Checking Accounts
When first opening up a bank account, you may be intimidated by the various options available. Luckily, the decision is not as difficult as it may seem. To make it even easier, several banks tend to offer exclusive deals for new clients and student accounts. There are many reasons a checking account may be right for you and, hopefully, this article will provide you with the insight needed to make the right choice, ultimately helping you secure a more promising economic future.
Now, you may be asking yourself, what is a checking account? To put it simply, a checking account’s purpose is paying bills, writing checks, and making debit card purchases. In comparison, a savings account is for storing money for longer periods, as there are higher interest rates and no monthly fees. These accounts are often thought of as emergency funds, mainly serving the purpose of saving for long-term goals.
Debit cards are particularly useful for teenagers. Preloaded debit cards have a set amount of money on them, which can be increased by either parents or the user. Debit cards simply draw funds directly from a checking account. Parental controls can be applied to either of these in order to help the young person learn to budget and manage their money wisely. With a credit card, on the other hand, you’re essentially borrowing money from the bank and promising to pay it later. Payments contribute to your line of credit, which is paid in a bill, later on, giving the user more time to get the money together. But this can lead to overspending and can leave a teenager susceptible to building up debt and a poor credit score. Because the debit card takes funds from your checking account, the two choices complement each other nicely.
Prior to opening your account, there are a couple of tasks that need to be completed. Aside from being able to provide basic information such as a valid ID, you’ll need your visa if you're international and an initial deposit as well. If you’re a minor, ask your parents to sign any legal documents you’re presented with. In addition, depending on which bank and offer you choose, you may be required to pay certain fees. Many of these can be avoided by adhering to certain criteria such as having a daily minimum balance or making regular deposits. For the most part, these vary depending on your bank; however, some are universal. For example, many banks will charge a monthly service fee if certain requirements are not met.
Perhaps the most important step to consider is choosing which bank you’d like to work with. Options such as Chase, Bank of America, and Capital One all offer unique limited-time deals for new customers or students. At the moment, Chase offers a $225 coupon when opening a new checking account and setting up an initial deposit within the first 90 days. Bank of America offers a couple of different options, which include a $100 coupon for opening an account with two deposits made within the first 90 days. In addition, Capital One offers a $150 coupon as well, as long as two minimum deposits are made within the first 75 days. These banks all have similar promotional deals for student accounts, giving you even more of a reason to open an account and start learning to manage your money.
By opening a checking account, you’re keeping your money secure, yet accessible. Not only is your money safe in a bank, but it’s also insured. A checking account allows you to make regular withdrawals and provides you with a platform that enables you to initiate and make digital transfers. Getting paid, cashing checks, and paying bills are all made easier, more convenient, and cheaper, which will ultimately help you finance your freedom.
