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Here are some questions we have about banking and money:

  1. What is the difference between a credit union and a bank?

A Credit Union is member owned, whereas a bank is owned by stock holders. When you open a savings at a Credit Union and deposit the minimum amount required you automatically become an owner. In a bank environment your money is invested into stocks which is traded and income is generated for stock holders.

2. How do the banks transfer money between branches?
Usually, a contract between a courier service and the financial institution is signed. The courier then brings coins, dollars, and anything else that needs to be transported to the other branches.

3. Why do we get interest in a savings account? How much interest do you get?
The Credit Union gives earned interest to savings accounts because the money you deposited allows us to turn around and make loans to other members. These loans generate income, because of the interest we charge on the loan. The money generated from the interest on loans helps the Credit Union to pay for its operating costs, education for our members, and other activities. In order to have you deposit money into your account so we have money to make loans, we pay you an interest rate. Our current interest rate on savings is .60%. Please keep in mind that we have much better products that serve the same purpose and you get a much better return. For example: IRA's, CD's, and other saving opportunities.

4. How do electronic checks work?
You may find that different stores, gas stations, etc...are taking your paper check running it through a machine and giving the paper check back to your parent. The reason for this is because normally it can take 5-10 business days to get the paper check deposited into the stores financial institution, which runs it through their clearing house, which sends it to the person's bank/credit union who wrote the check. Because of this long process many vendors or stores did not receive their money, because of bad checks, and other situations. With the new way of banking, the electronic checks are much quicker. It is computer software that goes through via the internet and immediately hits the account. It takes approximately 24 hours.

5. Why do people copy money?

What happens if you get caught?

How much money is in the ATM machine?

How does an ATM work?

How does the machine know how much money comes out?

10.If you write a check and you don't have enough money, what happens?
The place you wrote the check out to, will send it to your financial institution, if there is not enough money, you will be charged a $25.00 fee from us, the check will be sent back to the place you originally wrote it out to. They have a choice to send it up to 3 times. Each time you will get charged from us $25.00. If it still doesn't clear the place will charge you a fee for the bad check. So, if you write a check for $3.00 and you have no money in your account, that check could cost you $75.00 for sure and whatever the place you wrote it to charges you. It is a very expensive mistake, that is why balancing your checkbook is so important.

How do they know which debit card comes from which company?
In the computer software there is codes and identifiers to help with the transactions that are happening. It is all apart of technology and this is how they make sure it goes to and comes out of the right place.

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