0
You may be charged an overdraft fee.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What are the advantages of a current account?
you can't overdraw e.g get into dept.
Does the bank atomaticaly take money out when you overdraw your account?
First it is better to understand what is known as overdrawing. Basically this means that if you have $1 in your current account you can still write a cheque for $2 that is exceeding the actual balance! In that case your account will have minus $1 balance. This negative balance is a loan given to you by the bank. A general characteristic of a loan is that you have to pay an interest. Similarly if bank overdraw (OD) your account you must pay back that with interest. To have this credit facility, first you need to come to an agreement with bank which states how much you can overdraw your current account. Bank will consider amount of operations in your account, its tern over, your relationship with bank as well as a considerable security such as Cash, Immovable property etc. This kind of overdraft is known as "Regular Overdraft". That is how banks take money out! "Temporary Overdraft" is a short term overdraft facility. Similarly, there is another method of overdrawing. "Casual overdraft" is a overdraft which you really don't want to have an agreement with the bank but probably depend on your relationship with the bank and trust. As you can see, bank has no tangible security for casual overdraft. However, casual overdraft interest rates are much higher than a regular overdraft. TIP: If you want more information on how banks create intangible money on your account you better see BASEL II code and stories regarding this. Hope this helpful! H.W Thushara Indika from Sri Lanka)
Is bank account perosnal account?
yes bank account is personal account
Is saving account a bank account?
If you have a savings account at a bank, then it is a bank account. If you have it in another kind of institution, such as a Credit Union or Savings and Loan, then it is not a bank account, although some people use the term "bank account" loosely and apply it to any savings account anywhere.
Can you keep money deposited into your bank account by mistake?
You are responsible for any money that is present in your account. If you feel some transaction (a deposit) has happened in your account which you are not aware of, you must notify the bank of the same. If you happen to hold on to this money and it so happens that this money was being used by terrorists and they put it into your account by mistake, you will also be in trouble. So it is better if you intimate the bank reg. this.
Can a bank overdraw your account to pay their own charges?
It Depends: Yes - If you have a valid overdraft account with the bank and you currently do not have enough balance in your account to pay for bank charges No - If you do not have a valid overdraft account with the bank.
Is it possible to overdraw a checking account using a debit card?
Yes a lot of people tend to overdraw their checking account because they do not know how to balance their checkbook.
What are the advantages of a current account?
you can't overdraw e.g get into dept.
Can you withdraw money if you don't have any in your account?
Yes. It is called an "overdraw". It is the banks money, and the bank will charge you an extra fee of anywhere from 10$-40$ every time it happens.
Is it illegal to overdraw your bank account?
The answer is - It Depends. Many banks offer overdraft facility where you can actually withdraw more money than what you have in your account. In such cases - it is perfectly Legal. But, in cases where your bank hasn't offered this feature to you it is Illegal.
Can a bank legally modify your checking account without warning or your approval?
Your bank can deduct amounts from your own accounts for several reasons. If you cash a check that cannot be collected by the bank the bank will deduct the amount of the check from any of your accounts that has a balance. It can do the same if you overdraw one of your accounts. You gave the bank permission to do so when you opened your accounts. The bank can take bank fees from your account and also fees for check orders.
What is internally generated cap?
It's an automatic withdrawal from the bank or financial institution where your account is held. It generally means that you have overdrawn your account by $50 or more (different for some banks) and the bank has allowed this to take place (for example, direct debits were honoured). It can also mean an automatic payment was denied due to the bank not allowing the account to overdraw. The fee for ANZ in Australia is $6. Other banks will differ with fees.
What is internally generated cap withdrawal?
It's an automatic withdrawal from the bank or financial institution where your account is held. It generally means that you have overdrawn your account by $50 or more (different for some banks) and the bank has allowed this to take place (for example, direct debits were honoured). It can also mean an automatic payment was denied due to the bank not allowing the account to overdraw. The fee for ANZ in Australia is $6. Other banks will differ with fees.
Does the bank atomaticaly take money out when you overdraw your account?
First it is better to understand what is known as overdrawing. Basically this means that if you have $1 in your current account you can still write a cheque for $2 that is exceeding the actual balance! In that case your account will have minus $1 balance. This negative balance is a loan given to you by the bank. A general characteristic of a loan is that you have to pay an interest. Similarly if bank overdraw (OD) your account you must pay back that with interest. To have this credit facility, first you need to come to an agreement with bank which states how much you can overdraw your current account. Bank will consider amount of operations in your account, its tern over, your relationship with bank as well as a considerable security such as Cash, Immovable property etc. This kind of overdraft is known as "Regular Overdraft". That is how banks take money out! "Temporary Overdraft" is a short term overdraft facility. Similarly, there is another method of overdrawing. "Casual overdraft" is a overdraft which you really don't want to have an agreement with the bank but probably depend on your relationship with the bank and trust. As you can see, bank has no tangible security for casual overdraft. However, casual overdraft interest rates are much higher than a regular overdraft. TIP: If you want more information on how banks create intangible money on your account you better see BASEL II code and stories regarding this. Hope this helpful! H.W Thushara Indika from Sri Lanka)
Are there any fees on the debit card?
Not usually. You can only use a debit card IF there are already sufficient funds in the linked bank account to complete the transaction. Debit cards are usually linked to savings accounts (rather than a current account). You cannot overdraw on a savings account - therefore there are no fees incurred.
What happens if you do not close your bank account balance is fall than minimum?
nothing will happen you can put some more money in the bank account to resume it
How much can you overdraft a checking account?
my income tax return was to be deposited to my checking account but the account number was wrong so they[re rerouting it to my old address. I need to pay some bills but will have to wait until two weeks until my return comes in. My account is currently overdrawn and I need to know how much will the bank allow me to overdraw on my checking account.
