There are a lot of reasons why you might be thinking about opening a bank account for the first time. If you’re about to get your first job, you’ll need a safe place to put your money. Perhaps you want to start building your credit. If so, it could be a good time to open a bank checking account.
A bank account provides lots of options for sending money or making payments. When you open an account, you will get a checking and a savings account. You’ll also receive checks and a debit card. This lets you pay for things electronically, like a credit card. With this card, you can add money to E Wallets, like Google Pay, Apple Pay, PayPal, Venmo, or Zelle. Many employers will give you the option to directly deposit your pay into your checking account. This will make taking care of your responsibilities easier.
Gather Your Documentation
If you’re interested in opening a bank account now, most banks will require some basic documentation to get started. For most US banks, you'll need your SSN and driver's license or state ID to get started. That’s about it!
Research Bank Options
When it comes to banks, there are a few things you should be aware of. Some banks charge monthly fees while some do not, some require minimum balances, while some do not. The amount of interest that a bank will pay you to keep money in your account is different between each bank. Also, when it comes to taking a loan, some banks charge different amounts of interest. Make sure to ask your bank about their interest rates and other fees that they may charge, like overdraft fees.
Bank Fees
Banks charge an overdraft fee, usually around $35, when you spend more than you have in your account. When a bank pays the overdraft amount, they add on an overdraft fee. This results in a negative balance on your account until you deposit more money in your account. See overdraft fees by bank
Credit Union vs. Bank
Another thing to consider is whether you should go with a credit union or a bank. Generally, they operate similarly but a credit union exists for the benefit of its members while a bank is for-profit. For this reason, credit unions may offer good benefits but can sometimes be lacking in online banking technology. It’s a good idea to ask your bank or credit union about their online banking apps. Good banking apps can make life easier and help you to avoid making extra trips to the bank!
Opening Your Account
It’s exciting when you’re ready to open your account! There are usually two ways to open an account. Most banks will suggest that you go into one of their local branches in-person. This is to verify your identity and issue a debit card. However, some banks and credit unions operate almost exclusively online. These institutions allow you to easily open an account online and provide apps so that you can do all your transactions through a mobile device or a web browser.
The ability to take care of things online can make banking very convenient for you. Many businesses are going cashless and touchless payments are growing. A major change in payment acceptance is happening, especially in large venues like stadiums. In the future, contactless payments are sure to grow more common.
If you made this far, congratulations! We hope these tips were helpful in opening your new bank account!
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Sources
Credit Unions vs. Banks: Which One Is the Best for You?
Financial Advice — Do’s and Don’ts
How Opening a Checking Account Affects Your Credit Score
