Using a bank or credit union can streamline your financial life.  Having your paycheck directly deposited into your account can save you time and money.  Having money automatically transferred from your checking account to a savings account can help you build an emergency savings fund. Having options like online banking, bill pay, and text alerts can help you stay on top of your spending and keep you from overdrawing your account.

But accounts come with costs, commonly called fees, especially if you do not follow the rules of the account.  

To find the account that is the best fit for you, learn about the fees that are charged on various accounts. For example, if the minimum balance requirement seems higher than you can manage, look for an account that does not have one.  If the account limits the transactions per month, look for one that does not.  And be sure to explore your options for overdraft.  In general, it is best to avoid overdraft protection programs that are offered with checking accounts.  Why?  You may be charged for each transaction that they cover, and you may be charged daily interest until you pay back the amount the bank or credit union.  Consider linking your checking account to a savings account that has money in it, a credit card, or a line of credit. These will generally be less costly options than bank or credit union overdraft protection programs.

Finally, consistent recordkeeping will help you keep a positive balance in your account.   Keep track of deposits, or the money you put into your account, and withdrawls, the money you take out of your account. Examples of withdrawls include:

• Checks that you write
• Debit card transactions
• Automatic payments for bills made from your debit card or account
• ATM withdrawals

Also, be sure to keep track of fees.  You do not take them out, but they reduce your balance.

Finally, if you use your debit card to buy gas, rent a car, or stay in a hotel, there may be a hold put on money in your account.  This is done when the total is not known upfront.  Holds can last for minutes or days, depending on the purchase.  Money being held is not available for use until it is released.