Online banking is as common as banks themselves, but what is an online bank? Online banks offer banking products and services that help you maintain and manage your finances, such as checking and savings accounts, but without the physical locations of a traditional bank. Online banks sometimes have fewer account options, and cash deposits often…
CD vs Savings: Which Is Best for You?
Savings accounts and certificates of deposit (CD) are effective ways to help you save money and earn interest. CDs and savings accounts typically differ in interest rates and ease of access. It’s important to know the different features of each account type to find out which one works best for your savings goals. What Is…
What Is a Returned Item Fee?
A returned item fee is a term that refers to a penalty charged by a bank or any financial institution for a returned payment or bounced check due to insufficient funds (NSF) that failed to cover the transaction. A returned item fee typically ranges between $20 to $40 per instance, which may vary from bank…
What Is Overdraft Protection?
Overdraft protection is a term that refers to an optional service offered by banks to protect depositors against non-sufficient funds (NSF). For a fee, the bank will cover your financial transactions that exceed the funds in your account. Overdraft protection is an essential service if you need all your financial transactions to go through successfully….
APY vs APR: Learn the Difference
Annual percentage yield (APY) and annual percentage rate (APR) are both used to calculate interest on account balances during a one-year period. APY refers to the interest you can earn on your bank deposits and investments. APR is the interest that you must pay for borrowing money from credit accounts, such as loans, mortgages, and…
The 7 Best Ways to Earn Interest & Make Your Money Work for You
One simple way to earn interest and make your money work is to open interest-bearing deposit accounts. Whether it’s a basic savings account or an interest-earning checking account, it’s a convenient way to meet your savings goals and watch your funds grow. Since these bank accounts come in a variety of types, including certificates of…
What Is an Overdraft Fee?
An overdraft fee is a banking term that refers to the charges incurred when you don’t have enough funds in your account to cover a check, withdrawal, debit card payment, or auto-debit transaction. Overdraft fees are charged when the bank temporarily covers a financial transaction against insufficient funds, which causes your account balance to go…
What Is APY?
APY, or annual percentage yield, is a banking term used to measure how much interest you will earn on a bank account for one calendar year. APY includes the compounding interest, which is the interest paid on both principal and earnings. APY is calculated using the annual interest rate and the frequency of compounding periods…
5 Best Business Savings Accounts for 2021
Editor’s note: This is a recurring post with regularly updated account details. Business savings accounts are one of the best tools available to help you meet your savings goals while safeguarding funds. The best bank boils down to two types of accounts: online or traditional. In most cases, you’ll get the largest return on your…
What Is Commercial Banking?
Commercial banking is a banking term that refers to bank products and services specifically designed to meet the financial needs of corporations, institutions, and government clients, instead of individual clients. Commercial banking products and services include savings and checking accounts, merchant services, treasury services, commercial loans, global trade services, payroll services, and other corporate-related products….
What Is ChexSystems?
ChexSystems is a reporting agency that retains consumer banking information. However, you’ll only appear in ChexSystems if you have negative bank activity like bounced checks, overdrawn balances, and fraudulent or suspicious activity. If you’ve been reported by a banking institution or retail store to the agency, it can prevent you from opening a new bank…
5 Best Banks for Nonprofits for 2021
Editor’s note: This is a recurring post with regularly updated account details. Nonprofit businesses have their own unique financial challenges, so the last thing they need is problematic banking. Nonprofit checking accounts offer easy access, low-cost banking with features tailored to help organizations manage finances. It’s even better when the nonprofit bank commits to community…