March 2019
Toolkit for Helping Youth
Select Bank Accounts
This supplement to Money Smart’s Bank Checklist provides additional
information to help you teach youth about the importance of
comparing services and fees when selecting a bank account.
MONEY SMART
Supplement for Instructors/Trainers
CONTENTS
Background ...........................................................................................................................2
Getting Started ................................................................................................................... 3
Bank Information ...............................................................................................................3
Accounts ..............................................................................................................................5
Checking Accounts .......................................................................................................6
Overdraft Programs ...................................................................................................... 9
Savings Accounts ........................................................................................................ 11
ATM Cards ................................................................................................................... 12
Debit Cards ..................................................................................................................13
Mobile/Online Banking ............................................................................................... 14
Total Monthly Costs ........................................................................................................15
Total Annual Costs ........................................................................................................... 15
Money Smart for Young People - Bank Checklist ............................................... 16
Decisions, Decisions: A Case Study ........................................................................ 17
Resources ............................................................................................................................24
Educational Resources Specic to Checking Accounts ............................................... 24
Comprehensive Financial Education Resources ...........................................................24
Account Templates and Standards ................................................................................25
Money Smart Supplement for Instructors/Trainers: Toolkit for Helping Youth Select Bank Accounts 1
Having a bank account is an important step in securing your nancial well-being. Bank
accounts keep your money safe from theft, loss, and re. Bank accounts help you to
access your paycheck quickly and easily. Using direct deposit, for example, means you
have quicker access to your money because funds that are electronically deposited are
available sooner than if you deposited a check. Having a banking relationship is almost
always cheaper than using other businesses to cash your check. A bank account provides
security. The Federal Deposit Insurance Corporation (FDIC) insures deposits up to the
maximum amount allowed by law. This means that the FDIC will return their money to
customers in the rare event a bank fails.
The Bank Checklist found in Money Smart provides an easy way to compare the costs
and services of accounts at up to three nancial institutions. The information included
in this supplement provides Money Smart instructors and trainers with additional
information to help individuals use the Bank Checklist to select safe, affordable accounts.
This supplement was designed particularly to empower young people to condently
enter into a banking relationship that meets their needs. It explains each item on the
checklist and important questions to ask. The Resources section provides links to
educational resources related to checking and savings accounts, nancial education, and
account templates and standards that also may be useful to instructors and trainers. A
case study and sample completed checklists are included at the end of the document.
We hope you nd this to be a helpful resource as you prepare to deliver training or
work with an individual one-on-one. While it was developed to complement the youth
curricula, the information can be helpful to people of all ages.
Background
Research shows that an individual is most likely to open a checking or savings account
for the rst time for a job-related reason. For example, a person will open their
rst account when they get their rst job or start a new job in order to deposit their
paycheck. These scenarios present a good opportunity for an individual to select an
account and start a banking relationship.
But if a person has never owned an account, how do they know which one is right for
them? If they have had an account in the past, but want to get a new one, what factors
should they consider? Should they open an account at the bank closest to their home,
school, or work? Should they ask their friends or parents where they bank? Selecting
an account can seem overwhelming because there are many factors to consider. The
material in this supplement will help customers, especially young adults, understand
and compare features and fees across several different accounts.
2 Money Smart Supplement for Instructors/Trainers: Toolkit for Helping Youth Select Bank Accounts
Getting Started
Before completing the Bank Checklist, encourage your audience to think about their
day-to-day lives and how they like to handle their money. You may want to ask the
following questions:
Will you receive a xed paycheck on a regular basis or will the amount and frequency
of your income vary?
Do you prefer to pay for purchases using cash, credit cards, debit cards, paper
checks, or online?
Is it your nancial goal to set aside money regularly for savings?
What do you need or want from an account based on how you plan to handle your
money?
Bank Information
The rst section of the Bank Checklist asks your audience to think about a bank in gen-
eral, even before considering the accounts and associated fees. This section helps them
think about the range of services that they might need, as well as the convenience of
the bank’s location.
Bank Name/
Account Type
_________
Bank Name/
Account Type
_________
Bank Name/
Account Type
__________
Bank
Information
Does the bank offer the services I need?
Convenient branches and ATMs?
Bank hours?
Do employees speak my language?
Is it insured by FDIC/National Credit Union Administration (NCUA)?
Does the bank have any special programs for students?
Does the bank offer the services I need?
To determine if a bank offers the services that you need, you may want to ask the
following questions:
Does the bank offer mobile or online services that allow you to check your account
balances online with a computer or phone?
Can you transfer money between your accounts? If so, how?
Can you pay your bills online with a computer or phone?
What are the costs for money orders, wire transfers, and other services?
Does the bank offer free deposits and withdrawals at a branch or ATM?
Does the bank offer direct deposit? What benets come with that?
Does the bank cash checks and accept cash deposits for the accounts you are
considering?
3
Does the bank offer a range of products you may want in the future, such as small
loans or credit cards?
Can you open both a checking and a savings account at the bank? Can you transfer
money between the accounts to help manage the balances and avoid overdraft fees,
if they apply?
Convenient branches and ATMs?
Convenience is a major factor in selecting a bank. In making your choices you can
weigh the convenience of branches and ATMs as well as any fees or costs. For example,
your questions can include:
Is there a branch or ATM near your home, school, and/or work?
Is the bank part of an ATM network that will allow you to withdraw funds free-of-
charge in convenient locations within its network?
How much does it cost to use out-of-network ATMs?
Does the account entitle you to free customer service assistance, including live
customer support in a branch, over the phone, or online?
Bank Hours?
Is the bank open when you need it to be? If not, how else can you access your account?
How can you communicate with your bank if you are unable to go into the branch while
it is open (e.g., a secure email service via the bank’s website)?
Do employees speak my language?
Does the branch have staff that can speak your preferred language? In person? On the
phone? With a TTY?
Is it insured by FDIC/NCUA?
The FDIC insures each depositor to at least $250,000 per insured bank if the bank fails.
The NCUA provides similar coverage at insured credit unions.
To verify whether the FDIC insures a specic bank or savings association:
Call the FDIC toll-free at 1-877-275-3342
Use FDIC’s “Bank Find” at http://research.fdic.gov/banknd/
To verify whether the NCUA insures a specic credit union:
Call the NCUA toll-free at 1-800-755-1030
Use NCUA’s “Research a Credit Union” at http://mapping.ncua.gov/
ResearchCreditUnion.aspx.
