Opening a bank account for the first time is an exciting part of adulting! It gives you a safe place to put your money and opportunities to start building your credit. If you’re opening a bank account for the first time, here we share some general tips on how to get started.
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. It also gives you the ability to add money to E-Wallets, like Google Pay, Apple Pay, PayPal, Venmo, or Zelle.
When you start a job, your employer will likely give you the option to directly deposit your pay into your checking account This will make paying for things significantly 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 others do not. The amount of interest that a bank will pay you, for the money that you keep in your account is different from bank to bank.
Make sure to ask your bank about their interest rates and other fees that they may charge, like overdraft fees. Banks charge an overdraft fee, usually around $35, when you spend more money 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
“Make sure to ask your bank about other fees that they may charge, like overdraft fees. ”
Credit Union vs. Bank
Consider whether you should go with a credit union or a bank, there are pros and cons to both. Generally, they operate similarly but a credit union exists for the benefit of its members while a bank is for-profit.
Credit unions may offer good benefits but sometimes lack 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
Image by Drazen Zigic on Freepik
There are 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. You will still need to verify your identity this way.
We hope these tips were helpful with opening your new bank account! 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. In the future, contactless payments are sure to grow, having a bank account will make the transition easier.
Best of luck!
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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