Opening a Bank Account
Once you’ve set your budget, you’ll need a financial institution for your banking needs. While your parents probably play the active part in choosing a bank account for you, it’s important for you to know what services various banks or credit unions provide. When deciding to open an account, look around for what options are available. Ask about offered services, fee structures, hours of operation, etc. Some characteristics of a bank account:

Savings Account
1. Interest rates – allow you to grow your money
2. Allows you to “stash away” money you don’t need

Checking Account
1. Liquid money – more easily accessible
2. Average monthly balance
Minimum balance – must keep set balance in account each month to avoid minimum-balance fees
Zero balance – no set balance; generally higher fees

The positives in having a minimum balance are that generally, you will gain interest on the money held in the account. Over time, this amount can be significant. Also, you will avoid spending too much. The negative is that the money you would otherwise be using is tied up. You must make the decision in how valuable that money is to you – do you need it so desperately that you would forego earning interest on it? If so, you want to have a zero balance account – it does not earn interest, but the fees associated with the account are generally higher than a minimum balance account. Check with your financial institution to learn how fees are assessed.

Visa® Check Card or Other Debit Card
A card directly linked to your checking account so that you don’t need to carry cash with you. You can use it to make purchases anywhere Visa is accepted. There are no monthly payments or interest payments associated with the card. Check with your financial institution to see if there are any initial charges or yearly fees associated with the card.

Checks
Use checks to pay bills and make various payments. Most banks allow unlimited check writing. Be careful not to write checks for an amount greater than the amount in your account, or the check will "bounce." There are high fees associated with this at most banks, though some banks may offer overdraft protection to cover you if you write a check that is larger than your available balance. Check with your financial institution about fees and other services related to check writing. Most vendors still accept checks though most accept Visa® Check Cards as well.

ATM Access
You can use your Visa Check Card or an ATM card to withdraw from various ATMs (Automated Teller Machines). To avoid fees such as surcharges, use an ATM that belongs to your own financial institution. Some banks allow you to use other banks’ ATMs without charge. See your financial institution for more information about the fees associated with ATM usage and the locations of ATMs.

Direct Deposits, Electronic Fund Transfers
Allows electronic transferring of your money to/from your account.
If you want your paychecks immediately deposited into your account instead of dealing with paper checks, this is a great way of receiving payment. All you need is routing information from your bank and your account number.

If you’d like to pay for your credit card bill or other bills from your account, the payment can leave your account electronically with an electronic funds transfer with the same bank information as direct deposits.

Online Banking
This feature allows you to check your account history online and make transfers between your savings and checking account. You may also be able to pay your bills online. Check with your financial institution about online banking. There are many other services available that your bank can offer, such as wires (so that your parents don’t have to mail a check and the money is available immediately), stop payments on checks, and Certificates of Deposit to earn higher interest on your money. Check with your financial institution to learn the particular services they offer.