Does the bank have any special programs for students? Many banks offer accounts
geared to students that require less money to open and charge lower fees than their
other accounts. They may also offer special incentives to students. Incentives can be
4 Money Smart Supplement for Instructors/Trainers: Toolkit for Helping Youth Select Bank Accounts
appealing, but with all the information on cost and features, you can determine whether
a student account is right for you. For example, does the account provide key desired
features, such as mobile or online banking?
Does the bank provide access to its products and services for customers with
disabilities? If applicable, you may want to ask how the bank complies with the
Americans with Disabilities Act standards. Are the facilities barrier-free and are parking
spaces, ATMs, walkways, entrances and lobbies accessible to all? Are teller counters and
safe deposit vaults accessible? What assistance is offered to deaf and hard of hearing
customers? Does the bank accept relay calls for customer service requests? What
accommodations are provided for customers who are blind and for customers with
communication disorders? Are the bank’s mobile or online banking services accessible?
Accounts
This section of the Bank Checklist covers the requirements for opening an account at a
nancial institution and walks through the common characteristics and costs associated
with the following types of accounts and services: checking accounts, overdraft pro-
grams, savings accounts, ATM cards, debit cards, and mobile or online banking.
Bank Name/
Account Type
_________
Bank Name/
Account Type
_________
Bank Name/
Account Type
__________
Accounts Requirements for opening account?
Requirements for opening an account? The requirements to open an account can vary
from bank to bank, so checking with each bank about their specic requirements is
recommended.
If you are considering opening an account at a credit union, be sure to check their
membership requirements to ensure that you are eligible to open an account with them.
Identication. At a minimum, a bank will request your name, address, date of birth,
and social security number (SSN) or Individual Taxpayer Identication Number (ITIN).
They will also need to verify you are who you say you are, often by looking at your
photo ID (such as your school ID, state-issued ID card, driver’s license, passport, Ma-
tricula Consular, or resident alien card).
Account History Reports. Banks and credit unions likely access a consumer report
from a third-party provider, such as ChexSystems, to help decide whether to open
your account. This type of report can help the nancial institution determine if you
previously had a checking account closed because you frequently overdrew your
account or bounced a lot of checks. Some banks and credit unions allow customers to
open an account even if they have had problems in the past, unless that person has
committed fraud. For example, a bank may decline to open an account for someone
who has knowingly written a check that will overdraw the account with no intention
of paying it back or has changed the payee or amount of a check for their benet.
5
Co-owner or Custodian. Some banks require customers under a certain age to have
a custodian (i.e., a parent or guardian) co-own the account. Others will allow anyone
over a certain age to open an account in their own name without a co-owner.
Checking Accounts
Having an account at a nancial institution can make it easier (and less costly) to handle
everyday nancial needs that range from paying for groceries to depositing a paycheck,
and there are many products to choose from. However, to get the one that is best for
you, it is important to understand and compare key factors including:
Limitations of your responsibility for unauthorized transactions
Differences in fees and costs
Account access, such as debit cards, checks and mobile and online banking
Overdraft and insufcient funds fees and how the bank helps you prevent
surprise costs
Checking accounts are among the most popular banking products. Checking accounts
generally offer the safety of federal deposit insurance and protections in the event
of a fraudulent withdrawal from your account. For example, your liability for an
unauthorized transaction from your checking account is generally limited to $50 if
you notify the nancial institution right away (e.g., after you lose your debit card or
notice a problem with your account). Having an account at a federally insured nancial
institution also can be helpful if you need to borrow money at some point in the future
because you will have an existing relationship with a bank.
Checking accounts can differ with respect to their features and costs, and it is
important to consider these differences when selecting an account. Fortunately,
nancial institutions that offer checking accounts are required to make standard
disclosures about those accounts that can help you comparison shop. It is important to
shop for an affordable account and to consider all of the costs and fees that may apply.
You can ask for a paper copy of each bank’s fee schedule to help you compare the costs
of different accounts you are considering.
As the name implies, a checking account typically allows you to write checks in order
to draw on the funds in your account. Most checking accounts come with debit card
access. A debit card looks like a credit card, but unlike a credit card that allows you to
borrow money, debit cards give you access to money that is in your checking account—
for example, by making a withdrawal from an ATM machine, using the debit card to
make retail purchases, or permitting you to pay bills directly from your account. For
many customers, the convenience of debit card access is an important feature in
selecting a checking account.
Some banks offer “checkless” checking accounts. These accounts work like a
traditional checking account, but you can only access funds using a debit card or
mobile phone app or through the bank’s website—not by writing paper checks. These
types of accounts can be less costly than traditional checking accounts.
6 Money Smart Supplement for Instructors/Trainers: Toolkit for Helping Youth Select Bank Accounts
For any type of checking account, understand how will be handled and whether that
differs for your debit card, check and online recurring bill payments. Some programs
allow you to overdraw the funds in your account, but they typically charge a fee for
each overdraft, and this can be costly. Also, if you authorize a utility company, lender,
or other business to obtain funds directly from your account, and do not have enough
funds in your account to cover the withdrawal, it could get expensive. If the withdrawal
exceeds your available balance, you could be charged fees by the company trying to
get paid, the bank, or both.
Bank Name/
Account Type
_________
Bank Name/
Account Type
_________
Bank Name/
Account Type
__________
Checking
Accounts
Minimum opening balance?
Minimum monthly balance?
Fees?
Fee waivers available?
Number of withdrawals per month without a fee?
Earns interest?
Deposit hold times?
Minimum opening balance? The amount that you must initially deposit into an account
will vary by bank. Some accounts require a relatively low initial opening amount—for
example, $25.
Minimum monthly balance? Most banks require you to keep a minimum balance
in your account throughout the monthly cycle. If you don’t maintain that minimum
amount, you may be charged a fee. Knowing when your monthly account cycle begins
and ends, and the minimum balance requirements, can help you avoid fees.
Be sure to ask how the bank calculates the minimum monthly balance. Some banks
calculate the average daily balance, while others may require you to maintain the
minimum balance at all times.
The amount of the minimum balance can vary, so it is important to shop around and
compare products. Some institutions charge relatively low fees (e.g., $5) for falling be-
low the minimum balance; others will waive those fees. If you are unsure that you will
be able to keep the minimum balance, be sure to ask about the amount of the fee for
falling below the balance. This can be an important factor in your decision. On the other
hand, if you believe that you will be able to keep the minimum balance at all times, the
fee is a less important consideration.
