Theresa Stevens is a personal finance writer based in Boston, MA. As a former financial advisor, she has first-hand experience helping people solve their money challenges. When she's not writing, you'll find her trying out a new karaoke spot or plann.
Theresa Stevens ContributorTheresa Stevens is a personal finance writer based in Boston, MA. As a former financial advisor, she has first-hand experience helping people solve their money challenges. When she's not writing, you'll find her trying out a new karaoke spot or plann.
Written By Theresa Stevens ContributorTheresa Stevens is a personal finance writer based in Boston, MA. As a former financial advisor, she has first-hand experience helping people solve their money challenges. When she's not writing, you'll find her trying out a new karaoke spot or plann.
Theresa Stevens ContributorTheresa Stevens is a personal finance writer based in Boston, MA. As a former financial advisor, she has first-hand experience helping people solve their money challenges. When she's not writing, you'll find her trying out a new karaoke spot or plann.
Contributor Elizabeth Aldrich Banking WriterWith eight years of experience as a financial journalist and editor and a degree in economics, Elizabeth Aldrich has worked on thousands of articles within the realm of banking, economics, credit cards, investing, loans, personal finance and travel.
Elizabeth Aldrich Banking WriterWith eight years of experience as a financial journalist and editor and a degree in economics, Elizabeth Aldrich has worked on thousands of articles within the realm of banking, economics, credit cards, investing, loans, personal finance and travel.
Elizabeth Aldrich Banking WriterWith eight years of experience as a financial journalist and editor and a degree in economics, Elizabeth Aldrich has worked on thousands of articles within the realm of banking, economics, credit cards, investing, loans, personal finance and travel.
Elizabeth Aldrich Banking WriterWith eight years of experience as a financial journalist and editor and a degree in economics, Elizabeth Aldrich has worked on thousands of articles within the realm of banking, economics, credit cards, investing, loans, personal finance and travel.
Updated: Sep 4, 2024, 12:31pm
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Opening a checking account is a rite of passage that often marks the beginning of a person’s financial life. If you’ve never applied for a checking account, you might not know what to expect. To help you out, here’s everything you need to know about how to start a checking account.
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On U.S. Bank's WebsiteIdentification: The bank you choose will usually collect details from you to verify your identity and confirm your eligibility to open the account. You generally must supply your:
Opening deposit: Most banks require an initial deposit to open a checking account—usually $25. Initial deposit requirements can be as low as $5 and typically don’t exceed $100. Some banks don’t require any deposit to open a checking account.
There are several types of checking accounts to choose from. Here are the most popular types:
Different financial institutions have different options when it comes to checking accounts. While most types of checking accounts are available from both online and conventional brick-and-mortar banks, the accounts themselves can vary between the two major categories of institutions.
Online checking accounts typically have lower fees than checking accounts offered by traditional banks because online banks have lower overhead costs.
Pros of Online Checking
Cons of Online Checking
Meanwhile, brick-and-mortar banks typically offer their checking customers personalized, face-to-face service at branch locations and larger ATM networks.
Pros of Traditional Checking
Cons of Traditional Checking
You have several factors to consider as you compare checking accounts. When choosing a check account, pay special attention to the features below.
While checking accounts don’t typically offer interest or rewards, those features aren’t unheard of. Look for a high-yield checking account if you tend to keep a higher balance in checking. If you tend to spend a lot, consider a checking account that comes with a rewards debit card.
Fees can vary significantly depending on the financial institution and account type. For example, fees associated with a student checking account are usually lower than fees for a traditional or business checking account. That’s why it’s important to review a bank’s schedule of fees prior to applying for your account.
Fees you might encounter with a checking account include:
Most banks offer ways to avoid monthly maintenance fees, such as enrolling in direct deposit or maintaining a minimum balance. Because fees vary widely from one bank to the next, shopping around for the best rates is crucial.
