How should I go about getting a bank account?I am 18 years old and I start college in January. I need a bank account for my financial aid, but I have no job and I have never really had to handle large amounts of money at one time. and I am very confused should I get a savings too I dont know. My mother told me that my name is on her account but I could think... |
You should get your own account, as mixing finances with your mother may be a headache. Personally, I don't care for Wells Fargo. I had them for a few months and I didn't like anything about it. I would recommend doing business with a credit union. The service is better and more individualized since they aren't as large. There are far less fees and more allowances are made for you should you incur one. Credit unions have the power to really make decisions on a case by case basis, rather than just follow corporate instructions like banks.
Get a checking account if you want a debit card. This is the main feature that sells people on opening a checking account. Get a savings account if you don't care about a debit card/checks and you're more of a cash person or don't have to make purchases often. With a savings account, you should still receive an ATM card, which will work at select places...like Wal Mart or gas stations, but it won't work like at restaurants or specialty stores like a check card does. Go with both if you want an easy way to spend but also save money as well. I would suggest stopping into a few banks and credit unions and asking to see a representative about opening an account. Simply say that you are just wanting to get some information. Regardless of where you go, someone there will JUMP at the opportunity to explain the features and benefits of their accounts.
Also, keep in mind that there's different types of checking accounts: Rewards Checking, Free/Basic Checking, Student Checking, Money Market, etc. There's many other types or variations of these. Be careful what you choose. Personally, if you're a student, I would say the basic/free checking is the way to go. The other accounts typically have stipulations or fees that are sketchy. And with many of these, you must keep a certain monthly balance, have a certain number of withdrawals/deposits monthly, etc. in order to avoid fees.
Do NOT get overdraft protection. You have the right to opt out. DO IT! Really, overdraft protection is for the people who want to save face. People don't want to be out purchasing and find out they don't have enough to cover the expense, and be embarrassed. Trust me, I'd rather be embarrassed ANY DAY than incur a charge which can be as high as $35 PER expense where overdraft was needed. I would want to be told that I was declined. I'll get it over it. But hey, that's me. Let me add that you can get overdraft protection to where the expense, or the difference of what could not be covered will be debited from a savings account. But, of course, you have to have a savings account and there's got to be enough in that account, or you will be charged the overdraft fee. It can also be set up so that you overdraft from a line of credit (LOC). I still wouldn't do it. It's an easy habit to get into and before you know it, you are always spending more than you have.
First understand that choosing a bank should be done with care. Don't just go and open a bank account account without first becoming bank literate. You can lose a lot of your money if you don't understand the banking business.
Banks are in business to make money and they do make a lot of money from individuals that don't take the time out to research such things as their fees and charges.
Banks have fees and charges that can eat up your money very fast.
Second, Go visit a few different banks and ask them to explain to you the following things:
Banking Fees such as ATM Charges, Debit Card Fees, Insufficient Fund Fees, and any other fees
and charges they might charge you. Ask them how you can avoid those fees and charges.
Once you know a little about their charges and fees you will feel a little more comfortable with
opening up an account and will have a more positive experience with them.
I would avoid wells fargo or any private banks, the fees and crap bulk mail they distribute is insane. I was with wells, it was a hassle. I am with a credit union, practically no fees, and better customer service.
anyways you should get a checking account. look for an account with little to no fees. and make sure you get overdraft protection... it's important!
Just go down to the bank and ask the banker what sort of account you should open there.
