CFI.co Blog

Most people need only two bank accounts: one checking account and one savings account. This keeps things simpler and your finances easier to manage.

Savings accounts limit your access to your money, which is why they’re best for saving. Checking accounts, though, allows you easy access.

These are for spending, so they’re for paying bills, withdrawals, and so on. That’s why every person must have them.

If you’re a beginner to all these, you’re in the right place. Keep on reading for some tips on opening a checking account.

1. Know Your Needs and Frustrations

When opening a checking account, you first need to choose a bank. However, all the options can overwhelm you.

There are online banks, traditional banks, and even credit unions. Then, there are lots of options under each category.

To start choosing a bank, know your needs and frustrations first. What services are important to you? How about perks you’d like to get with your checking accounts?

Then, know what frustrates you, as well. Do you want to avoid huge fees? Do you have issues with certain features or requirements?

If you travel a lot or are online often, you may also want to use mobile banking. Check if the bank offers that as well.

Knowing what you like and don’t like will allow you to shortlist banks and the types of checking accounts.

2. Review the Features of Different Banks

Once you have a shortlist of different banks, it’s time to review their features, fees, and services. Check the minimum balance requirements and any fees, like the monthly service fee, overdraft fee, ATM fee, printed statement fee, and other fees you can incur.

You should also check out the insurance that the bank provides. Make sure it’s from either the National Credit Union Administration (NCUA) or Federal Deposit Insurance Corporation (FDIC).

The interest and rewards will also vary per institution. Check which features are more convenient or more preferable to you. The ATM network is something to consider, as well.

3. Consider a Lower Risk Account

Some banks and credit unions don’t allow you to overdraft. Meaning, you can only spend the money you have in your account. Even for online bills payment and checks, the account won’t let you overdraft.

Such accounts pose lower risks as you won’t get surprised with an overdraft fee or other common banking fees. These can go unnoticed, especially when people think they still have money they don’t have. You also cut the risk of losing your account privileges only because of some unpaid overdrafts.

Don’t hesitate to ask the bank if they have a “no-overdraft” account. Some have them but don’t market them, while others may not have them at all.

4. Visit the Bank In-Person

Modernized banks and online banks allow you to do everything online – from applying for accounts to sending e-documents. This makes for a smoother experience as you can open an account without stepping foot out of your home.

However, some people might prefer doing this process in person. If this is you, don’t hesitate to visit the bank you’re interested in. This also gives you an idea of their locations and if they have one near you.

This is also the preferred choice of other banks that are yet to modernize. In that case, you’ll have to schedule an appointment.

5. Ask the Right Questions

When you visit a location in person, prepare a set of questions to ask the teller, particularly about opening a checking account balance. Don’t hold back; opening up an account can be a long-term commitment.

Ask about all kinds of fees you can incur and how you can avoid them. Make sure you know the minimum balance requirements. And, clarify if this is for one account only or for across all accounts you have with them.

Clarify the withdrawal and transfer limits, as well. Then, ask how much are the fees if you go over the limit.

6. Look for Online and Mobile Features

Not all banks are up-to-date with recent technologies. As such, don’t expect them all to have mobile and online banking features.

A bank app is a must because it makes banking more convenient. You won’t have to fall in line to transfer money, for example, and you’ll have access to your balance at all times. Some of them will even let you deposit checks via a mobile app.

So, before you sign any contract, make sure the bank has an app you can access online or download to your phone. Seeing as how we spend an average of 6 hours and 42 minutes per day on the internet, online banking is a non-negotiable feature.

7. Prepare the Minimum Deposit

The initial deposit should matter in your decision-making because, in some banks, the opening deposit can go as high as $100. Most usually ask you to deposit around $25 to $100 to open an account.

Find out if your chosen bank and account needs a deposit and prepare that before applying. Even if you’re qualified and you have all the documents you need, you won’t be able to pursue the application without it.

Some accounts don’t require a deposit right away, though. Look for these accounts if the deposit is an issue for you.

8. Bring the Necessary Documents

To ensure a smooth process, research all the documents you need to bring when going to the bank. It’s a fairly simple process, but only if you prepare everything you need ahead of time.

Research the requirements for a checking account from your bank of choice. Remember that these may be different when you’re underaged or more than one person is opening the account.

Aside from the filled-up forms, banks usually require identification documents. In general, you’ll need a government-issued ID, SSN or TIN, and proof of address. You may also have to bring your student ID, power of attorney, or anything else for special cases.

Review Checking Accounts Before Committing

What we can take away from this is that you should review checking accounts before opening one. This ensures you get the best option for you and you’re satisfied with all the features, requirements, and terms before signing a contract.