Fees? Before opening an account, it is important to understand all fees associated with
it and what triggers a fee. Typical fees may include:
Monthly fees for maintaining the account;
Fee for falling below the minimum monthly balance;
Inactivity fee for not making a deposit into or withdrawal from the account for the
period of time specied by the bank, such as a year;
7
Overdraft fees for spending more money than you have in the account; and
Non-sufcient funds (NSF) fees, also called a “bounced check fee,” if you write a
check when there aren’t adequate funds in your account to cover the transaction.
Many accounts designed for young people either charge no or lower fees than regular
accounts, but it is still important that you know the types of fees you may be charged,
the likely amount of those fees, especially NSF and overdraft fees, and how to avoid
them if possible.
Fee waiver available? Some banks will waive fees for customers that meet certain
conditions, such as making at least one monthly direct deposit, online bill pay, or debit
card purchase. This can be a way to save money by avoiding fees.
Check with the bank to determine whether it offers fee waivers and how to qualify for
a waiver.
Number of withdrawals per month without a fee? Be sure to ask if there is a limit on
the number of free withdrawals you can make without being charged a fee and how
much it costs for each additional withdrawal.
Most banks will not charge a fee to withdraw your funds at a branch or branded ATM.
Still, there may be fees to use ATM and debit cards at other institutions’ ATMs. Some
banks allow a certain number of free withdrawals (either in person at the bank, via
an ATM, or electronically), but will charge a fee for any withdrawals made above that
amount. (This is the case with certain savings accounts.)
Earns interest? Many banks pay interest on funds held in a checking account, but the
amount of interest will vary. The amount of interest paid is a percent of the amount of
funds in the account. In the past year, the average interest paid on checking accounts
was less than one percent—a very small amount.
If you nd a checking account product that pays a considerably higher rate of interest,
check what you must do to earn the rate. For example, a special interest rate may
require 12 or more debit card transactions each month. Be sure you are likely to meet
any requirements based on how you normally handle your money.
Deposit hold times? Each nancial institution has its own policies regarding how
quickly deposited funds will be available for withdrawal. The amount of time that a
bank holds a deposit can depend on the type of deposit and your relationship with
the bank. Banks may give immediate availability for customers who cash government
checks, payroll checks, and checks drawn on the same bank, provided you are a
customer with an established relationship at the bank. Established customers may also
have access to funds from other deposits the same day or next day.
Be sure to ask to see the bank’s Funds Availability Schedule to understand how
quickly you will be able to access your funds after you deposit a check. You can even
ask a bank employee how soon you can access funds from a check you deposited.
8 Money Smart Supplement for Instructors/Trainers: Toolkit for Helping Youth Select Bank Accounts
It’s important to understand this feature to ensure you have funds available to make
payments when you need to.
Overdraft Programs
If you want to save money on account services and stay in control of your nances,
it is important to be mindful of the balance in your bank account to ensure that you
have enough money to cover any transactions. If you don’t know the amount in your
account, you may accidentally overdraw your account and be charged fees. For
example, if you elect an “overdraft” program, you will be charged a fee for the bank to
cover the overdrawn amount. You may also be charged a fee for having “insufcient
funds” (called NSF fees) in addition to or instead of the overdraft program fee. Some
types of accounts may offer opportunities to avoid or signicantly limit these fees.
You can overdraw your account by:
Making an ATM withdrawal for more money than is in your account;
Making a Point of Sale (POS) debit card purchase (such as swipe your card at a
check-out counter) for more money than is in your account;
Writing a check for more money than is in your account; or
Authorizing a vendor, such as a phone company, to withdraw money from your
account (perhaps to pay a bill) and you don’t have adequate funds to cover the
full amount.
Here are some considerations:
ATM and Point-of-Sale (POS) Debit Card Purchases. Under federal rules, bank
customers have a choice whether to “opt-in” to an overdraft program that is offered
by a bank for overdrafts caused by ATM and everyday debit card transactions.
If you do not opt-in, the bank will decline your ATM withdrawals and debit card
transactions at POS terminals if you do not have enough money in your account
to cover the withdrawal or purchase. The bank will not charge you a fee if the
transaction is declined.
If you do opt-in to the overdraft program, the bank may honor an ATM or every-
day debit card transaction that exceeds your account balance. Expect the bank to
charge you a fee to process the transaction(s). These fees can be expensive, even
exceeding the amount of the original transaction. For example, a $5 purchase
could wind up costing you $35 or more once overdraft fees are assessed.
Checks and Other Transaction Accounts Payments. A bank can choose whether to
“pay” (cover) an overdraft caused by a paper check or other transaction (e.g., direct
bill pay). If the bank covers the transaction, expect it to charge you an overdraft fee.
Even if the bank does not cover the transaction, it may charge an NSF fee and the
merchant may also charge you a returned check fee. These fees vary, but can be very
costly (e.g., $30 or more).
9
You can avoid overdraft fees and related costs and stay in control of your account using
several strategies. The rst strategy is to decline to opt-in to the overdraft feature and
to plan only to complete transactions that are covered by your balance in the bank. The
second strategy, which can be combined with the rst one, is to keep an up-to-date
record of your account balance and the scheduled transactions to come. Something as
simple as a paper-based log or an app on a smartphone can help. You could also review
your account activity frequently online through your bank’s website. In addition, many
banks offer services that send you a text or e-mail alert when your balance falls below a
certain dollar amount.
You can also avoid both overdraft and NSF fees by opening and using a “checkless”
checking account or a bank-offered prepaid card that does not permit overdrafts or
charge fees for insufcient funds.
Bank Name/
Account Type
_________
Bank Name/
Account Type
_________
Bank Name/
Account Type
__________
Overdraft
Programs
Low balance alerts offered?
Overdraft fees?
Link to a savings account to cover overdrafts?
Opt-out options?
Low-balance alerts offered? Will the bank let you know via text message or email
if your account falls below a particular balance so you can reduce the risk of being
charged a fee for overdrawing your account?
Overdraft fees? Overdraft fees vary, but they can be high (e.g., $30 or more per
overdraft). You have the choice about whether you “opt in” to the overdraft program as
described above. If you expect to have a low balance from time to time, it is important
to nd out more information about overdraft fees: Under what circumstances can you
be charged an overdraft fee? How much is the fee? Is there any way to waive the fee?
