Johan was out with a friend shopping, using his debit card to buy multiple items (some quite small) at various stores and then went to an ATM (not his regular bank) to withdraw some cash. His friend Brad asked him how he keeps track of all his money and potential charges that he incurs. Johan said I dont really worry about it as I am so busy that I really dont have that much time to think about it. Brad asked, Do you even know what services your account allows you and any fees you could incur?

Well, not really, Johan confessed. I can use this ATM card to access either my chequing or my high interest e-savings account. I use online banking so can always see how much is in my account just by pulling it up on the app on my phone. In fact, I can make payments direct from either account if I want via e-transfer or direct payments. If I want to use my credit card I just use my smart phone app as it is linked to my credit card."

Doesnt this make it too easy for you to overspend, asked Brad as you are basically spending money in your account without thinking?

I do find that I dont seem to have money all the time and the money in my savings account never seems to stay there for very long, Johan confessed.

A couple of weeks later, Johan received his bank e-statement, which included a couple of surprises. Oh no! he exclaimed. Withdrawing cash from my chequing account made me fall below the minimum balance for the account, so they charged me $8.50. My 50 debit card purchases resulted in more fees. And whats this? A charge of $5 for making a direct payment from my high interest e-savings account to my credit card! All those withdrawals and fees really hit me hard! The total amount of fees cost me $35. And my savings account is down to $78!

Which bank are currently you using?

Why did you choose this bank?

What is difference between chequeing and saving accounts?

What are pros and cons of a chequeing account?

What are pros and cons of a saving account?