Hello! Anoosh is here and Today I am going to share some essential tips and steps if you are willing to open your first bank account. We all know the Value of money. But if you want to protect your money, you have to choose the best bank account to protect your finances. Because if you choose the wrong bank account while selecting the Bank, you may lose your Finance or your money will not work for you.
So, if you want maximize your finance, you have to select the right bank account. This blog post will help you to choose the right bank account. And it will also help you to maximize your finance also.
Here is some best things you have to know before opening your first bank account:
1: Understand the types of bank accounts
Before opening your first bank account, you have to understand the concept of bank account types. It will help you to choose you right bank account for yourself. Different types of bank accounts are available nowadays. For example saving accounts, certificate of deposit, Checking Accounts, Money Market Accounts. You have to get knowledge about these accounts.
Like if you are willing to open a bank account for online transactions and you want to send and receive money everyday, Checking Account is suitable for you. Because it offers you a lot of options to send money like you can send money through your debit card, bank checks and from the app of the bank also.
If you want to save your finances and maximize it, Saving Account is best choice for you. Because it gives you some interest also on saving your money.
As saving account offer you some interest rate on your finance if you save money in your bank account but there is another account that gives you high interest rate. The name of this bank account type is Money Market Accounts. The main thing you have to keep in mind that this account place some restriction on your withdrawal.
So, if you don’t want restriction on your withdrawal, money market account is not suitable for you.
2: Get information about Bank Fees
As you know that Bank charges some fees in return of providing you a lot of services. In some cases you have to choose the service you want to get or not. But there are some other fees involved in bank fees and you cannot avoid them.
So, if you know the detail information about Bank fees and understand their working, you can save a lot of money. There are different types of bank fees and it also depend on the type of the bank account.
Some common fees that every Bank charges from their customers are monthly maintenance fees, ATM fees, Non-sufficient fund fees, and overdraft face. Monthly maintenance fees is charged from the customer for maintaining bank account while Non-sufficient fees is charged when any transaction is rejected if your fund is not sufficient.
And if you use your ATM card in some other ATM branch that is not related to your bank, it will deduct some money that is ATM fees.
If you are opening your first account, you have to take a look on some other fees and these fees are different in every Bank. Like stop payment fees, foreign transaction fees.
Get the detail information about the bank fees and then choose the bank.
Some strategies to avoid Bank fees:
While opening your first bank account, you have to adopt some strategies if you want to avoid Bank fees. Here are some common mistakes you have to avoid, if you want to lessen your bank fees.
- To avoid the bank fees you have to maintain your minimum balance. Because if you maintain your minimum balance, some bank account doesn’t charge you any fees.
- Avoid your ATM fees and use the ATM related to your bank account. Use your in network ATM and save your cash.
- If you want to save your money and avoid fees, you can also sign up for overdraft protection. Singing up for overdraft protection also charge some fees. But it is not more than the multiple overdraft fees. And it will help you to reduce your fees.
- Check your bank account everyday. A lot of bank account offers you the mobile app. Check the mobile app and your balance everyday to avoid extra fees.
- Banks also give you the fine print. Read their terms and conditions carefully before opening your first bank account in any branch.
These were some different types of bank fees. Avoid these mistakes. Read the bank fees in detail before opening up an account. Be active and manage your bank account and finances carefully.
3: Interest rate
Before opening your first bank account you have to take a look on the interest rates that which bank is giving you the best and higher interest rate. If the interest rate is higher, you will get more money on your saving.
4: Minimum balance requirements
As we know that a lot of banks offers you to maintain the minimum balance requirement if you want to avoid the fees. If you maintain the minimum balance requirement, you can also earn some interest rate on your money.
5: Mobile banking and online system
If you are choosing the right bank account for yourself and it is your first account, you have to see online banking system and mobile application facility. These facilities will help you to send and receive money from anywhere. So, also get the information about mobile banking and online system of the bank account.
6: ATM network
Before opening your first bank account, you have to check the ATM network services. When a lot of ATM network will be available, you can easily withdraw your money from anywhere. And it will help you to lessen your ATM fees
Conclusion:
In this post, I have described some best thing you have to keep in mind before opening your first bank account. Avoid the mistakes and also take a look on the customer services while opening up your first account.