BANKING & MONEY

Banking
Cash
Credit & Debit Cards
Safety-Deposit Boxes

Banking

Banking is a very competitive business in the United States. Banks offer many different accounts, credit cards, loans and services. You need to determine what services you need and choose the bank that will provide these to you. Because of federal regulations, all banks require a Social Security Number to open a bank account.

Argonne now requires direct deposit into a bank account for all employees. Everyone needs to have a bank account prior to the end of the first pay period after they are hired in order to be paid.

The Argonne Credit Union is on site, and is very handy for employees needing to make transactions during the working day. The ACU has agreed to waive the requirement of the Social Security Number to open an account for Argonne employees. They will however require proof that you have applied for the SSN and the bank must have the new SSN within 60 days of opening the account. Having a bank account will ease your transition to the United States very much with such things as housing and utility payments.

Your own bank, the one where you establish your checking account, will cash all checks or credit them to your account, if they are standard checks in U.S. currency with the U.S.-style magnetic-ink imprint. Businesses usually accept personal checks (drawn on local banks) if you provide appropriate identification (a driver's license and credit card). NOTE: A driver's license is the standard means of identification in this country. It may be very difficult to have personal checks accepted in local stores if you do not have one. A passport may not be accepted because it will not show a local address.

If you need to transfer substantial sums of money it is advisable to consult with your bank as to the most efficient method. Cashiers or certified checks can be obtained from a bank, but they may be difficult to cash immediately when you leave Illinois. Money orders can be pur­chased from the post office. A Foreign Draft, through your local bank, is the quickest way to send money to your home country or for someone in your country to send money to you here in the United States. It is best to have a checking account with the local bank with which you are arranging Foreign Drafts.

Cash

You will need a considerable amount of money in your first month here, not only for living expenses but also for advance deposits on apartment rental, telephone, and other utilities and for buying or renting a car. Your first paycheck will come at the end of the first month of employment and subsequent checks at the end of each month worked. You can obtain advances only for the number of days already worked during the first month of employment. In the United States many people use cash only for small purchases and services. Few people carry more than $100 with them. Larger payments are made by personal check, credit card or debit card.

The most convenient way to access your money from a home bank in the US is with the use of an Automated Teller Machine (ATM) card. ATMs can easily be found throughout the area and at the Argonne Credit Union on site. Exchange rates are often better and transaction fees lower than if using a bank. If you are using an ATM outside of your banks system there may be additional charges. Be aware of daily limits.

An alternative is to purchase U.S. travelers checks (such as Ameri­can Express or Citibank). They are well worth the small fee (usually 1%). They can be cashed at nearly all stores and banks. The best denominations are $50 or smaller because larger checks may not be accepted everywhere.

Please be aware that it is difficult to change foreign currency here. Local banks cannot do it. You must go to the International Terminal at O'Hare Airport or to one of a few large banks in the financial district of downtown Chicago.

Credit & Debit Cards

It is very helpful to have a credit card in the United States, even if you use it only as a credit reference. However, it is not easy to get one when you are here as a temporary visitor. Most issuers, including the Argonne Credit Union, require you be here at least three months and that you have a social security number. You may want to look into the possibility of getting a credit card, such as American Express, Visa, or Master Card, in your home country. You may charge purchases made in the United States to your foreign credit card, but they will be billed to your home account in your home currency. It is a good idea to start using a U.S. credit card as early in your stay here as possible, especially if you will be here for more than a few months since it is important to establish a "credit rating" which can be checked before making larger financial commitments.

Things to consider when using a Credit Card:

• When a purchase is made, the credit card user agrees to pay the card issuer, by signing a receipt with a record of the card details and indicating the amount to be paid or by entering a Personal Identification Number (PIN).
• Credit card issuers usually waive interest charges if the balance is paid in full each month, but typically will charge full interest on the entire outstanding balance from the date of each purchase if the total balance is not paid.
• &If you withdraw cash using a credit card. There is NO free credit period. In case of cash, the interest starts accumulating from day one.
• Each month, the credit card user is sent a statement indicating the purchases undertaken with the card, any outstanding fees, and the total amount owed. After receiving the statement, the cardholder may dispute any charges that he or she thinks are incorrect.
• The credit card may simply work as a form of revolving credit if the balance is paid in full each month. It may however become a complicated financial instrument with multiple balance segments each at a different interest rate.
• Interest rates can vary considerably from card to card, and the interest rate on a particular card may jump dramatically if the card user is late with a payment on that card or any other credit instrument , or even if the issuing bank decides to raise its revenue.
• When making an internet purchase, make sure you are using a secure website. The merchant will ask for additional information such as the billing address of the card and the three digit security code printed on the back of the card.

