A is for account
Before opening an account, you should have a good understanding of ATM cards, cheques and account statements.
A debit card is also called an ATM card. Anyone opening a new account receives one.
A debit card can be used to:
- make withdrawals, payments, deposits and so on at an ATM
- make purchases in a store
- consult an online account statement
Transaction fees
Each transaction made with a debit card costs money.
Fixed monthly fee plans permit a certain number of transactions per month. Additional fees may apply if the maximum number of transactions is exceeded.
Certain fees are charged when a withdrawal is made at another financial institution's ATM or a private ATM.
When making a direct payment in a store, an additional amount in cash can be withdrawn.
Financial institutions generally offer plans for young people.
Personal identification number (PIN)
A PIN is an electronic signature giving access to the account linked to the card. It identifies the cardholder and limits the risk of theft and fraudulent use of the card.
A PIN is a series of numbers (usually 4 or 5) chosen by and known only to the cardholder.
It's a private code that the cardholder should never disclose to anyone.
A cheque is a method of payment. It is written permission to withdraw a sum of money from the account of the person who issues the cheque and deposit it in the account of the person for whom the cheque is intended.
Some financial institutions charge for chequebooks.
Information appearing on a cheque
- Account information (a number identifying the financial institution plus the transit and account numbers)
- Name of the person or company receiving the payment
- Payer's signature
- Amount paid (written in letters and figures)
- Date as of which the money can be withdrawn from the payer's account
- Cheque number
- Payer's name and address (optional)
Cheque deposit
When a cheque is deposited in an account, the money is not available immediately. The financial institution may freeze the amount while it processes the cheque and makes sure that it is accepted.
When a cheque without sufficient funds (NSF) is deposited, the person who issued the cheque is charged a fee and a note is entered in his or her credit report.
An NSF cheque is a cheque issued when the payer doesn't have enough money in his or her account to cover it.
An account statement is a good tool for monitoring an account.
It contains a detailed record of each transaction.
Information appearing in an account statement
- Amount of each transaction (deposits and withdrawals)
- Transaction dates
- Transaction information (name of point of sale, location of ATM or origin of deposits and transfers)
- Balance after each transaction
- Amount of available funds
- Type and name of the account
- Activation date
- Interest rate
Additional information that may appear on a credit account statement (credit card, line of credit and so on)
- Payment due date
- Credit limit and available funds
- Date and amount of most recent payment
- Minimum required payment amount