The first step in your financial journey is to open a checking or savings account. Selecting the right checking accounts is a great way to save money and become more financially responsible.
This post will help you open a checking or savings account. It will also explain the steps you need to take and the best bank to choose.
This may be something you already know or it could be the other way around. I hope that this article helps!
Already have a checking or savings account? It’s not too late to change to a more suitable option! To skip to the next step, click here.
Table of Contents
What is a checking account?
How do I open a checking account?
How do I choose a bank for my checking account?
What’s the difference between a bank and a credit union?
Find a bank that works for you
What is a checking account?
Opening a checking account with a financial institution such as a credit union or bank allows you to deposit and withdraw funds on a regular basis.
The first step to any financial activity is to open a checking account. This is because you will need a central place where you can access your money.
You cannot use PayPal, Venmo or write checks without a checking account.
How does a bank account work?
When you open a checking account, you deposit money in it. Say it’s $100. Now you have $100 in your account.
You can withdraw money in a few ways. Write a check, use a debit or credit card to make a purchase, use an ATM or go to your bank. Hand the teller your account number and a slip of paper with your withdrawal information.
You can deposit money in your checking account using two easy methods.
You can either set up an automatic deposit with your employer so that your paychecks are deposited directly into your checking or savings account, or you can fill out a deposit slip to deposit cash and checks at your bank.
Mobile check deposit and ATMs that are owned by your bank, where you can deposit checks or cash, are now common methods of depositing money.
Mobile deposit is becoming more and more popular. It is recommended that you choose a bank offering this service. This will be covered in greater detail in the next section.
How do I open a checking account?
It’s easy to open a checking account, it’s just a matter of choosing where you want to do it!
- Select Your Bank
Choose the bank or creditunion that you wish to use. - Visit the Bank
Visit them during business hours. No appointment required. - Speak to a Banker
Tell them that you want to open a bank account. This will usually happen at a counter or in a manager’s office.
You can ask anyone, even the bank tellers for help, and they’ll direct you to the correct person.
- You will need to have your I.D. and cash.
Cash (normally $100 for the initial deposit) and identification are required. Call ahead or visit their website to see if there are any additional items you need to bring. Also, confirm the amount of cash required to open an account. - Opening a Savings account is an option
You may be asked if you’d like to open an account for savings. Sure! Open one with your banker if you think it’s a good idea.
Many banks no longer offer high interest rates. If you’re looking for a way to achieve this, I recommend checking out some online banks. Learn more about savings accounts by reading our article.
- Order Checks
You should receive a small number of checks for free when you open a new account. It is possible that you will be asked to choose the color of the checks and the way your name is printed.
You will receive temporary checks to use in the interim until your checkbook arrives.
- You can get a debit card
You may be asked if you would like a debit card. Say yes! Debit cards are a convenient way to get to your account if you want to make a purchase or withdraw money.
You can also use it to make your banking experience faster by depositing money in an ATM, or to have a teller pull up the information on your account.
Some banks will print your debit card for you, but most likely you’ll have to wait until the mail to get it.
All debit cards come with a four-digit Personal Identification Number. When you first open an account, or receive your debit cards in the mail, you will choose a 4-digit PIN.
Do you want to know more about a debit card and the differences between it and a credit card. Visit our article about credit cards and debit cards.
- You can leave the bank with the following:
The routing number of your checking account
Temporary checks
When will you receive your debit or check card?
You can create a PIN for your debit card by following the instructions.
How to open or access a checking account online
How to Open a Checking account [The Complete Guide]
How do I choose a bank for my checking account?
It can be difficult to choose a bank for a new checking account, or even to switch banks. How do you choose the best bank when there are so many options?
What Technology Do You Need?
Save on Monthly Fees
Select Small Bank or Credit Union
You Need the Technology
Most banks will allow you to access your account via your mobile phone or online. Some banks may have certain technologies, while others don’t.
Mobile Deposit
You can deposit a check using your smartphone. Open the app of your bank, take a photo of the front and back of the cheque, enter the amount of the check and deposit the check directly into your account. You don’t need to visit the bank.
The majority of banks now offer mobile deposit. We must have mobile deposit. Choose a bank with mobile deposit if it is a must-have for you.
Transfer money online
You need to transfer money between your checking and savings accounts? Most banks offer this service on their websites or apps. It is an easy way to transfer money at your convenience.
Use ATMs to deposit cash/checks
If you are a frequent user of cash, do not trust mobile deposits, or can’t get to the bank during business hours (or don’t enjoy dealing with people), then using an ATM for cash and checks deposit may be right for you.
These ATMs are a standard feature in big banks, and smaller banks have adopted them readily.
Zelle
Zelle, a feature integrated into certain banks, allows you to send money instantly to someone else to be deposited directly into their bank account.
The service is similar to PayPal or Venmo, in that it is easy to send money to friends. However, there is no delay for the recipient to receive their funds.
Zelle is a service that allows you to pay your friends and the money will be deposited directly into their accounts. If your bank is a user of the platform, then you can sign up for it and use it free.
If you need Zelle, this could be the sole reason for choosing a larger bank. Slowly, this feature is being rolled out to smaller banks. PayPal and Venmo are also options for sending money.
Save on Monthly Fees
Don’t be misled by advertisements and commercials. Some banks charge a fee for their services, while others don’t.
Find a local bank that does not charge a monthly fee. You should be able find a local bank that doesn’t charge a monthly account fee.
Look at the big names in banking, though many will charge you a monthly fee. Compare what they have to offer with other institutions, and then decide if this is the right choice for you.
Select a Small Bank or Credit Union
The first step is to decide which features and technologies you would like your account to include.
Consider if you plan to open a business account in the future.
Consider if you will need to be able to visit your bank’s brick-and-mortar location when traveling. You may not need it, but you might.
Continue reading to learn the differences between credit unions and banks so that you can decide which one is best for you. You can choose between small and large banks if you want to.
Are you looking for an online banking option? Chime and Radius are two online banks that we recommend. Look at these two accounts and consider how they might fit into your financial situation.
What’s the difference between a bank and a credit union?
Credit unions operate as banks, but are owned by their members. Savings accounts often have no or minimal fees, and some even offer higher rates of interest.
Credit unions may not have the same level of technology. It is the most important thing to consider before you choose a credit union. They operate very much like banks.
Check twice, but almost anyone can join a credit union. Credit unions used to have a requirement of commonality among members, such as credit unions for educators. However, this requirement is mostly gone.
Are you a budding entrepreneur? You may wish to keep your personal and business accounts at the same financial institution.
While credit unions offer business checking, they are often slower to adapt to new technology and better connect to other tools like QuickBooks.
Want better technology or more branches to deposit money at? Choose a big or small bank.
Small vs Big Bank
You should choose a small bank if you:
Want to avoid monthly fees?
You don’t travel much where you have to deposit money at a branch of a bank
Zelle is not necessary if you want to use features such as mobile deposit.
How to create a simple bank account
You should choose a large bank if you:
You need to deposit cash in a bank branch (not an everyday need).
Want to access Zelle?
Find a bank that works for you
Open a checking and savings account when you open your account.
Do not listen to what commercials about bank loyalty and trust say. Don’t pay for a monthly service fee if you don’t need to.
Find a bank that does not charge monthly fees and open your account.
Check out our personal finance basics to be more prepared.
