Banks in the United States are located in almost every neighborhood. They are safe places where money can be kept in a savings account that will pay a small amount of interest to the owner of the account. A small passbook is given to the person who opens the account, and this passbook is where a record of transactions, or deposits and withdrawals, is kept. Most banks are under the authority of the federal government, and deposits are guaranteed for up to $250,000 at most commercial banks in the US.
A person can open a checking account at a bank and will be given a book of checks and deposit slips. Checks are written to buy merchandise or to pay bills, but not every merchant accepts checks. If a person writes a check for a larger amount than they have in their checking account, then the check “bounces” and does not pay the person or business that it was written to. In this case, the bank charges the checking account owner a fee of $30 or $35 or even more. This amount is automatically taken from the checking account.
Many checking accounts come with an ATM or Automated Teller Machine card. These cards look like a credit card, but when purchases are made or bills are paid with it, the money is taken directly from the person’s checking account. A personal identity number or PIN is needed to withdraw or deposit money at an ATM. This is a secret password that should not be written on the card. If a person uses an ATM for a purchase or to pay a bill, and the amount of money is not in their checking account, the bank will either charge a fee or deny the purchase.
