Orientation guide for newcomers to New Brunswick - Government of ...

Chequing, savings, and business accounts arecalled by different names at different banks.Make sure you understand what kind ofaccount you have and what they will cost.Be sure that you understand from which accountyou are taking money or using for debit cardpurchases. Some savings accounts charge a userfee every time you use a debit card.Debit cards and automatedteller machines (ATMs)All major banks offer their customers debitcards. You may use them to do bankingat machines known as automated tellermachines (ATMs) or to buy things at stores.Each bank has its own ATM. If you use a machinethat does not belong to your bank, you will becharged a fee (usually $1.50 or more).Your personal identificationnumber (PIN)Bank cards come with a personal identificationnumber (PIN) that you need to enter into anATM whenever you use your debit card. Thisis a number that you choose. It is extremelyimportant not to tell anyone your PIN.BorrowingIt is common in Canada to borrow money foritems that you cannot afford immediately.There are three ways that banks lend moneyto people: credit cards, lines of credit andloans. It is a good idea not to borrow unlessyou need to do so. Most banks will not lendmoney if your monthly payments for debtand housing are more than 40 per cent ofyour income.Credit card• there is a limit on how much you canspend using your credit card;• you are expected to pay part or all ofwhat you owe every month;• if you make regular payments on yourcredit card, you may keep using it overand over. This is called “revolving credit”;DepositingIf you make a deposit at an ATM, the bankmust confirm, after the fact, that the depositis accurately entered and is legitimate. As aresult, banks maintain the right to limit yourwithdrawals from ATMs based on depositsthat are immediately made at ATMs. Thispractice, called a “hold,” is important toremember if you intend to pay a bill basedon a deposit you have immediately madeat an ATM.60Orientation guide for newcomers to New Brunswick