How to Open Your First Bank Account

Opening your first bank account can seem like an overwhelming, intimidating task. Bank accounts imply responsibility — both financial and personal — and for many people, opening a bank account is a big step into a new, adult life. And while opening a bank account is an important event in anyone’s life, it doesn’t invite any new, substantial commitments into a person’s life. Instead, opening a first bank account allows a person to start thinking about their finances more analytically, giving them the freedom to save, the power to spend, and a keen understanding of where, exactly, they stand financially.

Step 1: Choosing a Bank

Choosing a bank may be the most important part of the process. Most large cities host a number of reputable, nationwide chain banks as well as local banks and credit unions. It’s up to you to decide what’s important in the choice of a personal bank. National presence? If you travel frequently, you’ll want a bank with ATM machines and local branches across the country. A close relationships with a personal banker? Many regional banks are able to offer a sense of “home” at their banks, with personal bankers knowing their clients by name. Special, promotional products aimed specific professions? Many credit unions offer very competitive interest rates and products — such as home remodeling loans — that can’t be beat by larger chains.

Decide what you expect and demand from your bank. For many people, the safety of a large, national bank brand is the most important factor — they know that their money is safe. But if you’re after attractive interest rates, the largest bank chains generally cannot compete with regional firms, who many times offer very useful features on their accounts — such as refunding ATM fees from other banks and waiving international currency conversion fees.

It’s also important to consider what kind of account or accounts you’ll be opening. If it’s strictly a checking account, your needs will differ from someone looking to open both a savings and checking account. You might also decide to open a credit card account from a bank, but that type of account comes with its own set of concerns and responsibilities and will not be discussed in this article.

Go into several bank branches and take brochures describing the various accounts they offer. Create a list of each bank’s account features and compare their advantages and disadvantages. This way, you’ll be able to visually contrast each bank’s feature set against your own expectations and needs. You should be able to decide which bank matches your own financial ambitions.

Step 2: Opening Your Account

Once you’ve selected a bank and an account type, you’re ready to open your first bank account. Drive to the nearest branch of the bank you’ve selected and sign up to speak with a personal banker. During busy periods — such as lunch during the week or directly after work — you may have to wait up to an hour to speak with a personal banker. But many times, the branch where you’ve opened your account is associated with your account, so you’ll want to open your account at the most conveniently-located branch as opposed to a branch with lower foot traffic.

There is some information that you may need to take with you to your meeting with the personal banker. A cell phone or utility bill with your current address, a pay stub from your current job, and a some sort of deposit (such as a check or cash) may be required before you can open an account. Keep this in mind.
Tell the personal banker the type of account you’d like to open. You may be required to present the information listed above, so have this ready. This part of the process is generally very straightforward — the personal banker will input your information into his computer and should be able to get your application finished in a matter of minutes.

You’ll probably be given a temporary ATM card when you open your account, but a fully-functional debit card won’t come for a few days. Activating your debit card is generally as simple as checking your balance from an ATM.

Conclusion

Once you’ve opened your first bank account, you’ll have much more control over your personal finances and much more freedom to deposit, withdrawal, and save money. Opening your first bank account is the first step to financial freedom.