Some banks require you to maintain a certain amount of money in your checking account—a minimum daily balance—to avoid monthly fees. If your balance dips below the threshold at the end of any given day, you may be charged a fee.
If you open an account with a minimum daily balance requirement, keep a close eye on your account to ensure you don’t accidentally fall under the limit.
The Federal Deposit Insurance Corporation (FDIC) was established in 1933 to rebuild the nation’s trust in the financial system after the Great Depression. FDIC insurance protects the money consumers hold in their bank accounts in case the bank fails.
Only deposit accounts—including checking, savings and certificate of deposit (CD) accounts—are eligible for FDIC insurance. The agency does not insure investments in stocks, bonds or other securities.
The FDIC insures up to $250,000 per depositor, per bank and per account category. FDIC coverage does not guarantee money held at credit unions, which are insured by the National Credit Union Administration (NCUA).
Although the specific process varies by bank, opening a checking account generally involves these steps:
When opening a checking account, ask about special offers or bank bonuses for new customers. Many financial institutions try to attract customers by offering cash bonuses or higher interest rates for a certain period of time.
Opening a checking account online is similar to opening an account in person, and most banks and credit unions now offer online applications. You’ll want to have your ID and Social Security number or Tax Identification Number on hand. You’ll also want to have access to funds in case you need to make an opening deposit.
When you’re ready to open an account, visit the bank’s website and look for an “open an account” or “get started” button—this should lead you to an online application. Once you’re approved, you can fund your account by transferring money from another bank, or you can mail a check.
Most banks don’t require a credit check to open a bank account, so bad credit shouldn’t impact your ability to open a checking account. However, if you have a history of negative banking activity, such as repeated overdrafts, unpaid balances and bounced checks, you may have trouble opening a checking account.
Request a copy of your ChexSystems report to stay ahead of any potential obstacles to opening a bank account. Second-chance checking accounts may be available even if you have negative marks on your banking record.
A checking account can help your child develop money management skills at an early age. Minors are not allowed to open a checking account on their own, but they can open one with an adult. Kids can use checking accounts to deposit money, make purchases and save for specific goals.
One of the best ways to open a checking account for your child is to apply for a joint account:
With many joint checking accounts, the child has full access to the account and can make withdrawals and purchases. If you’re concerned about your kid overusing the account, choose a bank that allows you to track your child’s spending and set parental controls.
There’s no limit to the number of checking accounts you can have—you may open as many as you wish. One checking account is enough for some people, while others may want multiple accounts to separate specific financial transactions or stay under the FDIC coverage limits.
Opening multiple checking accounts allows you to have individual and joint accounts. Many couples prefer having a few accounts: individual checking accounts for personal expenses and a joint checking account for shared expenses.
A checking account is a safe and convenient place to keep cash you need for everyday use. With checking accounts, you can easily access your money and make payments with a debit card, check, electronic transfer or ATM withdrawal. You can use the account to receive a paycheck and other deposits free of charge, and there are typically no monthly withdrawal limits from checking accounts like there are with some savings accounts.
Opening a checking account is relatively straightforward but requires due diligence to uncover the best option. Compare the best checking accounts based on their fees and balance requirements to find an account that suits your needs and wallet.
Find The Best Checking Accounts Of 2024
Typically, you must be at least 18 years old to open your own checking account. Some banks offer bank accounts for minors, but only if you open the account jointly with a parent or guardian.
Opening a checking account can take anywhere from a few minutes to several days, depending on the bank.
Most banks don’t charge a fee to open a checking account, but some banks may require an initial deposit as part of the account opening process. Many banks charge monthly service fees to maintain your account, although it’s not hard to find free checking accounts at online banks.
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ContributorTheresa Stevens is a personal finance writer based in Boston, MA. As a former financial advisor, she has first-hand experience helping people solve their money challenges. When she's not writing, you'll find her trying out a new karaoke spot or planning her next trip abroad.
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