ING Pay has over 70 pre-enrolled billers and merchants. It can be funded through:. ING Pay will soon launch a physical debit card. Ralf Rivas RalfRivas A sociologist by heart, a journalist by profession.
To deposit a cheque directly into an ING DIRECT account, all clients have to do is log into the ING mobile site, take a picture of the front and back of the cheque with their mobile device and enter the deposit information. The cheque has to be in Canadian dollars and issued by a Canadian bank.
This is a huge step forward for consumers, banks and the payments industry. ING is not the first Canadian bank to launch such a service. Vancouver-based credit union Westminster Savings launched a remote deposit feature on its mobile app in April that allows customers to deposit cheques using the camera on an iPhone or iPad, and other credit unions, including Meridian in Ontario and Affinity in Saskatchewan, have followed suit.
Canadian businesses and consumers write close to four million cheques on average every business day, but most of them are still physically handled multiple times as they move through the clearing and deposit system.
A checking account differs from other bank accounts in that it often allows for numerous withdrawals and unlimited deposits, whereas savings accounts sometimes limit both. Checking accounts can include commercial or business accounts, student accounts, and joint accounts , along with many other types of accounts that offer similar features.
A commercial checking account is used by businesses and is the property of the business. The business' officers and managers have signing authority on the account as authorized by the business' governing documents. Some banks offer a special free checking account for college students that will remain free until they graduate. A joint checking account is one where two or more people, usually marital partners, are both able to write checks on the account.
In exchange for liquidity , checking accounts typically do not offer high interest rates if they offer interest at all. For accounts with large balances, banks often provide a service to "sweep" the checking account. This involves withdrawing most of the excess cash in the account and investing it in overnight interest-bearing funds. At the beginning of the next business day, the funds are deposited back into the checking account along with the interest earned overnight. Offering checking accounts for minimal fees, most large commercial banks use checking accounts as loss leaders.
A loss leader is a marketing tool in which a company offers a product below its cost or market value to attract consumers. The goal of most banks is to attract consumers with free or low-cost checking accounts and then entice them to use more profitable offerings such as personal loans, mortgages, and certificates of deposit.
However, as alternative lenders such as fintech companies offer consumers an increasing number of loans, banks may have to revisit this strategy. Banks may decide, for example, to increase fees on checking accounts if they cannot sell enough profitable products to cover their losses. Because money held in checking accounts is so liquid, aggregate balances nationwide are used in the calculation of the M1 money supply.
M1 is one measure of the money supply, and it includes the sum of all transaction deposits held at depository institutions, as well as currency held by the public. M2 , another measure, includes all of the funds accounted for in M1, as well as those in savings accounts, small-denomination time deposits, and retail money market mutual fund shares.
Consumers can set up checking accounts at bank branches or through a financial institution's website. To deposit funds, account-holders can use automated teller machines ATMs , direct deposit, and over-the-counter deposits. To access their funds, they can write checks, use ATMs or use electronic debit or credit cards connected to their accounts. Advances in electronic banking have made checking accounts more convenient to use. Customers can now pay bills via electronic transfers, thus eliminating the need for writing and mailing paper checks.
They can also set up automatic payments of routine monthly expenses, and they can use smartphone apps for making deposits or transfers. Don't overlook checking account fees—there are things banks won't widely advertise to people who aren't reading the fine print, including contingent fees like overdrafts.
If you write a check or make a purchase for more than you have in your checking account, your bank may cover the difference. What many banks don't tell customers is that they'll charge you for each transaction that causes your account to use an overdraft.
But there's more. Per the account-holder agreement, many banks have provisions stating that in the event of an overdraft, transactions will be grouped in the order of their size, regardless of the order in which they occurred. Furthermore, if your account remains overdrawn, your bank may also charge you daily interest on the loan. There is a practical reason for clearing larger payments before smaller payments. Many important bills and debt payments, such as car and mortgage payments, are usually in large denominations.
The rationale is that it is better to have those payments cleared first. However, such fees are also an extremely lucrative income generator for banks. Many banks offer a service called overdraft protection for checking account-holders. This feature is essentially a line of credit that kicks in when a debit is presented to the account that it can't cover.
Overdraft protection supplies the funds, thus avoiding denial of the payment and a non-sufficient funds NSF fee. Outside of overdraft protection, you can avoid overdraft charges by choosing a checking account with no overdraft fees , or keeping money in a linked account. Some banks will forgive one to four overdraft charges in a one-year period, though you may have to call up and ask.
Chase Bank, for example, waives the fees for insufficient funds incurred on up to four business days in every month period on its Sapphire Checking and Private Client Checking accounts. While banks are traditionally thought of as generating income from the interest they charge customers to borrow money, service charges were created as a way to generate income from accounts that weren't generating enough interest revenue to cover the bank's expenses.
The bank makes up for this shortfall by charging fees when customers fail to maintain a minimum balance , write too many checks, or, as just discussed, overdraw an account.
There may be a way to get out of at least some of those fees on occasion. If you're a customer of a large bank not a small-town savings-and-loan branch , the best way to avoid paying non-recurring fees is to ask politely. Customer service reps at large banks are often authorized to overturn hundreds of dollars in charges if you merely explain the situation and ask them to cancel the charge. Just be aware that these "courtesy cancellations" are usually one-time deals.
Direct deposit allows your employer to electronically deposit your paycheck into your bank account, which makes the funds immediately available to you. Banks also benefit from this feature, as it gives them a steady flow of income to lend to customers. Because of this, many banks will provide free checking i. With an electronic funds transfer EFT , also known as a wire transfer , it's possible to have money directly transferred into your account without having to wait for a check to come in the mail.
Most banks no longer charge to make an EFT. ATMs make it convenient to access cash from your checking account or savings after hours, but it's important to be aware of fees that may be associated with their use. While you're typically in the clear when you use one of your own bank's ATMs, using an ATM from another bank could result in surcharges from both the bank that owns the ATM and your bank.
However, surcharge-free ATMs are becoming increasingly prevalent. The debit card has become a staple for anyone who uses a checking account. It provides the ease of use and portability of a major credit card without the burden of high-interest credit card bills. Many banks offer zero-liability fraud protection for debit cards to help protect against identity theft if a card is lost or stolen.
If you choose an interest-bearing checking account, be prepared to pay plenty of fees—particularly if you can't maintain a minimum balance. This minimum amount is typically the combined total of all your accounts at the bank, including checking accounts, savings accounts, and certificates of deposit.
If your balance falls below the required minimum, you'll have to pay a monthly service fee. The average monthly service fee on interest-bearing accounts increased by nearly 5. Only a handful of banks serve up free interest-bearing checking accounts with no strings attached. However, if you have a longstanding favorable relationship with your bank, you might get the fee on your interest-bearing checking account waived. A checking account can affect your credit score and credit report under certain circumstances, but most basic checking account activities—such as making deposits and withdrawals and writing checks—do not have an impact.
0コメント