This is the fifth article in our series, Money Matters.
There are so many choices when it comes to opening a checking account. How should you choose your best option?
It depends on the balance that you have available, said Jeff Bentley, president and CEO of .
鈥淚f you make a lot of money 鈥� have a lot of cash on hand 鈥� then you want something that鈥檚 going to pay you some dividends on that. If you don鈥檛 have a lot of money in your account, be careful because a lot of institutions will advertise 0% checking where they don鈥檛 charge a fee. But if you don鈥檛 keep a minimum balance, or some other metric, then they鈥檒l end up charging you a fee.鈥�
A debit card vs. a credit card
If you use your debit card a lot, Northwest Federal will pay you back a percentage of the average balance of your checking account each month, Bentley said.
If you can keep a decent balance and use the debit card 12 times or more in a month, the credit union will pay you a percentage of your average balance.
鈥淵ou鈥檒l actually earn money on your checking account. And very few people offer that benefit,鈥� Bentley said. 鈥淎 lot of people will say they have free checking accounts, when actually you鈥檝e got minimum balances and certain things that will trip a wire, and it turns into a fee account.鈥�
He also explained why people should try to use their debit card versus a credit card for many of their monthly transactions. There is a difference between a debit card and a credit card:
- A debit card provides an easy way to access a checking account. When used, a credit union or bank withdraws the cash from your checking account immediately.
- A credit card uses the financial institution’s funds temporarily. When you use a credit card, it goes onto your credit card balance that you can pay in full or down once a month. You can opt to make a minimum payment on it and carry a balance, which typically will then incur a monthly finance charge 鈥� a percentage of what is owed.
鈥淲e don鈥檛 recommend that,鈥� Bentley said. 鈥淲e like for you to be somewhat controlled.鈥�
Another advantage of using Northwest Federal鈥檚 debit card is that it鈥檚 available for all the products on your checking account, he said.
Access to ATMs across the DMV and more
The debit card, of course, lets you access the credit union鈥檚 ATMs, of which Northwest Federal has a network of 30,000.
鈥淎 lot of people just assume that if you鈥檙e traveling on vacation and you鈥檙e in a environment where they don鈥檛 have an ATM that鈥檚 with your bank, that you鈥檙e going to pay an ATM fee,鈥� Bentley said.
But another benefit of a Northwest Federal checking account is that the expansive ATM network means you never have an ATM fee.
To read more articles and listen to the full discussions in the 草莓传媒 Money Matters series, click here.
*For credit card disclosures and rewards details, visit:聽
