Understanding and using banks

ATM cards

These days, there are more automated teller machines (ATMs) than phones booths. It seems these days that even bars and restaurants even have ATMs. If you have never used one, you are a rare bird my friend. If you always find yourself going over budget, you may find that you are using these devices too much.

When you open a checking or savings account with a bank, you will almost certainly be asked if you would like an ATM card attached to the account. If you say yes, you typically fill out a simple form and a card that looks like exactly like a credit card will come to you in the mail within a week or two. This card, along with a password number (PIN – for personal identification number), can be used at virtually any ATM machine in the country (and many other countries for that matter) to access your account and money. To do this, you simply stick your card in the ATM and follow the directions. You get the cash you requested (as long as the funds are available) and you get a receipt and you are on your way. Be careful of out of network or bank sharing fees. If you are using another bank’s ATM or an ATM from a separate network, there are typically fees involved. Be sure ahead of time.

The card can also be used like a credit card at any place that accepts Visa or MasterCard. As long as you have a check card that is. See your bank for details. In this case, you simply present your card at the time of sale, like you would use a regular credit card, and the purchase id deducted from your account. There typically are not fees involved with these types of purchases so this is really convenient. When you use your ATM or check card, there are times when you will need to use your PIN and other times when you will simply sign you name like a regular credit card. Be certain that you understand the terms of these types of transactions with you bank before to utilize the card in this capacity. The easiest way to tell the difference between an ATM card and a check card is the Visa logo. A check card has it an ATM will not.

There typically is not a separate monthly fee involved in operating the card itself, just in certain cases when you are out of network or at another bank’s ATM machine. Again, be aware of the terms ahead of time. Nothing is worse than going over budget from ATM fees.

For those of you one a tight budget, ATM cards are best fro using as a convenient way to access your weekly cash allowance each week. This will save you a trip inside the bank. Many times you will have a machine that is free of charge even closer to your house than your bank – making for an even bigger convenience.

If you mismanage your ATM usage, ATMs will drain your account with a blink of an eye. Do not let the convenience spend your money, be responsible and stick to your budget if you have to.

Many times, people for get to enter their ATM and check card purchases into their check book registers and the account can overdraw easily this way. Again, be responsible. If there are two of you on the account and two cards are out there, communicate!

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