If you are a young adult who is just beginning to earn money, then the time has come for you to open a checking account. This is the safest way to keep your money while also having it readily available. With so many banks around, and with many of them offering several different types of checking accounts, what should be looking for as you select an account? Here are the key qualities that are beneficial to have in a first checking account.
No or Low Minimum Balance Requirement
Especially when you are just starting out as an earner, you do not want to have to keep a certain amount of money in your checking account in order to avoid a fee. Look instead for a checking account that either has no minimum balance requirement or a very low requirement. (For example, you might see a checking account with a $5 minimum, which is very reasonable.) This way, you don't have to worry about your account going into the negative when you're charged a fee because you spend most of your money.
No Monthly Fee
Some checking accounts charge fees, and for some people, it is worth paying those fees because it gives them access to specialized services like access to bank branches overseas and such. However, as someone first starting out with a first checking account, you should be just fine with a no-fee checking account, so don't give up until you find one.
Linked Savings Account
Make sure that the bank you are banking with allows you to have a savings account linked directly to your checking account. It is very convenient to then transfer money from one account to another. You're more likely to actually save if you're able to have this setup. It's less tempting to spend money that has been moved to savings.
No Transaction Limits
Some checking accounts limit the number of transactions you can make. This tends to be true of checking accounts that yield interest. However, you don't want to have to keep track of your monthly transactions and put off necessary purchases because you can only make so many transactions per month. Open an account without a transaction limit, and if you're worried about earning interest, park any of your extra money in a separate, interest-bearing savings account.
Hopefully, you now have a better idea of what to look for in a first checking account. There should be plenty of accounts out there that meet these specifications.Share
23 November 2020
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