Archive for category: Bank Products and Services

If you’re looking to open a checking account, you may be overwhelmed by the options available to you. And each option not only has its own benefits—it also can have its own drawbacks and specific charges.

Free, basic checking accounts often offer the simplest choice, perfect for individuals new to banking or who want to simplify their account management. But even free checking accounts can have some fees associated with services or account misuse—which can add up if you aren’t careful. In this post, we’ll explore the benefits of free checking accounts, providing expert tips on how to make the most of this no-nonsense financial tool, while avoiding hidden charges.

Understanding Free Checking Accounts

Free checking accounts are simple, no-frills accounts meant for individuals who need a basic bank account for depositing funds, making purchases, and paying bills.

Free checking accounts have no monthly maintenance or service fees, as long as follow certain parameters. For most free checking accounts, this means that you have a low opening deposit and minimum balance requirement (at F&M Bank of Virginia, our Basic Checking Account has an opening deposit of $10, with a minimum balance requirement of $0).

Free checking accounts usually come with a free debit card, which you can use to make purchases and at ATMs to withdraw money, deposit money, transfer funds between accounts, or check account balances. Free checking accounts also usually have free e-statements—but may charge a small fee if you wish to have your statements mailed to your home. You can also view your e-statements, balance, and transaction history through your bank’s app or online banking portal.

Unlike premium checking accounts and money market accounts, which have higher balance requirements, free checking accounts usually don’t offer earned interest.

The True “Cost” of Free

As we mentioned above, as long as you follow basic parameters, free checking accounts can truly be free. However, there is no such thing as no-fee banking—all banks charge fees for some services or types of account misuse. That’s why it’s important to understand the fine print of your free account, to be sure you don’t accidentally rack up avoidable charges.

Common fees can include:

• ATM charges. At F&M Bank, we don’t charge fees when you use our card at other ATMs—but other banks or ATM providers may. There is no transaction fee when you use an F&M Bank ATM.
• Foreign transaction fees. If you use your debit card at ATMs or for purchases abroad, you may be charged a fee.
• Overdraft and overdraft protection fees. If you withdraw or make a payment that uses more funds than are available in your account, you could be charged a fee for each day your account is overdrawn. Overdraft protection may help you avoid some fees (like returned checks), but will still charge you for each day your account has a negative balance.
• Minimum balance fees. Some banks may have a minimum balance requirement for their free checking accounts. If you go below this balance, your account may be charged a fee or a monthly maintenance fee. F&M does not require a minimum balance.
• Account inactivity fee. If you don’t use your account for a prolonged period of time, you may be charged an inactivity fee. You will usually be notified by mail before this happens.
• Paper statement fees. Many banks today offer a number of free ways to view account statements and transactions, including online banking and mobile apps. However, charging a small monthly fee for mailed paper statements is common. At F&M Bank, our paper statement fee is $2 per month.
• Card replacement fees. If you lose your debit card, you may be charged a fee to replace it.
• Direct deposit or transaction requirement fees. Some banks require a certain number of direct deposits or monthly transactions to waive monthly fees. At F&M, we do not have any direct deposit or transaction requirements for our Basic Checking Account.
• Returned or stopped check fees. If you overdraw your account with a check, or are forced to stop a check you’ve written, you may be charged a fee for these services.
• Check ordering fees. Some accounts may come with a small amount of free checks to get you started. Once you use them up, you’ll need to order more.

Reading the details of your account can help you familiarize yourself with any potential fees, so you can reduce your out-of-pocket charges and enjoy a low-cost checking account experience.

Strategies to Avoid Fees

In addition to being aware of potential charges, there are some things you can do to help ensure that you won’t be hit with unexpected fees. Here are a few checking account tips to avoid fees.

To avoid overdraft or minimum balance fees:

• Check your balance regularly and before large purchases.
• Set up automatic transfers from your savings when your account drops below a certain threshold.
• Set up alerts to notify you when your account gets low.
• Stay on top of regular automatic payments to ensure they don’t overdraw your account.

To avoid ATM fees:

• Check out our Locations page to find an F&M branch ATM.
• Carefully read the screen at out-of-network ATMs for fee details before proceeding with your transaction—or avoid them altogether.
• Use cashback at checkout when using your debit card.

The Future of Fee-Free Banking

With recent technological advancements, banks can offer more and more offerings and account management tools—without the extra charges.

Using free digital banking, you can manage accounts efficiently and quickly, anywhere you go. Checking balances, transferring funds, or setting up alerts is simple and convenient using your bank’s mobile app or logging in to your account online. The more insights you have into your account, the easier it is to avoid incurring fees and overdraft charges.

Bank websites, with blogs, digital tools, and other financial literacy resources, allow financial institutions to provide their customers with easy access to financial educational materials. Customers can stay informed, learn tips for successful financial management, and utilize tools like mortgage calculators to help you navigate your financial goals successfully.

