In this post, we’ll discuss how to open a bank account.
I opened my first bank account when I was 16 years old after I got my first job; I worked at McDonald’s. They did not have mandatory direct deposit back in the late ’80s, but I did need a place to cash my paycheck. Below are the steps I followed to open a bank account.
First, I decided on which bank I wanted to use.
Now in my hometown, there were only a few choices, so I went to a local bank. Today, you can decide between local, national, or online banks and even local, national, or online credit unions.
Some people prefer banks over credit unions while others prefer credit unions over banks. Personally, I prefer whoever gets me the most for my money. I like a high level of customer service, convenience, plenty of choices, and I need things to be quick and efficient. That is why I choose to bank with USAA.
USAA caters to military families and their specific needs and this has worked for me for the last 15 years. So find a bank or credit union that meets the specific needs that you have.
Find a bank or credit union that meets the specific needs that you have.
Decided? Okay, let’s move on!
Now, the next thing when you open a bank account is to determine which type of checking account that you want. I also recommend getting a savings account at the same time, but we’ll just go over checking accounts for now.
You would not believe the number of different checking accounts there are!! You have tons of choices! So here is what I want you to make sure that you DO have:
- An interest-earning account. Accounts used for day-to-day activities aren’t earning much, but they may earn something, so sign up for an account that does earn interest.
- A “no minimum-balance required” account. Be sure to sign up for an account that does not require you to have a daily minimum balance. If you are required to have a minimum balance and then you go below that balance, the bank will charge you a fee. And believe me, you do not want to “give away” your money to the bank by paying ridiculous fees!
- An FDIC insured account. Join a financial institution that is federally insured.
- Overdraft protection on your account. Ensure that you have overdraft protection because, once again, if you overdraw your account and you do not have overdraft protection, you will be charged a hefty fee by the bank. And we do not like fees.
- Online banking. Today most banks have online banking, be sure that the one you choose does. I do not know about you, but in 2018, I feel like it is essential to be able to access my bank online. And I need to be able to access it via my mobile device, not just my computer.
The next thing that I would recommend when you open a bank account is that you get a debit card for your account and set up online banking.
A debit card will allow you to withdraw cash from an ATM machine, it will allow you to purchase items online without using a credit card, it will allow you to shop with a card instead of carrying cash around, and just about everyone accepts a debit card these days.
I have used a debit card to even rent a car. The catch here is that there is a hold on the card for an amount larger than the purchase, but the point is, I was able to do it without having to have a credit card.
Okay, so we have gotten access to our money with a debit card, now we just need to set up online and mobile banking. Go to your bank’s website and apply for online banking. Online banking is very popular these days, so it should be on the home page as soon as you visit the site. Set it up using your username, password, and account information and you should be good to go.
After you set up online banking, be sure to go to your smartphone and add your bank’s app so that you have the ability to check your account on-the-go.
Done and done folks! That is all you need to do to open a bank account.
If you have any financial questions that you would like an answer to, please send me an email at gwen@gwendolynjuleus.com or contact me through any of my social media links!
Soon, I will be launching the ManageMoney. BuildWealth. podcast, a great resource that I think will help you “set things in order” in your financial life! Stay tuned!! Thanks so much!