Benefits of having a bank account?

Question

Hi, I don't yet have a bank account and before I bluntly jump in and get one I'd like to know a few things:

*Is there any significant difference amongst banks and if so based on your personal experiences what banks do you reccomend and why?

*What are the requirements for creating a bank account?

*Once having a bank account does the bank offer any "investment plans" that will help my money grow? and if so what are some quotes/taxations or fees I need to be aware of?

*How old do I have to be to do any of this?

Answer 1

You need to be 18 in order to have accounts in your own name.  Otherwise, you will need an adult to co-sign the account with you.  (If this is the case, be sure to ask before signing up, some banks won't let a minor cash checks or make withdrawals without the adult of record present.)

Make a list of questions and ask the new accounts person before selecting a financial institiution.  (You can do this by phone.)  And the other answerer is correct, a credit union is likely to get you better rates.

--Is there a monthly fee?  (Cross them off your list.)

--What is the interest rate for the savings account?

--Do they pay interest on checking?

--How much do checks cost?

--Is there a fee for an ATM card (or debit card?)

--Is there a fee to use their ATM's?

--Do they rebate fees if you use other bank's ATM's?

Once you have these same basic questions answered from a number of places, it should be easy to make a decision.  (If there is a particular feature or benefit that is particularly important to you, give it extra weight in your final decision.  For instance, if you don't have a car, being able to get cash from other bank's ATM's without a fee may be more important to you than to someone with a car.)

Treat investment plans as a separate entity.  Banks and credit unions may have certificates of deposit, but honestly, those aren't the best use of your investment dollars.

There are lots of books at the library and book stores about beginning investors and you are smart to start making those plans now.  With some research, you will find some no load (no fee) mutual funds that will likely pay off better in the long run than CD's.  

You might also consider using savings to upgrade your education to improve your earning potential.

There are lots of ways to go here.

Answer 2

Many banks and credit unions have savings accounts for minors so even if you are not yet 18 you can open one.

A savings account is easier to open and probably wiser than a checking account.  Fees DO vary so ask questions.  Pick up a brochure and READ it.  Talk to a person at each of three banks or credit unions and decide which seems institution seems to best fit your needs.  Consider convenience of locations.  If you may go away to college, be sure there is a branch there.

Start reading financial magazines but don't believe everything you read.  When you have enough money saved to invest, consider a no-load mutual fund.  Do not invest in funds through the bank as they are often load funds and not your best buy.

Congratulations on thinking about your financial future while you are young.  You will be miles ahead of the pack.

Answer 3

There are big differences among banks which is why I recommend a local credit union. Check the phone book. All banks and Credit unions offer a variety of investment services. Open an account and then ask to see an investment advisor. At banks the advisor makes money off of you. At credit unions they are paid to help you. You choose.