Taking Money Out: Withdrawals

A withdrawal is when you take money out of your bank account. Think of your bank like a digital locker; a withdrawal is simply opening that locker to grab what you need. There are two main ways to do this in person. You can visit a bank teller, who is a person working at the bank counter. You fill out a slip, show your ID, and they give you cash. Or, you can use an ATM (Automated Teller Machine), which is like a 'robot teller' that works 24/7. When you make a withdrawal, your account balance goes down because you have 'subtracted' that money from the bank's vault.

To use an ATM, you need a debit card. This plastic card connects directly to your checking account. However, a card isn't enough; you also need a PIN (Personal Identification Number). A PIN is a secret 4-digit code that acts as your digital signature. It proves to the machine that you are the owner of the card. Security Tip: Never share your PIN with anyone, and always cover the keypad with your hand when typing it in so 'shoulder surfers' can't see your code!

It is easy to get confused between a withdrawal and a purchase. A withdrawal gives you physical cash to put in your wallet. A purchase happens when you use your debit card at a store to pay for an item directly. In a purchase, the money moves digitally from your bank to the store's bank without you ever touching paper bills. Some stores even allow 'Cash Back', which is a hybrid: you buy an item and take extra cash out of your account at the same time!