Please do not disclose personal data (PII), including, but not only: your name, address, phone number, email address, social security number, account information or other confidential information. The debit card has become a staple for anyone who uses a current account. It offers the ease of use and portability of a large credit card without the burden of high-interest credit card bills. Many banks offer unclaimed protection against debit card fraud to protect against identity theft in the event of a card loss or theft. Advances in the electronic banking sector have facilitated the use of current accounts. Customers can now pay invoices via electronic transfers, so there is no longer a need to write and send paper cheques. You can also set up regular monthly spending automatic payments, and you can use smartphone apps for deposits or transfers. Direct deposit allows your employer to deposit your pay cheque into your bank account electronically, which immediately makes the money available to you. Banks also benefit from this function, as they provide a constant flow of revenue to customers. That`s why many banks offer free check controls (i.e. no minimum balance or monthly maintenance fees) when you set up a direct deposit for your account.
But there are others. In the example above, in which you made three purchases worth $25, $25 and $53, it is not only charged a fee for the last purchase. Under the account holder agreement, many banks have provisions that provide that transactions are grouped in order of their size in the event of an overdraft, regardless of the order in which they took place. This means that the bank would consolidate these transactions in the order of $53, $25, $25, a fee for each of the three transactions on the day you debited your account. If your account remains in surplus, your bank may also charge you daily interest on the loan. Many banks and credit unions offer other types of second-chance programs with limited access to the account, higher bank fees and, in many cases, no debit card. If you are a candidate for a second-chance program, make sure the bank is insured by the FDIC. If it is a credit union, it should be insured by the National Credit Union Administration (NCUA). You can avoid overdraft fees by disconnecting from overdraft coverage, choosing a current account with no overdraft fees, or keeping money in a linked account. The only credit linked to a current account could be an overdraft line offered by some banks – the bank covers overdrafts and charges you fees and interest.
With a credit card, you borrow money to make your purchases. The advantage is that you can buy now, even if you don`t have the money available easily; The downside is that at the end of the billing cycle, you pay more if you don`t pay your balance in full. Many banks offer customers free current accounts; However, credit card companies often charge an annual fee for credit card accounts. NOW accounts are essentially current accounts where you earn interest on the money you have deposited. In the case of an NOW account, the bank or credit union has the right to require a written termination of at least seven days, although this is rarely the case. If you have a check or purchase for more than you have in your current account, your bank can cover the difference.