Need to send a payment? Online bill pay can help you send checks for free, through your banking app or online banking portal, avoiding the cost of checks and postage.

While all these perks can help you better manage your finances, it’s important to recognize that no app or website can replace the benefit of one-on-one assistance. At F&M Bank, we are proud to offer the best of both worlds: robust digital tools and dedicated, in-person service at your local brick-and-mortar branch.

Upgrade from Free Checking

Free checking is a wonderful, simple account option to facilitate your money management. But when you’re ready for an account with even more perks, there are many additional options out there.

As you upgrade from free checking, you can experience additional perks in features, including cash back, ATM fee refunds, and even interest on your balance. For instance, our Cash Back Checking Account offers cash rewards each month, with use of your debit card. And our Cash Back Plus Account also offers cash back—plus earned interest.

However, it’s important to note that with more perks, there may be more terms and conditions, including maintaining a higher minimum balance or having a certain number of transactions each month. Always be sure to read requirements to verify that it will be simple for you to meet them and avoid potential fees. To compare our accounts, their perks, and terms, check out our Compare Checking Accounts page.

Free Checking at F&M

At F&M Bank, we strive to offer banking products that meet your needs—wherever you are on your financial journey. Our Basic Checking Accounts provide a simple, free option for money management, with free online and mobile banking, free debit cards, free financial advisor consultations, and free e-statements. And when you’re ready to move on to a premium account, we have several options to choose from.

Stop by one at one of our locations in the Shenandoah Valley to learn more about our checking account choices, or open an account online today!

Are you looking for a new bank? Still trying to decide if it’s time to make a switch? There are a variety of options out there, including online-only and brick-and-mortar banks. Admittedly, we’re a bit biased, having served the Shenandoah Valley with brick-and-mortar bank offices since 1908. In this article, we’ll explain what a brick-and-mortar bank is, what an online bank is, and what the primary differences between them are. Keep reading to decide between online banks vs. brick and mortar.

What is Considered A Brick-And-Mortar Bank?

When we say brick-and-mortar bank, we mean the physical branch you probably think of when you hear “bank.” You can drive to a brick-and-mortar bank, come inside for lobby service, or use the drive-thru, all with friendly human employees to help with whatever you need.

Brick-and-mortar financial institutions come in all shapes and sizes such as community banks and credit unions, or larger regional and national banks. While they offer online and mobile banking services, brick-and-mortar banks are distinguished by their branch networks. Customers of these financial institutions can bank however they like–digitally, on the go, or in person with the tellers and loan officers at their nearest branch.

What Is Considered An Online Bank?

With “Internet banks,” there are no branches to visit because they operate exclusively online. Since they don’t have overhead costs associated with operating branches, online banks may offer lower-cost or free banking, plus higher-than-average interest rates. However, they usually have a more limited menu of bank accounts, loans, and services. And, if you need help, you

won’t be able to meet with a human employee in person. Instead, customer service is handled by phone, email or chat, and banking is done through a website or usually an app

Benefits of a Traditional Bank

Why choose a traditional, brick-and-mortar bank over an online-only financial institution? Here are the top benefits of traditional banking:

● Invested in your community because we are part of the local economy.

● The more successful our personal and business customers are, the more successful our bank is.

● Get to know the bankers and tellers at your local branch. We know your face and your name and can sit down with you for in-person assistance anytime you need it.

● Some banking services–such as cashier’s checks, money orders, notary services, and safe deposit boxes–are only available at a brick-and-mortar branch.

● It’s easy to deposit funds in whatever way is easiest for you–mobile check deposit or cash or check deposit at the branch, drive-thru, or ATM.

● Enjoy access to a large ATM network you can make fee-free withdrawals from.

● Choose from the widest variety of personal and business bank accounts, loans, and services.

Upsides of an Online Bank

Are traditional and online banks really that different? Let’s compare benefits:

● Generally charge lower or no fees for products and services.

● Many traditional banks now offer fee-free services and products, such as free checking.

● Online banking can save you time and trips to the bank.

● Most brick-and-mortar banks offer online and mobile banking apps with all of the latest features, letting you combine the benefits of both in-person and digital banking.

● Because they don’t have to pay the overhead of physical branches, online banks can offer higher interest rates for some accounts.

Downsides of an Online Bank

Are the perks of an online-only bank worth the potential downsides? We’ll let you decide…

● No physical branches to visit if you want to take out or deposit cash or get in-person help.

● Customer service is only online or over the phone, which can be frustrating at times.

● Unless the bank is connected to an ATM network that accepts cash–and you’ll usually have to go out of your way to access this ATM–you cannot make cash deposits.

● Transactions, such as deposits, may take longer to clear with an online bank.

● No extra services like document notarization, safe deposit boxes, or financial advisors.