Debit/ATM Cards, issued by your bank, are also widely used. A debit card is an automated teller machine (ATM) card with a VISA or MasterCard logo on it. [VISA calls them "CheckCards" and MasterCard calls them "MasterMoney" cards.] With a debit card money is immediately drawn from your account to pay the bill. Many find this convenient, but the use of a debit card may not contribute to establishing a credit rating.

Things to remember when using a Debit card are:

• When you use the card like a credit card (with a signature, but not with a PIN), banks take a hefty fee from the merchant.
• When you use it with a PIN, like an ATM card, more and more banks are charging you a Point-of-Sale fee (POS fee) of $0.25-$1. Other banks are charging a monthly card rental fee (even if you do not use it at all) of $1-2/month.
• Never use a debit card on the Internet. It is too risky. Only use a credit card for Internet transactions. In addition to greater legal liability protection with a credit card, you have greater legal protection if goods are defective or don't arrive.
• Unlike a credit card, if your debit card is used fraudulently, the thief robs your bank account. Potentially, all your money is drained out of your account. It could take the bank 10 days or more to investigate and refund your money.

Understanding all the rules and regulations surrounding Credit and Debit cards is important so that you do not pay any unnecessary fees. Both cards have excellent uses.

Prepaid "Credit" Cards or “Gift Cards”

A prepaid credit card is not a credit card, since no credit is offered by the card issuer: the card-holder spends money which has been "stored" via a prior deposit by the card-holder or someone else. They may be issued to a specific store or may carry a credit-card brand (Visa, MasterCard, American Express or Discover) and can be used just as though it were a regular credit card.

Prepaid cards can be issued to minors (above 13) since there is no credit line involved. With prepaid credit cards you are not charged any interest but you are often charged a purchasing fee plus monthly fees after an arbitrary time period. Many other fees also usually apply to a prepaid card. Check out the rules on the back of the card or by going to the card's website.

Credit Card versus Debit Card

Credit Card Applications

Before you sign up for a credit card, you should fully understand the following terms. Note each card is different and you can get a card to suit your needs.

• Annual fee - A flat, yearly charge similar to a membership fee. Many companies offer "no annual fee" cards today, and lenders who do charge annual fees are often willing to waive them to keep your business.
• Finance charge - The dollar amount you pay to use credit. These are interest costs and cash-advance fees which are usually higher.
• Grace period - A time period, usually about 25 days, during which you can pay your credit-card bill without paying a finance charge. This does not apply if you carry a balance forward or take cash advances, only if you pay your balance in full each month.
• Annual Percentage Rate (APR) - The yearly percentage rate of the finance charge. These change regularly and are printed on each monthly statement.
• Introductory rate - A temporary , lower APR that usually lasts for about six months before converting to the normal fixed or variable rate.

Before signing up for a credit card, do some research and make sure that you get the plan that suits your needs. The US Citizens for Fair Credit Card Terms has a wonderful website which rates credit cards.

Pre-approved Credit Card Offer

Call 1-888-5-OPTOUT (1-888-567-8688) to have your name removed from direct marketing lists. You can do this online at OptOutPreScreen.com , which is the official consumer credit reporting industry opt-out website. You can also contact the individual credit bureaus by sending your request to the following addresses. Be sure to include all pertinent information, including your full name, current address, and home telephone number.

Equifax at: Equifax Inc P.O. Box 740123 Atlanta , GA   30374-0123
TransUnion at: TransUnion Name Removal Option P.O. Box 505 Woodlyn , PA 19094
Experian at: Experian Opt-Out P.O. Box 919 Allen, TZ 75013

Safety-Deposit Boxes

To protect certain documents and other valuables from loss by fire, theft, or carelessness, commercial banks can offer you the benefit of their safe-deposit vaults. Safety-deposit boxes, of almost any size, can be rented for $25 or more per year.

back to index