Some banks charge a fee for certain actions or if the account holder does not meet certain requirements.


Examples of fees that are charged by a bank are:

• Account fee (may also be called a service fee or maintenance fee) - a fee that is charged to keep the account open. This fee is typically charged monthly. Sometimes this fee is waived for maintaining a minimum balance or setting up direct deposit.
• ATM fee - a fee that is charged when a transaction is made at an ATM. This fee is typically charged every time an ATM is used, but it is often waived for that bank's account holders.
• Overdraft fee - a fee charged for making a withdrawal greater than the account balance.

Some benefits of a checking account are:

• The money in the account is insured by the federal government.
• A canceled check can be used as proof of payment, so there is a record of the transaction.

A credit card is a small plastic card issued by a financial institution which can be used to make purchases. The amount charged on the credit card is borrowed by the cardholder from the financial institution. The cardholder is responsible for paying the money back. If the money is not paid back immediately, the cardholder is typically charged interest.

A debit card is a small plastic card issued by a bank to an account holder which can be used for electronic transactions, such as purchases and ATM transactions.
When a payment is made with a debit card, the money comes from the cardholder's bank account.