I want to open up a bank account but i don't understand how they work..?

Question

im 15 & i want to open a a bank account.

how old do you have to be?

how much money do you need to open one?

how exactly do they work?

i ask my parents and they suck at explaining stuff so i;ll just ask strangers.

serious answers only plz.

thanks.

Answer 1

At 15, you'll probably only be able to open a Savings Account in your own name.  You must be 18 to open other kinds of accounts.

Here's how it works:

A "Savings Account" is sorta like a piggy bank.  It's a place to accumulate money that you are saving for something.  The bank uses the money you've deposited to lend to other people and in exchange for that, they pay you about a penny per dollar every few months.  Your money is still available for you to withdraw any time you want, though.

A "Checking Account" you'll be able to get when you turn 18.  You deposit money in the account and then carry a checkbook around to pay for stuff.  You've probably seen your parents writing checks.  The advantage to this system is: you don't have to have a bunch of cash in your pocket.  It's much more secure to send a check through the mail than a bunch of $20 bills.

A "Money Market" account is more like an investment.  It pays interest; typically *much* better than a savings account.  The trade-off is that you often must keep a minimum amount in the account all the time (often $5000), and you can only write a certain number of checks on it per month.

A "Certificate of Deposit" isn't really an account so much as an investment.  It pays good interest, like a money market, but your money is inaccessible for however long the CD takes to mature; anywhere from a few months to several years.

Each of these 'accounts' has particular uses.  Like I said, at 15, your only option is probably a savings account.

Good for you for learning to manage your money!!!

Answer 2

First, you have to be 18 to get one alone, or else your parents also have to be there with you. How much you need to begin varies with banks, as well as if there are any extra fees, like going below a certain amount. The bank will tell you all that. Do it the way I did. I was all alone (I was 18), and I chose Wells Fargo, which I really like, and said I wanted to open an account. They have plenty of people who are there to explain the whole thing to you. Good luck!