Open A Bank Account – Make Sure You Get What You Really Need

Every bank in your area has advertisements and incentives trying to get you to open a bank account at their bank. They promise cash, electronics, gift cards, and many other types of gifts. They offer you free services, special interest rates, and a home town experience. All of those promises are great, but they do not help you decided what kind of account you really need.

Open a Bank Account

Before walking into the bank and getting confused by all the accounts and deals they are going to offer you, think about how you need to work with your money. Are you needing your money in an account which allows you instant access at ATM machines? Are you going to be using online bill payment for your monthly bills? Those two services are most often tied to a checking account.

With a checking account you will still have many decisions. Are you depositing enough money and planning to maintain a healthy balance? If yes, then look for a bank account with no service fees and which pays you interest. Your larger deposit and maintaining a balance gives you extra benefits, and you should take advantage of them. If you are only going to be depositing enough to cover your bills and regular expenditures, then look for an account with the lowest service fees which offers online banking, an ATM card, and any other features you need.

When you are depositing your money as an investment you will have even more decisions to make. While a passbook savings account offers you ease of access it pays the lowest interest rates of any kind of savings account. If you have substantial savings you are wanting to invest, you will want to open a bank account which is more profitable. A certificate of deposit is one of the safest accounts with a higher interest rate. They normally have a minimum deposit amount required to open the account. The certificate of deposit requires you to make a commitment to leave the money in the account for a period ranging from six months to five years. At most times the longer the time period the higher the interest rate.

Maybe you are looking to open a bank account for your child’s college fund. This creates a couple additional questions you need to consider. Are you wanting the account in your name or your child’s? Are you willing to commit the money for a longer period of time in a CD? You may want more than one account. You can open a passbook savings account to make regular contributions to, and then when the amount reaches a high enough amount to roll into a CD you can invest it in the higher yield accounts. This will give you both ease of access and the ability to get the higher interest rates.

By preparing yourself and knowing exactly what you want to accomplish before going to the bank, you will open a bank account which serves you, instead of limits you. With answers to these simple questions the bank’s account officer will be able to give you the best advice and assistance.