It is the job of bank officials to appear pleasant and courteous and answer all our questions. They are trained to convince existing clients to invest in certain ventures, and coax potential customers to open accounts. However, there are some factors they are instructed to keep hidden as they are strictly considered to be “need to know”.
With each swipe, you put more money in the bank
Whether you use a debit or credit card, the bank gets money with every swipe and the merchant is directly charged for this purpose. When you see promotional credit card offers about how you get rewards or discounts after spending a particular amount within a designated time frame, you are making some quick money for the bank.
Closed checking account can cause issues
Simply closing a checking account might not be the end. At times, customers forget to switch auto-pay transactions after closing, which leads to charges being levied upon the already closed account. You’ll need to pay penalties and fees in such cases.
Bank employees and financial advisors are not the same
While bank employees can give information about investments and aid in other financial decisions, they don’t do it as financial advisors, because these designations are different, even though used interchangeably. The latter are specifically trained and have in-depth knowledge about investments. If anything goes wrong, you can’t hold bank employees accountable since they are not authorized to be financial advisors for you.
Online account information might not be correct
In the digital age, we prefer to access bank statements and other account-related data online, instead of opting for old-school methods involving pen and paper. At times the account balance might show deposits that are currently unavailable, like out-of-state checks, which takes a few days to be cleared. While using credit cards, a hold could be placed on the funds for days before you are charged by the creditor. You should know your actual balance to avoid overdraft fees or getting into trouble when you can’t get cash from the ATM during emergencies.
The Universal Default Clause (UDC)
If you use bank-issued credit cards, this clause permits your bank to scan through open credit accounts to check if you are late on any of those payments. In case they find something, they have the authority to increase the interest rate or cancel the card.