Whether this is your first checking account or your first with a new financial institution, there’s a process you need to follow and information you should know.
First, opening a checking account is a significant step in your financial journey and a key milestone in achieving financial independence. It can help you organize and keep track of your finances, get paid quicker with direct deposit, and often comes with a debit card to allow easier spending.
Read on to learn more about what you need to know when opening that first checking account. Just consider this your ultimate guide for first-time account holders.
Why Open a Checking Account?
Why should you consider opening a checking account? There are numerous reasons why a checking account is an ideal step in your financial journey. Here’s a look at some of the key benefits:
- It’s a secure means of storing your money.
- A checking account can teach you financial responsibility. Unlike a credit card, you can only spend the money available in your checking account. Various financial management tools can help you track spending, create budgets, and effectively manage your finances.
- Thanks to mobile banking, checking accounts are easy to access and manage. Account holders can quickly check their balance, transfer money, and arrange automatic bill payments.
- Direct deposit: Rather than receiving a physical check from your employer every pay period, you can arrange for funds to be deposited directly into your checking account.
- Unlike a savings account, checking accounts offer the option to pay via online transfer with a debit card or by writing a physical check.
Additionally, opening up a checking account with a financial institution helps you build a relationship with this particular entity. It helps you become more aware of future opportunities related to your finances.
What to Look for When Choosing a Bank or Credit Union
Are you ready to open a checking account? If you want to maximize value, don’t be afraid to do some shopping around. Some of the factors that you’ll want to consider may include:
- Account fees: Some financial institutions charge maintenance fees on their checking accounts. Sometimes, these maintenance fees can cost up to $15 per month. Other fees include overdraft and non-sufficient funds fees, which are fees charged if you spend or withdraw more money than you have in your account.
- Mobile banking features: Another factor you’ll want to consider is the mobile banking platform the institution you’re considering offers. Weigh the pros and cons of the various mobile platforms and check them for functionality and ease of use.
- Customer support: If you need help with your banking, how confident are you that you’ll be able to receive it quickly? Customer experience is another important factor you shouldn’t overlook when deciding where to open a checking account.
- Branch locations and ATMs: While mobile banking has limited the need to visit a physical branch, there are still times when you’ll need to head to a physical branch or visit an ATM to withdraw cash from your savings or checking account. The more locations of each, the better.
You have several banking options when you open a checking account. While all options have their pros and cons, credit unions tend to be more dedicated to providing value to their members. Credit unions tend to offer minimal checking account fees and also offer various value-added member benefits, which may include overdraft protection, a wider network of ATMs members can use, and better overall customer support and service.
How to Open Your First Checking Account
So, you’ve decided on a financial institution and are ready to open a checking account. Here are a few things you’ll need whether you open your bank account online or at a physical branch:
- You’ll need a valid government-issued photo ID, such as a driver’s license, state ID, or passport.
- If you’re working with a credit union, you’ll need to provide proof of address to help ensure you meet any membership requirements.
- You’ll need to provide your social security number, which is required for tax purposes.
- You may need to make an initial deposit. Some banks and credit unions require you to make a deposit or carry a minimum balance in your checking account.
Once you meet the requirements, you’re ready to open a checking account.
Things to Know Before Opening Your First Checking Account
Be prepared before opening your first checking account. Not only is a checking account a responsibility that you’ll have to assume, but you’ll also want to be mindful of the intangibles that could come with it.
For example, you should know the account basics, such as account fees, overdraft policies, and whether you must carry a minimum balance. You should also be familiar with account features, such as mobile apps, mobile banking, online bill pay, and direct deposit options.
Finally, don’t be afraid to ask questions. For instance, there may be special banking options for students, or the institution may be running a promotion for opening an account with it. No question is a bad question when it comes to understanding your checking account and banking options.
Credit Union Benefits for First-Time Account Holders
Here are just a few of the benefits when you open a checking account with HFS FCU:
- No maintenance fees, no minimum balance
- Complimentary checks with Direct Deposit
- Get your debit card the same day
- Surcharge-fee ATM access at any Bank of Hawaii ATM1
HFS FCU offers competitive interest rates, personalized customer service, and financial education to empower our members with the knowledge to reach their financial goals.
1Other fees may apply for out-of-network ATMs.
Common Mistakes to Avoid When Opening Your First Checking Account
While there can be a lot of excitement about opening your first checking account, there are some mistakes to avoid throughout the process. Here’s a look at some of these common pitfalls:
- Not reading and understanding the account terms and conditions.
- Overlooking hidden fees and transaction limits.
- Failing to set up account alerts or overdraft protections.
Ready to Open Your First Checking Account with HFS?
If you’re ready to take the next step on your financial journey, contact HFS FCU today to open a checking account. Opening a checking account online or in person at one of our local branches is easy.
FAQs
Can I open a bank account if I’m under 18?
Yes, but you’ll likely need a parent or guardian to be added as a joint account holder.
What’s the minimum deposit required to open an account?
At HFS Federal Credit Union, accounts for minors under 18 require a minimum deposit of $5 and accounts for adults 18 and older require a minimum deposit of just $50.
How do I choose the right checking account for me?
Shop around and do your homework. Get a good understanding of the account’s terms and conditions. Do not overlook any hidden fees and transaction limits.
What are the benefits of opening an account with HFS FCU?
- No maintenance fees, no minimum balance
- Complimentary checks with Direct Deposit
- Get your debit card the same day
- Surcharge-fee ATM access at any Bank of Hawaii ATM1
1Other fees may apply for out-of-network ATMs.