And remember: You can avoid overdraft fees either by keeping careful track of your
available balance or by choosing and using an account that does not give you the
ability to withdraw more than your available balance, such as a “checkless” checking
account.
Link to a savings account to cover overdrafts? You can also avoid overdraft fees if your
bank allows you to link your checking account to your savings account. If so, funds from
your savings account will be used to cover an overdraft from your checking account.
Ask your bank if there is a fee to transfer funds between accounts (i.e., a transfer fee).
The transfer fee may be considerably lower than an overdraft fee.
Opt-out options? Can you opt out of potentially incurring an overdraft fee for checks or
other transactions that are not covered under the overdraft opt-in rule discussed above?
10 Money Smart Supplement for Instructors/Trainers: Toolkit for Helping Youth Select Bank Accounts
Savings Accounts
A savings account is one of the simplest types of bank accounts available to
consumers, allowing them to store cash securely and potentially earn interest on the
money. While checking accounts are designed for you to use to pay bills and make
everyday purchases, savings accounts are designed to encourage savings, typically by
paying a higher interest rate than a checking account and allowing no more than six
withdrawals per month.
Checking and savings accounts have some similarities as well. For example, a savings
account is likely to have minimum opening and monthly balance requirements and may
involve fees.
Bank Name/
Account Type
_________
Bank Name/
Account Type
_________
Bank Name/
Account Type
__________
Savings
accounts
Minimum opening balance?
Minimum monthly balance?
Annual percentage yield (APY)?
Fees?
Fee waivers available?
Withdrawal limits per month?
Services available?
Minimum opening balance? The amount that you must initially deposit into an account
will vary by bank. Some accounts require a relatively low initial opening amount—for
example, $25.
Minimum monthly balance? Most banks require you to keep a minimum balance
in your account throughout the monthly cycle. If you don’t maintain that minimum
amount, you may be charged a fee. Knowing when your monthly account cycle begins
and ends, and the minimum balance requirements, can help you avoid fees.
To understand the minimum monthly balance requirements, conrm how the bank
calculates it. Some banks calculate the average daily balance, while others may require
you to maintain the minimum balance at all times.
The amount of the minimum balance can vary, so your costs might be reduced if you
shop around and compare products. Some institutions charge relatively low fees (e.g.,
$5) for falling below the minimum balance; others will waive those fees. If you are
unsure that you will be able to keep the minimum balance, ask about the size of the
fee for falling below the balance. This can be an important factor in your decision. On
the other hand, if you believe that you will be able to keep the minimum balance at all
times, the fee can be a less important consideration.
Annual percentage yield (APY)? The higher the APY, the more money you’ll earn on
funds held in your savings account.
11
Fees? Before opening an account, you can do research to understand all fees
associated with it and what triggers a fee. (An example of how to review and calculate
account fees is included at the end of the Bank Checklist.)
Typical fees include:
Monthly fees for maintaining the account;
Fee for falling below the minimum monthly balance; and
Inactivity fee.
Many accounts designed for young people either charge no or lower fees than regular
accounts, but it is still important that you know the types of fees you may be charged,
the likely amount of those fees, and how to avoid them if possible.
Fee waivers available? Some banks will waive fees for customers that meet certain
conditions, such as making at least one monthly direct deposit, online bill pay, or debit
card purchase. This can be a way to save money by avoiding fees.
Check with the bank to determine whether it offers fee waivers and what you must do
in order to qualify for a waiver.
Withdrawal limits per month? Unlike checking accounts, savings accounts are not set
up for frequent withdrawals. Be sure to nd out from your bank how many withdrawals
you can make each month without paying a fee.
Services available? Are there any additional services provided to savers, such as free-
or low-cost notary services and bank checks?
ATM Cards
An ATM card looks like a credit card, but it can only be used to make deposits and
withdrawals at an automated teller machine (ATM). The ATM card is linked to a
customer’s savings or checking account and withdrawals are deducted directly from
the linked account.
Bank Name/
Account Type
_________
Bank Name/
Account Type
_________
Bank Name/
Account Type
__________
ATM Cards
Fees?
Fee waivers available?
Location/number of ATMs?
Fees? Generally, a bank will allow you to withdraw funds at their own ATMs free of
charge. A bank may also be part of a larger, no-fee ATM network, and will allow free and
unrestricted use of in-network ATMs. If you use an ATM outside of the bank’s network
(a “foreign ATM”), however, you may be charged a fee. Banks’ policies regarding ATMs
vary, so comparing bank ATM fees, in-network locations and restrictions can help you
nd the bank that works best for you and your circumstances.
12 Money Smart Supplement for Instructors/Trainers: Toolkit for Helping Youth Select Bank Accounts
Fee waivers available? You can nd out if your bank charges fees for ATM use, and
under what circumstances, if any, your bank waives part or all of those fees.
Location/number of ATMs? When shopping for a bank, the number and location of
the bank’s ATMs can affect your access and costs. Is there a machine near your home,
work, or school? Will you be able to conveniently use an in-network ATM? If there are
no in-network machines near you, will you have to pay a fee to use an out-of-network
ATM? Consider whether the bank’s ATMs allow you to make deposits or if they only
allow you to withdraw cash.
Debit Cards
A debit card, also known as a bank or check card, can be used instead of cash to make
purchases using the funds in your bank account. Some retailers allow you to get cash
back when you make a purchase using a debit card. In many cases, debit cards can be
used to access or deposit funds at an ATM machine.
Bank Name/
Account Type
_________
Bank Name/
Account Type
_________
Bank Name/
Account Type
__________
Debit cards
Fees?
Fee waivers available?
Rebates or bonuses for use?
Location/number of ATMs?
Debit card transactions requirements or limits?
Fees? Does the bank charge you a fee when you use a debit card? How much is the fee?
Is the fee charged per transaction?
Fee waivers available? If your bank charges a fee for debit card use, under what circum-
stances, if any, will your bank waive part or all of those fees?
Rebates or bonuses for use? Some banks and merchants offer rebates and bonuses if
you use your debit card for certain transactions or at certain places of business. These
types of incentives can be appealing, but can sometimes cost you more in the end, so
ask yourself if the offer, and the purchase, is right for you.