If you have any questions, though, we’ll be happy to help. Contact us today.

In 2018, over two-thirds of adults from the UK used some form of online banking. Though you may not think of banking and finance work as exciting or high-stakes, the field is evolving rapidly. As banking moves more and more digital, you may be wondering if your current bank is keeping up. 

If you’ve been thinking about switching to a new bank but are still on the fence, read on. There are a few telltale signs that it’s time to make the switch. 

1. Limited Online Banking

Like we said, online banking is the newest frontier. In fact, there are many banks with no brick and mortar branches. These online-only banks are cutting-edge. 

Therefore, there’s no excuse for your bank to have a clunky mobile app or inaccessible website. If your bank isn’t keeping up with the digital revolution, it may be time to go. 

Of course, if you want a bank that still has physical branches, you have options as well. Many banking institutions have great technology and still allow their clients to bank in-person. 

Just know that you can easily upgrade your online banking experience!

2. The Service Fees Aren’t Worth It

Some banks pull tricks to try and get as much money from you as possible. This includes raising their overdraft fees, raising minimum balances, and charging a returned mail fee. 

If your bank is trying to take as much money from you as possible, run the other way. Many banks have reasonable fees, or even better, fee-free banking options. Banks with lower fees are more likely to view their clients as people, rather than potential profit. 

3. Your Savings Returns Are Unimpressive

Is your savings account languishing instead of growing? Are you earning pennies on your investment? Look for another bank. 

You can find lots of high-yield savings account options while shopping around. These typically offer between 1.2% and 3% interest rates, while some banks only offer around .6%. 

You can make your savings account work for you, instead of the other way around. Research other institutions and their high-yield account options. 

4. Getting Your Money Is A Hassle

With the advent of online banking, getting access to your money should be easier than ever. If a bank offers anything less than lightning-fast transfers, they’re being left behind. 

You may think that having slow access to your funds is a compromise worth making. But if you encounter any sort of emergency and need money immediately, you’ll wish you’d switched to a lower-hassle institution. 

Avoid banks that take a long time to finalize your deposits. Look for ones that will let you use your money as soon as you leave the branch. 

5. You Have Monthly Fees On Your Checking Account

Your current bank may have a surprisingly low monthly rate. However, even £10 is too much when it could be £0! 

Many banks offer an option where you only have to pay a monthly fee if you are below the minimum balance. But others have neither a minimum balance nor a monthly fee. Shop around and see what your local institutions offer. 

A monthly fee to keep your checking account is a sign that a bank views you as a number instead of a person. Monthly bank fees are unpopular among consumers, so many institutions are doing away with them altogether. Don’t settle for a low monthly rate when you could have none! 

6. The Minimum Balance Is Too High

Some banks offer high-yield checking and savings accounts but also require a higher minimum balance. If you’re in a tighter spot than you were when you opened your account, you may have trouble keeping the minimum balance. 

This is one of the most practical reasons to switch banks. If you cannot afford to stay with your original bank, you can find high-yield accounts elsewhere. You may have to compromise, but that’s okay. 

The stress of meeting an unattainable minimum balance isn’t worth it. You can make this easier on yourself by making a change. 

7. Lack Of Accessible ATMs

Though the world is moving more and more online, there are still situations in which you need cash. Though there seems to be an ATM on every corner, some banks charge exorbitant fees to use out-of-network machines. 

If you can only use your bank’s proprietary machines without paying a fee, finding the right ATM can be a hassle. This becomes an even worse problem when the right ATMs are few and far between. 

Find a bank that has convenient ATMs, or doesn’t charge ATM withdrawal fees. You deserve convenience, and shouldn’t have to pay to access your money! 

8. Customer Service Is Rude Or Unhelpful

When you encounter a problem with your bank, their customer service should be swift, polite, and helpful. You should not settle for less, especially when it comes to your money!

Your bank should make it easy to contact customer service. There should be multiple methods of contacting them: instant chat, phone number, email. The representatives should be kind and helpful. 

If you have had multiple bad experiences with a bank’s customer service, it’s probably time to switch. Even if there is little else to critique about your bank, bad customer service can drive you away. Your bank should be working to make sure you stay with them for as long as possible.  

Find A New Bank That Puts You First

When looking for a new bank, you may not be sure if it’s really time to change. There will always be a million reasons to stay, but just know, you don’t have to settle. The field of banking is advancing fast, and you can have a better banking experience than ever. 

Don’t be afraid to do your research. Don’t make your decision in haste, and ensure that your new bank works for you.

For more advice, trends, and market analysis, read through our blog. At Capital Finance International, we strive to bring you finance news that’s interesting and helpful. If you want to learn more about how to bank better, read our blogs now.