Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, August 1, 1993 TAG: 9307300432
SECTION: DISCOVER PAGE: D-70 EDITION: METRO
SOURCE:
DATELINE: LENGTH: Medium
All interest is quoted at the annual percentage yield, which takes compounding into account. All banks must calculate this figure in the same manner. A loan or investment for a shorter term would involve a portion of the figure.
The break-even balance for interest checking is the point at which earnings exceed charges. People who cannot maintain that balance would profit by using standard checking. Most people can more readily meet average balance requirements, but a minimum is easier to track.
Banks vary as to when they begin to pay interest on deposits. Ledger balance recognizes deposits the day they are posted to an account. Collected balances include deposits only after they clear the bank on which they are drawn.
Money market savings accounts are limited to three checks and three automatic transfers a month, although the full amount can be withdrawn in person at any time. There are no such restrictions on money market checking.
New car loans are shown for four and five year terms, but banks offer other options.
Lines of consumer credit cover pre-arranged revolving credit based on signature or on equity in a home. Interest is charged only on outstanding amounts, and the lines can usually be accessed by check or by credit card.
Many banks have fees for cashing checks presented by outsiders, but they do not charge their own customers for this service. They must, however, pay valid checks drawn against accounts in their own bank.
Outside automated tellers are those owned by other banks in networks such as Most. Few banks charge for customer use of their own machines.
The chart shows only a sample of a variety of services and fees.
Information for this story and accompanying chart were compiled by Business writer Mag Poff.
by CNB