What is a bank’s role in helping you manage your money? And how can you best use our services to avoid overdrawing your account?

First, let’s look at what we, as a bank, actually do for you. We’re here to provide you with a safe place to keep your money. We protect your money from anyone who might try to take what you have earned. That’s our main function, to protect your money.

Ways We Help Protect Your Money

Your checking account is one tool you can use to protect your money. We also exchange money with other banks as people make purchases from each other and lend money for big purchases like homes.

Along the way, we provide a number of tools to help you track your money—how much you put into your account, how much you take out, and where you have spent it.

Managing Your Money & Understanding Overdrafts

One key point for you is to put in more money than you take out. When you write a check or use a debit card, you’re making a promise to the seller. A check or debit card transaction is a promise that, when either reaches your bank, your bank will pay them from your account.

When there is not enough money in your account to cover that promise, that is known as bouncing a check or overdrawing your account. Many merchants won’t let you purchase from them anymore after you break a couple of those promises by writing bad checks.

For example, if Dan writes a check to StoreMart for $125, not realizing that he only has $111 in his account, he has promised them that he will give them more money than he has. When StoreMart deposits the check with their bank, their bank will contact Dan’s bank to get the promised payment.

If there is not enough money in Dan’s account to cover the promised payment, the check bounces. It bounces right back to StoreMart’s bank, who then tells StoreMart that Dan’s check was not a good promise and he could not pay enough money for his purchases.