Location/number of ATMs? Can you use your debit card at an ATM? If so, are there
ATMs in convenient locations?
Debit card transactions requirements or limits? Ask if there is a daily maximum on the
amount of money you can take out of your account using a debit card.
13
Mobile/Online Banking
More and more banks are offering mobile or online banking services. Online banking
refers to using a computer to access the bank’s website to perform transactions, such as
reviewing account balances, paying bills, or transferring funds between accounts. Mobile
banking services refers to performing these same account transactions using a smart-
phone or tablet computer to access the account via the bank’s app. These services allow
customers to access their accounts 24 hours a day from almost any location.
Bank Name/
Account Type
_________
Bank Name/
Account Type
_________
Bank Name/
Account Type
__________
Mobile/
online
banking
Is it available?
Transaction types and limits?
Fees?
Fee waivers available?
Online bill pay?
Other Information?
Is it available? If mobile or online banking services interest you, ask if they are avail-
able. If you don’t have easy access to a brick and mortar bank branch, mobile or online
banking will allow you to make transactions and check balances from your phone or
computer.
Transaction types and limits? The mobile or online services offered will vary from bank
to bank. At some banks, you may be able to move money between accounts or pay
your bills this way. You also may be able to use your smartphone to pay for goods and
services at a point of sale or to transfer money from your account to someone else’s.
In some cases, you can use your smartphone to take a photo of a check and deposit it
electronically into your account.
Fees? Does the bank charge fees for its mobile or online services? If so, how much?
Fee waivers available? If your bank charges a fee for mobile or online services, nd
out under what circumstances, if any, your bank will waive part or all of those fees. For
example, some banks do not charge for direct deposit or bill pay transactions.
Online bill pay? Does the bank allow you to pay your bills online (e.g., utility bills, credit
card bills, phone bills)? If so, is there a fee? Typically, there is not.
Other Information
There are a number of additional banking services that may be important to you. Before
opening an account, you can nd out if a particular bank offers those services and at
what cost. For example:
Does the bank offer low-cost money orders? For example, the U.S. Postal Service
offers money orders to send up to $1000 for fees ranging from $1.20 - $1.60.
14 Money Smart Supplement for Instructors/Trainers: Toolkit for Helping Youth Select Bank Accounts
Does the bank offer international wire transfers at a competitive price (e.g., $5.00 -
$20.00 depending on the country)?
Does the bank alert you when, for example, a large transaction posts to your account
or when your balance drops below a specic amount?
Does the bank offer credit-building products, such as secured credit cards or
personal loans?
Does the bank offer free monthly statements (including paper copies)?
Total Monthly Costs
Once you have identied all of the costs and fees associated with a particular bank
product, it is time to add up the estimated monthly costs of the account(s) using the
Bank Checklist. Include any standard monthly fees, as well as any fees that you expect
to incur based on how you plan to use the account (such as fees for using ATMs that
are not in the bank’s network).
Compare the total monthly costs to your monthly income and consider how these costs
might impact your monthly budget.
Total Annual Costs
Multiply the total monthly costs by 12 to determine what your annual costs are likely to
be for each account. A few dollars’ difference on a monthly basis may seem small, but
added up over the course of the year, these costs can become signicant.
Bank Name/
Account Type
_________
Bank Name/
Account Type
_________
Bank Name/
Account Type
__________
Total Monthly Costs
Total Annual Costs
15
Money Smart for Young People - Bank Checklist
Bank Checklist
*If the nancial institution is a credit union, be sure you are eligible to join.
Bank Name/
Account Type
_________
Bank Name/
Account Type
_________
Bank Name/
Account Type
__________
Bank
Information
Does the bank offer the services I need?
Convenient branches and ATMs?
Bank hours?
Do employees speak my language?
Is it insured by FDIC/National Credit Union Administration (NCUA)?
Does the bank have any special programs for students?
Accounts Requirements for opening account?
Checking
Accounts
Minimum opening balance?
Minimum monthly balance?
Fees?
Fee waivers available?
Number of withdrawals per month without a fee?
Earns interest?
Deposit hold times?
Overdraft
Programs
Low balance alerts offered?
Overdraft fees?
Link to a savings account to cover overdrafts?
Opt-out options?
Savings
accounts
Minimum opening balance?
Minimum monthly balance?
Annual percentage yield (APY)?
Fees?
Fee waivers available?
Withdrawal limits per month?
Services available?
ATM Cards
Fees?
Fee waivers available?
Location/number of ATMs?
Debit cards
Fees?
Fee waivers available?
Rebates or bonuses for use?
Location/number of ATMs?
Debit card transactions requirements or limits?
Mobile/
online
banking
Is it available?
Transaction types and limits?
Fees?
Fee waivers available?
Online bill pay?
Other Information?
Total Monthly Costs
Total Annual Costs
16 Money Smart Supplement for Instructors/Trainers: Toolkit for Helping Youth Select Bank Accounts
Decisions, Decisions: A Case Study
Getting Started: Damita and Darien, 16-year old twins, have been offered their rst
summer jobs. Damita will work at Benny’s Big Burger and Darien got a job at a local
swimming pool as a lifeguard. As a condition of employment, Darien must have his
earnings deposited directly to a checking or savings account. Damita will receive a
physical check.
Each twin’s net, or take-home, pay will be $1,000 per month. Damita wants to save to
attend culinary school when she graduates high school next year. Darien plans to pay for
soccer lessons during the summer, but would like to build a small savings fund. Damita’s
goal is to save $800 each month and spend $200. Darien’s soccer lessons will cost $500
each month. He wants to save $200 and use the remaining $300 as spending money.
Bank Information: Before starting their jobs, the twins begin their search for a nancial
institution. They remembered their math teacher showing them the Bank Checklist
from the FDIC’s Money Smart curriculum and decided to use it. They research nearby
banks and credit unions. Before an institution goes on their checklist, they make sure
that the bank or credit union provides the basic services they want. Both Damita and
Darien have smartphones and are especially interested in mobile or online banking, so
they rule out any institution that does not offer these services.
Although their preference is to bank online and via their smartphones, they make sure
that they will have convenient access to branches and bank ATMs. Damita and Darien
agree that paying fees to access their money at out-of-network (i.e., ATMs not in their
bank’s network) ATMs is something to avoid!
