According to studies, approximately 20 percent of college graduates have yet to know, much less open, a bank checking account. This is, of course, a sad state of affairs especially when one considers that the centerpiece of a bank's relationship with its customers is the checking account. Well, it is never too late to rectify the sad situation by opening your own checking account. Before you do, however, you must learn of a few things about it for your own sake.
Know Your Needs
Each type of checking account offered by banks caters to specific clientele by virtue of the differences in the services under each type. As such, you must determine your needs in relation to the checking account you wish to open.
To help you reach a decision faster, you may ask yourself the following questions about the bank checking account habits you may have in the future:
- How many checks will you write in a month?
- Will you want to maintain the minimum balance sufficient to cover checks issued and a few debit card purchases?
- Do you foresee bouncing checks in your future?
- How do you like your statement of accounts delivered to you - by mail or through online sites?
- What kind of banking transactions are you comfortable with - by phone, by person or by online methods?
Once you have satisfactory answers to these questions, you are ready to choose which type of bank checking account is just right for you. Keep in mind that your needs are foremost in this case so do not be pressured into opening any kind of bank account.
Know Your Options
And speaking of types of checking accounts, there are seven popular types to choose from. If you are in doubt about the advantages and disadvantages of each type, it is best to ask the bank officer to help you choose. In most instances, you will be guided in the right direction since the bank does want to keep you as a valued customer.
- Basic checking account - Payment of bills with some debit card purchases, limited number of checks issued for free, and minimum balance must be maintained to avoid service fees
- Free checking - Same as basic checking except that customers can write as many checks as they want subject to availability of account funds and minimum balance need not be maintained
- Interest-bearing account - Minimum balance must be maintained to earn a very low monthly interest otherwise hefty fees are charged
- Joint checking - Allows two or more people equal access to the account, which is often used for sharing and maintaining household expenses
- Express account - Characterized by unlimited check writing, low to no monthly fees and low minimum balance, the downside of which is that you may have to pay for teller fees.
- Lifeline account - Set by law in some US states, it boasts of low deposit and minimum balances with a limited number of checks written for free on a monthly basis
- Senior/student checking account - As the name implies, it is designed to accommodate students and senior citizens with perks like discounts with allied stores, free checks, and better rates on loans and credits
Now that you know your needs and your options, it is time to open your own personal bank checking account. Welcome to the world of commerce, banking-style!
Supriyadi Widodo is a Web Developer and Internet Marketer. He has a special guide that will enable you open US bank account as a Non-resident. Get a guide how to open
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