATMs, how many checks you can write in a month or how much you use your debit card. When you go over these limits, you could encounter a “fee fest”. Each bank carries their own types of checking accounts, yet your options include but are not limited to a Basic Checking, Interest-Bearing Checking, Rewards Checking, Money Marketing Checking, and a Student or Senior checking account. A useful website that compares your local bank’s services is bankrate.
Can a bank refuse to let me open a checking account?
Yes. National banks are private businesses. No Federal banking law or regulation requires a national bank to open an account.
I want to close my overdrawn checking account to avoid more overdraft fees, but the bank refuses to do so.
Generally, banks will not close accounts in overdrawn status. You may want to review your account disclosure and contact the bank for more information.
What is a garnishment?
If a creditor sues to collect a debt you owe and wins a court judgment against you, the creditor can ask the court for an order to garnish your salary, bank account, or other assets.
For example, the creditor can ask the court to order your employer to withhold some of your salary and pay it to the creditor instead of to you.
Also, a creditor can ask the court for an order instructing your bank to turn over funds you have in your bank account.