It is possible to manage your finances without a bank account, but it can be difficult, particularly in the event of a pandemic. It doesn't matter if you started your first job, went abroad to study, or received your economic impact payment weeks earlier—you can't select the quicker delivery option of direct installments into your bank account. The solution to all of these is to have a bank account. To simply track your finances and make appropriate savings, you might want to think about creating an account.
Opening your first bank account can seem like a difficult task. You have a lot of options when it comes to selecting the bank, the kind of account you require, and the deals they have. It will be easier if you take into account these criteria, though, and opening your first bank account will be a breeze.
Where Should My Bank Account Be Opened?
In contrast to the past, there are numerous ways to open a bank account these days. You receive lots of options, even if you find banks daunting or have previously had trouble opening an account. The three most popular options are credit unions, internet banks, and physical banks; however, how can you choose the right account for your needs?
Conventional Banks
These banks range from large national chains found in American cities to smaller regional banks specializing in particular states. If you want a large network of fee-free ATMs and prefer to visit a branch in person, a brick-and-mortar bank is a great option for you.
You can get all the standard services from these banks, including credit cards, loans, checking and savings accounts, and other financial goods. Because of the growing competition, a lot of them will even provide you with a free checking account.
Thus, before opening an account, make sure to research the most recent offers, monthly account maintenance fees, and other information.
Online Banks
Although they typically don't have physical locations, online banks are a terrific option if you're looking for the cheapest bank accounts with the best interest rates. You might discover that an online bank provides what you require if you don't have time to visit a branch or if you prefer handling your money digitally online. Covering everything from fee-free accounts with no minimum balance restrictions to mobile check deposits and ATM fees that are waived.
Which Account Type Is Best for Me?
A savings account and a checking account are not the same. Savings accounts enable you to save money, whilst checking accounts are designed for regular purchases. Thus, choosing where to start your account and what kind of account you require might go hand in hand.
This is the moment to examine the financial products offered by your chosen financial institution so that you can identify the ideal fit.
You can use that information to select the ideal account if you want to open a certain kind of account with specified characteristics. Additionally, you should open a checking account and, in certain situations, a savings account if this is your first time creating a bank account.
Checking Account
Simply put, a checking account serves as a launchpad for your finances and is also known as a bank account. Direct deposits are a way for you to get your payments, much like your paycheck. Additionally, you can use your debit card while shopping or send payments straight from your account for your monthly bills like rent, electricity, and groceries.
For starters, many banks will provide you with a free checking account. To avoid monthly fees, some can demand a minimum monthly amount or direct payroll deposit. You can take advantage of truly free checking accounts and no-strings-attached policies from other institutions. With so many alternatives for checking accounts, you must read through all of the account terms and conditions, including any fees, before opening an account.
Savings Account
It could be a wise decision to open a savings account in addition to your checking account since it will enable you to prepare for bigger expenses like a down payment on a home or a car. It will also help you accumulate money for an emergency fund.
Savings accounts allow you to make smaller withdrawals, which helps you save money. You can transfer a specific amount of money from your checking account to your savings account regularly by simply automating the process.
In contrast to a traditional savings account, you may be eligible for higher interest rates if you choose an online savings account at any online bank.