How to Open Bank Accounts

Opening a bank account involves making some smart decisions about the type of accounts you need, and the number of accounts you wish to keep in good standing. Having a checking, savings or money market account can help you safely store money and even earn interest on your savings throughout the year. You'll need to understand some basic banking terms and examine your financial situation as you explore different bank account options.

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Instructions

Examine Your Financial Situation

1. Understanding the purpose and reason for a bank account can help you organize your finances better. Certain types of accounts require you to maintain a minimum balance--that means that you must have at least a certain amount of money in the bank at all times. If your account ever dips below that minimum balance, then you'll get charged a fine. Banks like to hold onto at least some of your hard-earned cash because they need it to lend to other people who want to take out loans.
   
   
   
   Some accounts charge you a monthly fee for the privilege of using their services. If you have no money to give to them, why bother paying that service charge every month? Service fees at most banks are usually fairly low, so it might be worth it for you to just keep an account open if you know that you'll at least have some money to put away some time. But it's still an expense to plan for.
   
   
   
   Your bank will most likely charge you a fee for using automated teller machines (ATMs) that don't belong to them and some will limit you to a certain number of ATM transactions per month on your bank's ATMs. If you exceed that number, you'll have to pay an additional fee at some banks. Although they're convenient, ATMs can be an expensive service.

Next: Choose the Right Bank

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References

• 5 Tips for Protecting Your Checking Account

Resources

• Online Banking Report: Bank Websites
• Citibank
• Chase

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