After looking at the locations, hours, and ATMs of local banks and credit unions, the
twins decide to review Hometown Bank, MyTown Bank, and Bank of OurTown on their
checklist. They work together to complete the checklist.
The banks being reviewed offer student accounts that require lower opening and
minimum monthly balances, and charge lower monthly maintenance fees. In addition
to lower balances and fees, Hometown Bank offers special incentives for their student
savings accounts.
Account Information. The twins learn that the banks will allow them to open savings
accounts in their own name without a co-owner. A custodian (i.e., a parent or guardian)
is required to open a checking account at Hometown Bank and MyTown Bank, while
the Bank of OurTown allows anyone over the age of 14 to open a checking account in
his/her own name. Damita and Darien both have ID cards issued by their local school
district, which satises the identication requirements of each institution.
Damita plans to deposit the full amount of her paycheck into a savings account and take
out a small amount using an ATM. She thinks a savings account will meet her needs.
Darien wants to explore both types of accounts.
17
Checking Account. The Hometown Bank and MyTown Bank require a $5 minimum
deposit to open a checking account and Bank of OurTown requires $1. The minimum
balance requirement for the Hometown Bank and MyTown Bank is also $5 and their
monthly fee for not maintaining the minimum balance is $10. Bank of OurTown’s
monthly minimum requirement is higher at $25, and has a $20 maintenance fee. Bank
of OurTown’s fee can be waived if there is at least one direct deposit made each month.
Since Darien’s payroll checks will be deposited directly to his account, he is certain that
he’ll never have to pay a fee. Damita reminds him that this is a summer job and he might
not be able to rely on the fee waiver after the summer. Since Damita plans to open a
savings account only, she needn’t worry.
All three institutions allow unlimited withdrawals from their checking accounts, and
pay interest. Bank of OurTown’s rate is slightly higher. The deposit hold times are three
days for Hometown Bank and MyTown Bank. At Bank of OurTown, payroll deposits are
immediately available and other deposits are subject to a three-day hold.
Overdraft Programs. As the twins complete the overdraft section of the Bank Checklist,
they see the importance of maintaining up-to-date account records. Hometown Bank’s
overdraft fee is $33 and MyTown Bank’s is $30. Bank of OurTown charges $28. They look
at each institution’s “opt-in” (coverage of debit card and ATM transactions when funds in
account fall short for a fee) program. Since Darien is leaning toward a checking account
with a debit card, he quickly decides that he will not opt-in when he learns that anytime
he swipes his card, the charge will be honored if he has insufcient funds to cover the
charge and he will be assessed an NSF fee.
If they write a check for more money than is in their account, the bank is likely to charge
an NSF fee. And, they may be charged a “bounced check” fee from the payee for whom
they wrote the check. To manage their accounts, they decide that they will take advantage
of the low-balance text alerts and the ability to transfer money between their individual
savings and checking accounts offered at each institution.
Savings. Damita and Darien nd that they can open a savings account with a minimum
deposit of $10 at Hometown Bank, and $5 at MyTown Bank, and that Bank of OurTown
does not have a required minimum opening balance. Damita is interested in learning
more about Hometown Bank’s youth savings accounts, which offers an initial deposit
match of up to $25 and another $50 when the balance reaches $100. After all, she has
$35 saved from gifts. If she chooses this account, she will have $60 and be well on her
way to getting another $50. She sees the money growing already! The minimum monthly
balances are also low: $10 at Hometown Bank, $5 at MyTown Bank, and $0 at Bank of
OurTown. Hometown Bank’s interest rate is higher than the other two at .50% APY. Each
institution charges $5 if the account balance drops below the stated minimum.
ATM, Debit Cards, and Mobile or online Banking. Free in-network ATMs are easily
accessible for all three institutions. The fees for out-of-network ATMs range from $2 to
$4 per transaction and cannot be waived. No-fee debit cards are also available from all
three institutions. If the twins use their debit cards at a merchant, they can get cash back
without incurring a fee, and avoid going to an ATM. Each nancial institution caps debit
card transactions at $200 per day for student accounts.
18 Money Smart Supplement for Instructors/Trainers: Toolkit for Helping Youth Select Bank Accounts
Since Damita and Darien only include nancial institutions that offer mobile or online
banking on their Bank Checklist, all three institutions offer online bill payment, mobile
check deposits, and the ability to check balances for no fees. Being able to take a picture
of her check and deposit it into her account is especially important to Damita. She
doesn’t want to spend her Saturday morning going to a bank to deposit a check.
Making a Choice Based on Best and Worst Case Scenarios. After they complete the Bank
Checklist, the twins add up the “best-case” monthly and annual costs of maintaining
both a checking and savings account at each of the institutions. Assuming they always
meet the minimum balance requirements and use only in-network ATMs, they will be
able to take advantage of each of the bank’s savings and checking accounts for free.
Damita and Darien also understand that sometimes the unexpected happens, so they
look at some “worst-case” scenarios before they make their nal selections. They include
all monthly fees and two out-of-network (used an ATM not in the bank’s network) ATMs
fees each month. The fees increase to as much as $360 per year. Then, they decide to add
two NSF fees to their review.
Annual Cost
Hometown
Bank
MyTown
Bank
Bank of
OurTown
No Fees – Best Case (See page 22.) $0 $0 $0
Monthly Fees (See page 23.) $180 $180 $264
Monthly Fees incurred and with 2 monthly out-
of-network ATM fees (See page 24.)
$252 $228 $360
Monthly Fees with 2 NSF and 2 monthly out-of-
network fees (See page 25.)
$318 $288 $416
After looking at the best- and worst-case scenarios, the twins realize two things. First,
shopping for a nancial relationship is personal. There is no one-size-ts-all account.
Second, by calculating several scenarios—from the best-case to the worst-case—they
have a better appreciation of how their choices, such as using an out-of-network ATM
and maintaining accurate records, affect the cost to maintain an account.
Damita decides that opening a savings account at Hometown Bank is ideal. She will
deposit her check via mobile deposit and keep a careful watch on the number of
withdrawals each month. She is condent that she’ll be able to stay within the bank’s
guidelines which reect the federal regulation that allows no more than six monthly
withdrawals from a savings account. And, the offer of $75 in matching funds is too good
to pass up.
Darien decides that he will open both a checking and savings account at Bank of
OurTown. Now that he has a good understanding of the fees, he will be very careful
to avoid them. He will have his payroll deposited to the checking account and transfer
funds to his savings account online immediately after he is paid to be sure he makes his
savings goal. Tracking balances will be important and he will use the mobile app to help
avoid fees.