● Must be comfortable with using the Internet and/or a mobile app. With online banking, all tasks are done online and require an app and Internet connection.

● Not connected to your local community, or to any community really.

About F&M Bank

Founded in 1908 to serve farmers and merchants in Western Virginia, F&M Bank is headquartered in the Shenandoah Valley, with a network that spans the I-81/I-64 corridor from Winchester to Waynesboro and beyond. We are committed to the success of the ag industry, small businesses, and the non-profit sector. Visit us at your nearest branch location, make an appointment with a banker, check out our digital banking options, or send us a chat message within the F&M mobile banking app.

Maybe you just got married or moved in with a long-term partner. Or you’re starting a business with other people. Perhaps you’re suddenly in a caregiver role for an aging parent or trying to figure out the easiest way to share spending money with your kid at college. These are all situations in which sharing a bank account could be helpful and convenient. However, there are also potential downsides to shared bank accounts. In this article, we’ll walk you through everything you need to know about joint bank accounts for couples and other types of relationships.

What Is A Joint Bank Account?

A joint bank account is a checking or savings account that two people share ownership of. The joint owners have equal control over and access to the account. While joint bank accounts are common among married couples, this type of account can be useful to other types of relationships as well, such as unmarried, co-habitating couples; a parent and child in college; a senior and their caregiver relative; business partners; and more.

With a joint bank account, all owners named on the account can access the funds, meaning withdraw cash, write checks, and make online bill payments and everyday purchases with a debit card. Some transactions may require both signatures. The joint accountholders also share equal responsibility for any fees or charges.

So, a basic foundation of trust and cooperation should be established before opening a joint bank account. Joint budgeting is also a good idea for a joint checking account. You may even want to create a set of rules for both accountholders to abide by.

Benefits of a Joint Bank Account

Is a joint bank account right for you? The answer will depend on your specific situation. Learn about the potential advantages of having a joint bank account to see if it could benefit your relationship.

• Couples can use a shared checking account as a way to pay household bills and expenses from pooled funds.
• Parents can have a joint account with their older teenagers or college-age kids to provide financial assistance and help them learn how to budget and manage funds responsibly.
• Seniors can add one or more of their adult children to a joint bank account to help them manage bills, everyday purchases, and other routine banking tasks.
• Having a joint account comes with certain privileges upon the death of one of the owners: “Rights of Survivorship” means all funds will pass to the surviving owners, and the account will be considered an individual account. And “Tenancy in Common” means that, if one accountholder passes away, their share of the account passes to their estate.

Downsides To a Joint Bank Account

Of course, there are some potential pitfalls that come with sharing a bank account. Review these downsides so you can determine if a joint bank account will work for you.

• Trust can be an issue–one accountholder’s spending habits affect the other, so trust may be broken in the course of sharing a bank account.
• Depending on your tax situation (self-employed, business owner, etc.), sharing a bank account can make tax time more complicated.
• Divorce can also complicated shared accounts, especially if one spouse tries to withdraw more than half of the shared funds.
• When sharing an account with a teen or young adult child, you want to set them up for future independence, not have them become too reliant and comfortable with the ease of having parents add funds to the account
• Both accountholders can view all transactions in the joint account, which takes away privacy. Even if you and your partner agree on how much discretionary spending money you each get, you may not want each other to know about every single purchase.
• Joint accounts are susceptible to paying any debts and court orders, like child support, back taxes, or garnishments

Should I Have an Individual As Well As a Joint Bank Account?

Luckily, it’s not an either/or choice between having a joint or individual account. You and your partner or child can have multiple bank accounts. For example, many couples maintain a joint account for shared household expenses, but also keep their own individual accounts for discretionary purchases. That way, your partner doesn’t need to know how many fancy coffee drinks you buy in a week. Keeping your own individual bank account also allows you to set aside money for gifts and surprises

You can always link your shared and individual accounts to make it easy to move money back and forth, while still preserving privacy and independence.

Finally, it’s not fun to think about, but if things go south in your romantic or business relationship, already having an individual account will make it easier to separate finances and assets.

How to Open a Joint Bank Account

Opening a joint checking or savings account follows the same process as opening an individual account. You just need to provide information for both the accountholders. At F&M Bank, you can conveniently open an account online or visit your nearest branch location in the Shenandoah Valley. When prompted, simply enter the additional applicant information. Before you get started, collect basic information for all account holders such as addresses, dates of birth, ID information, and Social Security numbers. During the set-up process, you can decide on alerts and other settings for one or both accountholders.

About F&M Bank

F&M Bank delivers comprehensive banking services to the Shenandoah Valley community and beyond. With local decision makers streamlining the process, our friendly team treats each customer like family. Learn more about our personal banking services, read our article on “Types of Account Ownership,” and open a new checking or savings account online.