What really has made the whole situation more difficult is the rise of the debit card. Debit cards that are attached to a checking account are so convenient to use. After all, it is so easy to make a charge on your debit card for the goods and services you need. But here is the catch that most consumers don’t know about: your debit card transaction will be honored by your bank, even if you do not have sufficient funds to cover it.
Now, this sounds like your bank is doing you a favor, but remember, when you have overdraft protection in place, the result is – ding – yet another charge to your account. These can really add up fast, putting you more in the hole. The whole situation is set up to basically invite more overdraft charges into your life.
How to Find a Bank with No Overdraft Fees
If you want to find a bank with no overdraft fees, check out these tips:
1. If you live in the U.S., make sure that the bank is FDIC-insured. This means that, even if they were to go under, your funds would still be safe.
2. Choose a no-overdraft-fee bank that allows you to sign up online.
3. Make sure the bank gives you access to a nationwide ATM network so you have ready access to your cash.
Once you find your no overdraft fee bank, you will be glad that you made the switch. The monthly savings will be noticeable right away, since you will never have to pay an overdraft fee again!
Homeowners often become very interested in the Federal Reserve Bank system. Every time the board of directors meets, mortgage interest rates are at risk.
Federal Reserve Bank
The Federal Reserve System acts as the central bank of the United States. Created in 1913, the Federal Reserve sets monetary and financial policies for the financial industry and trades currency with foreign countries. The Federal Reserve also acts as the bank for the federal government. When you send a check in with your tax return, it ends up in the Federal Reserve.
The Federal Reserve System is made up of 12 branch offices. The New York office is the primary office with other branches located across the country.
The primary job of the Federal Reserve is to manipulate fiscal policy. The goal is to fine-tune the economy to create a stable, predictable situation in which businesses can function. Wildly fluctuating economic keys, such as interest rates, can lead to chaos. In the late 1970′s, for instance, interest rates shot up into the high teens, causing a major economic slow down.
The Federal Reserve effectively controls mortgage interest rates in a unique manner. Many people mistakenly believe interest rates are actually set by the Federal Reserve. They clearly are not. Instead, the Federal Reserve directly dictates the rates at which one bank can loan money to another. Let’s take a closer look.
Every bank in the United States must hold back a percentage of its monetary assets. Put another way, the bank is forced to maintain a savings account. While this money cannot be loaned to consumers, it can be loaned to other banks. a payday loanMitchell is a student and a writer for various financial blogs. He hopes to one day run his own financial services blog
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