Shortly after graduating college, reality sets in: you’re a real adult now. It can be overwhelming, but it’s time to deal with your financial life and this includes taxes, student loan debt, and mortgage or rent payments. It’s also time to get down to business when it comes to saving money.
First things first: you’ve got find a bank that is free and will help you manage your money efficiently. If you had a student checking account at your college bank, it’s time to get rid of that and instead open a bank account that suits your new adulting lifestyle.
Luckily, opening your first adult bank account isn’t as difficult as it seems. Here are 5 tips to help you get you started.
Consider Accessibility and Convenience
If a brick-and-mortar bank is important to you, make sure that a branch is easily accessible should you need to make deposits, withdrawals or talk to a teller. This doesn’t mean your bank has to be on every street corner in your neighborhood. But, you also don’t want to travel far if you have an issue with your account and need to speak to a representative.
With this in mind, make sure your bank is open during the hours you can get there. For example, if you have mostly evenings available during the week, you may want to consider a bank that can accommodate those hours.
Another tip: you may want to consider an online bank account, especially if you never go into a branch and prefer to deal with banking issues online or on the phone. With an online bank, you’ll have 24/7 access to your account. You can also manage your account from home or on the go on your mobile device.
Check the Fees
Banks fees are one of the most important factors to keep in mind when choosing where to open your first adult bank account.
For starters, miscellaneous fees can eat up your account balance fast. In fact, the average U.S. household pays more than $329 in bank fees every year! Some of the most common bank fees include:
- Monthly maintenance fees
- Minimum account balance fees – charged if your daily account balance falls below a certain threshold
- Overdraft fees. These can run you up to $35 per overdraft incident
- ATM fees. These are charged when you use an out-of-network ATM
- Refunded deposit fee – charged for a bounced deposit check
- Paper statement fee
- Lost debit card fee
- Foreign transaction fee
The good news is that most of these fees can be avoided depending on which bank and account you choose. For example, Chime makes banking faster and has no fees, ever. That’s right. No overdraft fees, minimum balance requirements, monthly service account fees, ACH bank transfer fees, card replacement fees, or foreign transaction fees. In addition, Chime members have access to more than 30,000 fee-free MoneyPass ATMs located all over the U.S.
Read the Fine Print
Before you open a bank account, be sure to read the fine print in order to fully understand the terms and details.
Consider the Saving Account Benefits
While you may be mainly focused on opening a checking account, it’s a wise idea to open a savings account as well.
Pro tip: it helps to keep your spending money separate from your savings. As part of your savings plan, you may want to start a fund to cover emergencies and unexpected expenses. Plus, you can begin saving up for big purchases in advance. This will help you steer clear of racking up credit card debt.
When it comes to choosing the best savings account, you may want to consider a bank that will provide an interest-bearing account and automatic transfer options. And, just like with a checking account, you’ll want to examine the fees and read the fine print. One major rule set by the Federal Reserve is that banks cannot allow you to withdraw money from your savings account more than six times per month. Some banks may even have an excessive withdrawal fee, so make sure to check on this.
Comparison Shop and Choose Wisely
Post-graduate life is full of changes and new beginnings. And, your first bank account after college marks a new start on your adult financial life. By following the advice above and comparison shopping, you’ll be one step closer to finding the best bank for you.