Opening an account at a bank or credit union is the first step toward owning your personal finances. Best of all? It\u2019s super easy.<\/p>\n
Up until now, you\u2019ve probably kept all of your money in your wallet or a jar on your dresser. While that may work when you\u2019re first starting out, you\u2019ll quickly realize that these aren\u2019t exactly the safest places to store your hard-earned cash. Keeping your money at a bank or credit union is free and safe, and you can view your account totals online.<\/p>\n
Another benefit of opening an account is that your money can grow with\u00a0interest<\/strong>. Basically, a financial institution pays you a percentage of your total balance just for keeping money in your account. While earnings from interest won\u2019t replace regular income, it means that your money is growing little by little without you having to do a thing.<\/p>\n Finally, depending on the type of account that you open (such as a checking account or a money market account), you may be able to get a debit card. When you buy things with the card, the amount will automatically be subtracted from your account. In other words, you won\u2019t have to worry about carrying around cash, you\u2019ll simply need to be aware of how much is available in your account.<\/p>\n Banks and credit unions offer different types of accounts that are specifically made to fit various goals and purposes. Some of the most common account types include:<\/p>\n The kind of account you start with will depend on your goals and what your bank or credit union offers. If you\u2019re under 18, your options may vary slightly. Some of the most common options for minors include\u00a0joint<\/strong>\u00a0or\u00a0custodial<\/strong>\u00a0accounts. These are accounts that you open with a parent or guardian. Both you and whoever you open the account with usually have access to deposit or withdraw money and certain penalties or requirements may be waived.<\/p>\n If you have a job, another serious benefit of opening an account is the option for\u00a0direct deposit<\/strong>, if your employer offers it. This means rather than getting a physical paycheck, money will automatically be deposited into whatever account you choose. This option gives you quicker and easier access to the money you earn. When you start a new job, you\u2019ll likely have the option to set it up or, if you\u2019re already working, you can talk to your employer about changing to direct deposit.<\/p>\n Opening an account at a bank or credit union is easy. You\u2019ll generally need an initial deposit (some money), a parent or guardian if you\u2019re under 18, and an ID (such as a driver\u2019s license, social security card, or birth certificate). Some banks or credit unions let you do everything online, though you may prefer to go into a branch so that you can get all of your questions answered and direct guidance about what will work best for you.<\/p>\nTypes of Accounts<\/h2>\n
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Direct Deposit<\/h2>\n
What You Need to Open an Account<\/h2>\n