Test your knowledge about banking! What is a trust checking account and how do you open one? What happens when your account goes negative? How can you deposit a personal check from another person into your account? For quick answers to these pressing questions, learn more from Alex, your banking expert.
Question: What is a trust checking account and how do you open it? – Jessica from Austin, Texas
Answer: A trust checking account is used so the trustee can manage the trust’s funds, pay bills, and distribute funds to its beneficiaries. In order to open a trust account, first contact the bank to make sure they can do it. Trust checking accounts are specialized accounts that not all financial institutions offer. Second, have all the trustee(s) present with two forms of identification that are valid. Only the trustee(s) of the trust are able to open a trust checking account. Finally, bring the original trust agreement that is complete and signed. Trusts can be arranged in many different ways. The trust agreement provides a lot of information that the banker will need to open the account like who are the trustees and successor trustees, what powers do they have, what type of trust it is, who are the beneficiaries, and more. It generally takes an hour or two to open a trust checking account so plan accordingly.
Question: What fees do I get when my account goes negative? – Kyle from Boise, Idaho
Answer: Banks generally charge an overdraft fee (usually around $30 to $35 per item). This occurs when the bank pays for an item, whether by check, ATM withdrawal, debit card transaction or other electronic means, which causes your account to be overdrawn. Another fee banks generally charge is a return item fee for non-sufficient funds (which is also around $30 to $35 per item). In this case, the bank makes the decision to return the item because it would cause your account to either be overdrawn or more overdrawn. Finally, banks can charge a continuous overdraft charge. That means they will charge you an additional fee if your account remains overdrawn for a certain amount of time (normally 4 to 7 business days). This fee is also around $30 to $35 per incidence and can occur multiple times until your account has a positive balance. For more information, read your bank’s fee disclosure. Banks are required to provide it whenever you open an account, but you can also pick it up at your local branch or view it online through the bank’s website.
Question: How can I deposit my daughter’s checks in to my checking account? – Cindy from Reno, Nevada
Answer: If your daughter is eighteen years old or older, the bank will not deposit her check unless she is either on your account as a joint owner or she is physically present at the branch and signs the check over to you. For the latter, on the back of the check, where the endorsement line is, your daughter will need to write “Pay to the order of (your name)” followed with her signature and then finally yours. If your daughter is under the age of eighteen, all you have to do is write “For minor” on the endorsement line and underneath that you will endorse the check.
For your specific questions about banking, contact your banking expert, Alex, at: email@example.com
Alex is starting his 15th year in the banking industry. He has worked for such notable banks as Bank of America, US Bank, and Chase. Alex has his bachelor’s degree in Business Economic from the University of California Riverside.