Other Banking Services
A safety deposit box, available at most banks, is a good place to store valuable possessions such as the airline ticket for your flight home, expensive jewelry, foreign currency, and the important documents you brought with you.
A “debit card,” also known as a checking card, allows you to withdraw or deposit money to your bank account using an automatic teller machine (ATM) and to make purchases at stores that accept the card. Some debit cards carry a credit-card logo (such as Mastercard or Visa), and can be used in place of a check or credit card. Debit cards are not credit cards, however, and they can be used only to the extent that you have funds in the account to which they are linked.
Credit cards will allow you to make purchases even when you have no money immediately available. Banks and other financial institutions, department stores, and gasoline companies all issue credit cards that can be used to buy goods. You are billed every month and are required to pay at least a portion of your balance each month. If you do not pay the entire amount due, interest (or a “finance charge”) accrues on the unpaid balance. The interest rate can be quite high, particularly if you have not yet established your “credit worthiness.”
The cost of credit cards varies greatly. The annual fees and interest rates charged by some financial institutions are much higher than others. Many cards offer premiums or awards linked to the amount you spend using the card. Ask your adviser or fellow students: It really pays to shop around. Once you establish a “credit history,” of if you have significant assets, you should be able to obtain a card with a lower interest rate and little or no annual fee.
Credit cards are convenient, but unless you are careful you may be shocked when you get your monthly bill. Keep all your receipts to keep track of what you spend. Debit cards are a better solution for students who have trouble managing their debt. They are as convenient as credit cards but do not allow you to spend more than you have.
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