19
Bank Checklist - Best Case Scenario
1
*If the nancial institution is a credit union, be sure you are eligible to join.
Bank Name/ Account
Type
Hometown Bank
Bank Name/ Account
Type
MyTown Bank
Bank Name/ Account
Type
Bank of Our Town
Bank
Information
Does the bank offer the services I need? Yes Yes Yes
Convenient branches and ATMs? Good Excellent Excellent
Bank hours? 8-5 (Sat 9-1) 9-6 9-5
Do employees speak my language? Yes Yes Yes
Is it insured by FDIC/National Credit Union Administration (NCUA)? Yes Yes Yes
Does the bank have any special programs for students? Yes Yes Yes
Accounts Requirements for opening account? Custodial Custodial Non-Custodial
Checking
Accounts
Minimum opening balance? 5 5 1
Minimum monthly balance? 5 5 25
Fees? 10 10 20
Fee waivers available? Yes No Yes
Number of withdrawals per month without a fee? Unlimited Unlimited Unlimited
Earns interest? .10% .10% .30%
Deposit hold times? 3 days 3 days
Payroll – 0 days
Other – 3 days
Overdraft
Programs
Low balance alerts offered? Yes Yes Yes
Overdraft fees? 33 30 28
Link to a savings account to cover overdrafts? Yes Yes Yes
Opt-out options? Yes Yes Yes
Savings
accounts
Minimum opening balance? 10 5 0
Minimum monthly balance? 10 5 0
Annual percentage yield (APY)? .50% .10% .10%
Fees? $5 $5 $2
Fee waivers available? Yes Yes Yes
Withdrawal limits per month? 6 6 6
Services available? Yes Yes Yes
ATM Cards
Fees? $0/$3 $0/$2 $0/$4
Fee waivers available? Yes Yes Yes
Location/number of ATMs? Good
Excellent Excellent
Debit cards
Fees? None None None
Fee waivers available? NA NA NA
Rebates or bonuses for use? Limited Limited Limited
Location/number of ATMs? Good Excellent Excellent
Debit card transactions requirements or limits? $200 Daily $200 Daily $200 Daily
Mobile/
online
banking
Is it available? Yes Yes Yes
Transaction types and limits? Mobile Deposit Mobile Deposit None
Fees? None None None
Fee waivers available? NA NA NA
Online bill pay? Yes Yes Yes
Other Information? $25/$50 match
Total Monthly Costs 0 0 0
Total Annual Costs 0 0 0
1
Fees are stated on a monthly basis
20 Money Smart Supplement for Instructors/Trainers: Toolkit for Helping Youth Select Bank Accounts
Bank Checklist - Monthly Fees Scenario
*If the nancial institution is a credit union, be sure you are eligible to join.
Bank Name/
Account Type
Hometown Bank
Bank Name/
Account Type
MyTown Bank
Bank Name/
Account Type
Bank of Our Town
Bank
Information
Does the bank offer the services I need? Yes Yes Yes
Convenient branches and ATMs? Good Excellent Excellent
Bank hours? 8-5 (Sat 9-1) 9-6 9-5
Do employees speak my language? Yes Yes Yes
Is it insured by FDIC/National Credit Union Administration (NCUA)? Yes Yes Yes
Does the bank have any special programs for students? Yes Yes Yes
Accounts Requirements for opening account? Custodial Custodial Non-Custodial
Checking
Accounts
Minimum opening balance? 5 5 1
Minimum monthly balance? 5 5 25
Fees? 10 10 20
Fee waivers available? Yes No Yes
Number of withdrawals per month without a fee? Unlimited Unlimited Unlimited
Earns interest? .10% .10% .30%
Deposit hold times? 3 days 3 days
Payroll – 0 days
Other – 3 days
Overdraft
Programs
Low balance alerts offered? Yes Yes Yes
Overdraft fees? 33 30 28
Link to a savings account to cover overdrafts? Yes Yes Yes
Opt-out options? Yes Yes Yes
Savings
accounts
Minimum opening balance? 10 5 0
Minimum monthly balance? 10 5 0
Annual percentage yield (APY)? .50% .10% .10%
Fees? $5 $5 $2
Fee waivers available? Yes Yes Yes
Withdrawal limits per month? 6 6 6
Services available? Yes Yes Yes
ATM Cards
Fees? $0/$3 $0/$2 $0/$4
Fee waivers available? Yes Yes Yes
Location/number of ATMs? Good Excellent
Excellent
Debit cards
Fees? None None None
Fee waivers available? NA NA NA
Rebates or bonuses for use? Limited Limited Limited
Location/number of ATMs? Good Excellent Excellent
Debit card transactions requirements or limits? $200 Daily $200 Daily $200 Daily
Mobile/
online
banking
Is it available? Yes Yes Yes
Transaction types and limits? Mobile Deposit Mobile Deposit None
Fees? None None None
Fee waivers available? NA NA NA
Online bill pay? Yes Yes Yes
Other Information? $25/$50 match
Total Monthly Costs 15 15 22
Total Annual Costs 180 180 264
21
Bank Checklist - Monthly Fees with ATM Charges Scenario
*If the nancial institution is a credit union, be sure you are eligible to join.
