— Business WOMEN AND MONEY Shop around for banking bargains IT IS hard, these days, to find someone who keeps her money in a sock under her mattress. But it’s almost as hard to find someone who went comparison shopping between financial institu- tions before deciding which bank or credit union she would use. Most people have enough finan- cial savy to compare the interest rates that different financial in- stitutions are offering. But when deciding where your hard-earned money matters. oo by Lisa Smedman Ree “money will go, you need to do a- _ lot’ more shopping around than that. Sheila Kilpatrick, manager of the Lynn Valley branch of the: North Shore Community Credit Union, offers these tips to those shopping for a bank account. ; First, determine whether you need a savings or a chequing ac- count, or both. As:a general rule of: thumb, ‘chequing accounts, -. which traditionally do not pay in-. _ ‘terest, should just contain enough *.:\ imoney:to pay the monthly bills. The bulk» of your money, says Kilpatrick, should be in an inter- est-earning savings account. Are you getting your _ NEWS Wednesday, fe - Friday, ‘& Sunday? - If ‘yes!, then we're doing our job. If ‘ne’ /we want to know who you are & where you are so we _¢an try to ensure that you get your if ‘ne’, pick @ up your : phone and call us. 986-1337 - Circulation Dept. 1139 Lonsdale Ave., N. Van = When comparing chequing ac- counts, look at fees. Accounts that charge a flat monthly fee are better if you write a lot of cheques, says Kilpatrick. If you don’t write many, look for a fee based on the number of cheques written. Next, decide how much time you can devote to keeping a record of your chequing account balance. Some people prefer an account which provides a detailed state- ment cach month. Others can get by without a statement. Some chequing accounts do bear interest, but at a much lower rate than that paid by a savings ac- count. With a savings account, look carefully both at when interest is calculated, and when it is paid. In- terest is usually calculated on either the daily or monthly mini- mum balance, although a few ac- counts calculate on the minimum quarterly balance, says Kilpatrick. If the amount of money in your savings account will fluctuate throughout the month, look for interest calculated on a daily basis. Accounts that calculate interest on # minimum monthly balance will be of no benefit to someone whose bank account hits rock bottom be- tween paycheques. Next, ask whether interest is paid monthly, quarterly, semi- 43 - Sunday, May 18, 1986 - North Shore News annually or annually, says Kilpatrick. The more often interest is paid, the more money your ac- count will earn as it compounds {earns interest on the interest naid). Some accounts pay a higher in- terest rate once the total deposits teach a certain figure. Ask whether this higher rate is paid on the en- tire amount in your savings ac- count, or Only on the amount by which the total exceeds that figure. Kilpatrick recommends having more than one savings account, especially if you are trying to save money for a specific purpose. Compare the cost of each finan- cial institution’s transaction fees. Ask whether transfers between ac- counts are made automatically, in. the case of an overdraft, or whether the account offers over- draft protection (also known as a “line of credit’’). If the bank or credit union of- fers an electronic banking machine, ask whether deposits made at other locations will be held for several days until the de- posit clears the machine. If you are married or living common Jaw, ask about joint ac- counts. Kilpatrick suggests that these accounts should allow you to retain the ‘‘rights of survivorship” if your partner dies. That way, the money in the account will still be available to you, instead of it being transferred into-an estate.