In Using your bank accounts, you’ll learn how your new accounts can make managing your money easy and convenient.
Once your checking or savings account is open, you’ll probably have lots of options for how to put money in, how to make deposits, and for taking money out, or making withdrawals.
If you have more than one account with the same financial institution, be sure to ask them about convenient ways to transfer funds between your accounts.
Each time you move your money in or out of your account, it’s called making a transaction. When funds are moved by computer, rather than by cash or check, it’s called an Electronic Funds Transfer, or EFT.
Another great option many financial institutions now offer is online banking. This service allows you to handle many banking activities over the Internet, including paying your bills. And some banks are starting to offer mobile banking. This service gives you the convenience of using a mobile device to check on your accounts, for example, sending a text message from your cell phone to find out your current account balance.
Once your account is open, there are several ways to move your money. Ask your bank what they offer.
Check recent transactions and available balance
One example of an Electronic Funds Transfer is direct deposit. That’s when money, such as a paycheck or Social Security check, is electronically transferred directly into your account. This way you receive the funds even faster and more safely than with a paper check. You’ll receive proof of deposit from your bank for all direct deposits.
By setting up direct deposit, you’ll have timely access to your paycheck or other income on payday. Most employers and government agencies offer direct deposit.
… depending on the merchant
At many banks you can set up automatic deposits from your checking to your savings account. It can be easier to save more, and more quickly, when it’s automatic. You may also have the option of automatic payments. This can help ensure that your regular monthly bills are always paid on time.
International remittance, also called global remittance, is a type of Electronic Funds Transfer. Let’s say you have family members who live outside of the United States. This service allows you to quickly and easily transfer funds to them from your account. Ask your bank if they offer this service.
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