If there is not enough money in your account to cover a cheque you write, the cheque can “bounce.” If this happens, the bank will notify you that the cheque is “NSF.” The bank will charge you a fee when the cheque bounces.The person you wrote the cheque to will still not have been paid, and may charge you an additional fee of their own. Having a cheque bounce can hurt your credit rating (see page 101).Try to avoid writing an NSF cheque.
Overdraft protection is a way of protecting yourself in case you write a cheque for more money than you have in your account.The bank will “clear” the cheque but charge you interest on any “overdraft” amount that results.The bank will set a limit on your overdraft protection based on your credit rating.
Some people will ask for a certified cheque to prove you have enough money to cover the cheque.To certify a cheque, write it in the normal way and take it to the bank.The bank takes the money from your account immediately and stamps the cheque as “certified.” There is usually a fee for this service.
Automatic Teller Machines (ATMs) or Automatic Banking Machines (ABMs) enable people to do “selfserve banking,” such as making deposits or withdrawing money using debit cards.You can also use an ATM to transfer money from one account to another.Try to use ATMs that belong to your own financial institution. When you use another financial institution’s ATM, you usually have to pay extra fees.
To use an ATM or ABM, you will need a card from your bank.This card is called a client card or debit card.You also need a Personal Identification Number (PIN) to use the card. Keep your PIN secret so that no one else can use it without your permission. Make sure your PIN is a number you can easily recall.Without a PIN, you will not be able to use an ATM machine.
This is a new saving and investing option that people living in Canada should consider.The money you save and invest can grow tax-free.The money you deposit to a TFSA is not tax deductible.You can invest the money you have in a TFSA in mutual funds, and other investments. Learn more at DayPlanner web site – Link #103 or www.tfsa.gc.ca