Bank Name/
Account Type
Hometown Bank
Bank Name/
Account Type
MyTown Bank
Bank Name/
Account Type
Bank of Our Town
Bank
Information
Does the bank offer the services I need? Yes Yes Yes
Convenient branches and ATMs? Good Excellent Excellent
Bank hours? 8-5 (Sat 9-1) 9-6 9-5
Do employees speak my language? Yes Yes Yes
Is it insured by FDIC/National Credit Union Administration (NCUA)? Yes Yes Yes
Does the bank have any special programs for students? Yes Yes Yes
Accounts Requirements for opening account? Custodial Custodial Non-Custodial
Checking
Accounts
Minimum opening balance? 5 5 1
Minimum monthly balance? 5 5 25
Fees? 10 10 20
Fee waivers available? Yes No Yes
Number of withdrawals per month without a fee? Unlimited Unlimited Unlimited
Earns interest? .10% .10% .30%
Deposit hold times? 3 days 3 days
Payroll – 0 days
Other – 3 days
Overdraft
Programs
Low balance alerts offered? Yes Yes Yes
Overdraft fees? 33 30 28
Link to a savings account to cover overdrafts? Yes Yes Yes
Opt-out options? Yes Yes Yes
Savings
accounts
Minimum opening balance? 10 5 0
Minimum monthly balance? 10 5 0
Annual percentage yield (APY)? .50% .10% .10%
Fees? $5 $5 $2
Fee waivers available? Yes Yes Yes
Withdrawal limits per month? 6 6 6
Services available? Yes Yes Yes
ATM Cards
Fees? $0/$3 $0/$2 $0/$4
Fee waivers available? Yes Yes Yes
Location/number of ATMs? Good Excellent
Excellent
Debit cards
Fees? None None None
Fee waivers available? NA NA NA
Rebates or bonuses for use? Limited Limited Limited
Location/number of ATMs? Good Excellent Excellent
Debit card transactions requirements or limits? $200 Daily $200 Daily $200 Daily
Mobile/
online
banking
Is it available? Yes Yes Yes
Transaction types and limits? Mobile Deposit Mobile Deposit None
Fees? None None None
Fee waivers available? NA NA NA
Online bill pay? Yes Yes Yes
Other Information? $25/$50 match
Total Monthly Costs 21 19 30
Total Annual Costs 252 228 360
22 Money Smart Supplement for Instructors/Trainers: Toolkit for Helping Youth Select Bank Accounts
Bank Checklist - Monthly Fees with ATM Charges Scenario
and 2 Annual NSF Charges
*If the nancial institution is a credit union, be sure you are eligible to join.
Bank Name/
Account Type
Hometown Bank
Bank Name/
Account Type
MyTown Bank
Bank Name/
Account Type
Bank of Our Town
Bank
Information
Does the bank offer the services I need? Yes Yes Yes
Convenient branches and ATMs? Good Excellent Excellent
Bank hours? 8-5 (Sat 9-1) 9-6 9-5
Do employees speak my language? Yes Yes Yes
Is it insured by FDIC/National Credit Union Administration (NCUA)? Yes Yes Yes
Does the bank have any special programs for students? Yes Yes Yes
Accounts Requirements for opening account? Custodial Custodial Non-Custodial
Checking
Accounts
Minimum opening balance? 5 5 1
Minimum monthly balance? 5 5 25
Fees? 10 10 20
Fee waivers available? Yes No Yes
Number of withdrawals per month without a fee? Unlimited Unlimited Unlimited
Earns interest? .10% .10% .30%
Deposit hold times? 3 days 3 days
Payroll – 0 days
Other – 3 days
Overdraft
Programs
Low balance alerts offered? Yes Yes Yes
Overdraft fees? 33 30 28
Link to a savings account to cover overdrafts? Yes Yes Yes
Opt-out options? Yes Yes Yes
Savings
accounts
Minimum opening balance? 10 5 0
Minimum monthly balance? 10 5 0
Annual percentage yield (APY)? .50% .10% .10%
Fees? $5 $5 $2
Fee waivers available? Yes Yes Yes
Withdrawal limits per month? 6 6 6
Services available? Yes Yes Yes
ATM Cards
Fees? $0/$3 $0/$2 $0/$4
Fee waivers available? Yes Yes Yes
Location/number of ATMs?
Good Excellent Excellent
Debit cards
Fees? None None None
Fee waivers available? NA NA NA
Rebates or bonuses for use? Limited Limited Limited
Location/number of ATMs? Good Excellent Excellent
Debit card transactions requirements or limits? $200 Daily $200 Daily $200 Daily
Mobile/
online
banking
Is it available? Yes Yes Yes
Transaction types and limits? Mobile Deposit Mobile Deposit None
Fees? None None None
Fee waivers available? NA NA NA
Online bill pay? Yes Yes Yes
Other Information? $25/$50 match
Total Monthly Costs 21 19 30
Total Annual Costs 252+66=318 228+60=288 360+56=416
23
Resources
There are a number of free resources to help consumers select and maintain safe and
low-cost accounts, including:
Educational Resources Specic to Checking Accounts
Money Smart ’s Bank Checklist provides a list of questions that a person can use
to help select an account that meets their needs. You can nd the checklist in the
Money Smart curricula and in this supplement.
CFPB’s “Consumer Guide to Selecting a Lower-Risk Account” provides tips for
nding and choosing a checking or prepaid account.
Guidance on how to avoid costly overdrafts and fees includes:
FDIC’s “Your Guide to Preventing and Managing Overdraft Fees”
FDIC Consumer News includes practical guidance on how to become a smarter, safer
user of nancial services. Articles include:
“Checking Accounts: More Questions to Ask”
“What’s the Right Account for Your Everyday Banking Needs?”
Having trouble opening or managing accounts?
“Have You Bounced Yourself Out of a Checking Account?” (from FDIC
Consumer News)
“You’ve Been Turned Down for a Checking or Savings Account. Now What?” (from
FDIC Consumer News)
“Protecting Yourself from Overdraft and Bounced-check Fees” (from the Federal
Reserve Board of Governors)
“Consumer Guide to Checking Account Denials” (from the Consumer Financial
Protection Bureau (CFPB))
Comprehensive Financial Education Resources
FDIC’s Money Smart – Educational resources to help people – from those just
starting out, just starting over, or who are somewhere in between – learn how
to create a positive banking relationship and boost their money skills. Curricula
are available for all ages and in formats to teach to others and for consumers to
complete on their own using a computer.
MyMoney.GOV – A one-stop resource for nancial education material provided by
more than 20 Federal entities. The site includes MyMoney Five, the ve key building
blocks for managing and growing your money.
24 Money Smart Supplement for Instructors/Trainers: Toolkit for Helping Youth Select Bank Accounts
Account Templates and Standards
FDIC Model Safe Accounts Template – This template provides insured institutions
with guidelines for offering cost-effective transactional and savings accounts that are
safe and affordable for consumers.
Cities for Financial Empowerment Fund (CFE) Bank On National Account Standards
– Identies critical product features for appropriate bank or credit union accounts,
making it easier for Bank On coalitions to connect consumers to accounts that meet
their needs.
CFPB’s Safe Student Account Toolkit helps colleges and universities select col-
lege-sponsored nancial accounts to meet their students’ needs.
25
www.fdic.gov/moneysmart
FDIC-019-2019
