Opening and maintaining a checking or savings account is something everyone does when starting their financial journey! Understanding what your financial goals and picking out the right account for you is vital when managing your finances.
Knowing how to find the best checking or savings account is important so be sure to keep reading below!
 |
 |
Where to Open Your Account
There are several options when it comes to where you want to open an account. Generally most people open checking or savings accounts with their local banks or credit union. There are also fintech companies that offer checking accounts, these companies design the digital experience while partnered banks hold the actual money.
Depending on what type of account you want, this may influence where you open your account as not all institutions offer the same types of accounts and features!
Types of Checking Accounts
As mentioned above there are a variety of account types and features:
Personal Checking:
This is the most common type of account, you are able to access your money in a variety of ways such as: ATMS, bank tellers, or mobile banking! Generally you will get physical checks in addition to a debit card with the account.
Online Only Checking:
While they function in a similar fashion as a personal checking account, these accounts are only available online as the name suggests. Access is all online. These accounts can offer more in terms of perks since they cost less for banks, so savings are then trickled down to their consumers.
Challenger Bank Account:
Challenger Bank accounts is one of the newer types of checking accounts you can open. Fintech companies control the digital experience while partnered banks control your money and assets. These types of accounts provide low fees and more advanced digital features.
Reward Checking Account:
This account is unique in the fact that you can earn cash back on your debit card swipes or provide another type of reward. This is not the most common type of account.
Interest Bearing Checking Account:
Interest Bearing checking accounts pay interest on the money you hold in your account so that you make a small return. However, there are usually requirements to earn the APY or to avoid account fees.
Student Checking Account:
Essentially a checking account with much lower fees for those who are still enrolled in school. This account provides a variety of options including waving ATM fees and other bonuses.
Joint Checking Account:
This is considered a traditional checking account with one important difference, two people hold the account. Those with a close relationship may consider opening this type of account, but there are some risks.
Features to Consider
Checking accounts can provide a variety of features when you open an account such as:
- Insurance
- Minimum Deposit Requirement
- Account Fees
- APY
- Mobile Features
- Automated Deposits and Withdrawals
- Debit Cards
- Overdraft Protection
- ATM Fee Study
- ATMs
- Cutting Edge Features
These features can help you pursue your individual financial goals, so be sure to know what you want in terms of your financial needs and what features may benefit you the most.
Previously Closed Accounts
If you have had previous checking accounts closed, then you may have been blacklisted by ChexSystems. They are a service that checks whose checking accounts were involuntarily closed.
For those who have been so called blacklisted, a second chance account may be the option for you. Second-chance checking accounts can help you rebuild your savings in a high-yield account or sign up for online bill pay. Many banks and credit unions even bump you up to a regular checking account after one year of good behavior.
Second-chance accounts can help you access the banking system, though you will probably have to pay higher-than-normal fees or maintain a minimum balance.
Checking Account Opening Bonuses
Banks and Credit Unions will generally offer generous account opening bonuses. These bonuses can help consumers make final decisions between banks or credit unions.
While sign up bonuses are not the most significant factor when it comes to opening an account however so bonus amounts may be higher than the other so be sure to look into what you need the most.
Conclusion
Checking accounts can provide a wide range of features and account types. Understanding what you need in terms of financial features is incredibly important when it comes to knowing what kind of checking account you would most benefit your financial goals.
Hopefully after reading this you understand how to open an account! Be sure to do proper research and start saving today!
Additionally, If you are interested be sure to check out our list of bank bonuses and CD rates!
