Tips

1.   Direct Deposit
Consider having payments you receive on a regular basis such as pension checks and dividends deposited directly to your account.  Not only is this more convenient, as you do have a special trip to the bank, your money also starts earning interest immediately.  Many Criminals, including con artists, are aware that seniors receive their pension checks at the end of the month and direct deposits are a good crime prevention technique.

2.   Safety Deposit Boxes
Consider storing stock, bonds, jewelry and other valuables in a safety deposit box.  Not only will your valuables be safer but they will also be together in one convenient location so you will always know their exact whereabouts.

3.   Monthly Bills
Pay monthly bills such as telephone and utilities at a financial institution and pay by cash or money order rather than by check..

4.   Checks and Money Orders
Do not carry large amounts of cash-if you need to carry large amounts consider using bank drafts, money orders or checks. On printed checks, do not put your social security number; use your first initial rather than full name; use a business phone number if possible and use only the last four digits of your account number on the memo line when paying bills.

5.   Traveler’s Checks
Use traveler’s checks when vacationing.  They are usually easily negotiable at hotels, restaurants and financial institutions and can usually be replaced within 24 hours if they are lost or stolen.

6.   Credit Cards
Always sign a new credit card when you receive it.  Always destroy old cards.  Never provide any one with your credit card number unless you initiate the transaction, i.e. a telephone purchase. Shred credit card receipts before throwing them away and do not dispose of them in publicly used trash cans.

Debit Card Verses Credit Cards

When you use a debit card to make a purchase, you swipe your card through a special card reader and then enter your Personal Identification Number (PIN).  After your identity is verified electronically, the money for your purchase is automatically deducted from your bank account.  This means that the amount you spend is limited by what’s in your account.

When you use a credit card, you are actually getting a loan from a bank or other financial institution.  You sign a credit receipt and the charge appears on your next credit card bill.  If you don’t pay the bill in full, then you’ll be charged interest on the unpaid balance.

Advantages of a debit card

Debit cards are often easier to use than checks or credit cards.  They are more readily accepted than checks.  They don’t require that you get special approval from a store manager or show identification.  There are no credit card bills to pay and no interest charges.

Debit cards are secure, too.  In order to use them, you need to know your Personal Identification Number (PIN).  This makes it difficult for someone to steal your card and then make purchases with your money.  Of course, it’s critical that you guard your pin carefully.

Disadvantages of a debit card.

When you use a debit card, you must be sure that you have enough money in the bank to cover your purchase.  If a debit card purchase causes your account to drop below your required minimum balance, you any pay a penalty.  In addition a debit card may:

§    Limit your options. Since you pay for a debit card purchase on the spot, you can’t withhold payment for items that are never delivered, are defective, or were misrepresented.  You can do that with a credit card.

§     Cost you money.

§     Your debit card is like a blank check, you must guard it carefully against loss or misuse.  A thief can clear out your bank account before you know your card is missing.  Protect yourself by following a few simple rules:

Protect your debit card.  

§    Guard your PIN.
Memorize your PIN.  If you must write it down, don’t write in on your card.  Don’t even keep it with your card.  Don’t choose a PIN that is easy to figure out, like you phone number, address, or birthday.  Never give your PIN to anyone.  

§    Understand your card
Some debit cards can be used at stores and restaurants like a credit card.  The purchase you make is still deducted from your bank account, but you don’t have to provide a PIN.  Ask your bank if this is the case with your card.  If you don’t want another credit card, you can ask your bank to issue you a plain debit card that only works with a PIN.

§    Guard your receipts carefully.
Some debit card receipts only carry the last four digits of your card, making it difficult for a thief to steal your card number.  If your receipts carry your full account number, you must be very careful about where you discard them.  Don’t give thief any help to steal money from your account.

§    Contact your bank
Call and write your bank immediately if your card is lost or stolen, or if you think it is being used fraudulently.  If you report a lost or stolen card within two days, you only have to cover losses up to $250.

§    Check your bank statement.
Check it carefully and report unauthorized charges promptly.  Your liability for unauthorized purchases increases to a maximum of $500 if you make the report within 60 days after receiving your bank statement. After 60 days, your liability is unlimited.

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