Opening Your First Checking Account? Here’s What You Need to Know

If you’re opening your first checking account—congrats! Read on for a fast guide to everything you need to know about opening an account.  

What Is a Checking Account? 

A checking account is designed for everyday spending. The money you keep in a checking account can be easily accessed on demand, whether you’re withdrawing cash at an ATM, making a purchase with your debit card, sending money to a friend, or paying a bill via online.  

How Can I Open One? 

To open a checking account, you’ll typically need a government-issued ID such as your passport or driver’s license. Other personal information, such as your date of birth and social security or taxpayer identification number, will need to be provided as well. Some banks also require an initial deposit, which could be anywhere from twenty-five dollars to a few hundred dollars, depending on the account. 

What’s the Cost? 

The cost to maintain a checking account can vary widely. Some accounts, such as Smart Rewards Checking from Harvard FCU, don’t levy a monthly fee or require a direct deposit to get started. Other accounts might charge a higher monthly fee, but offer more rewards—such as a higher interest rate—in return. Some accounts also waive their monthly fee depending on how much money is held in the account. 

Are There Additional Fees? 

Always read the fine print to understand your checking account fees. Most accounts charge an overdraft fee, which you’ll need to pay if you spend more money than you have in the account. Regularly reviewing your account balance can help to avoid overdraft fees! When using ATMs not affiliated with your bank or credit union, you may need to pay an ATM fee. Some accounts also charge a closure fee. 

What About Cards?  

Checking accounts typically come with a debit card, which you can use to withdraw cash from ATMs or make purchases in person and online. Keep in mind that a debit card isn’t a credit—in other words, be sure to only spend or withdraw money you already have in your account! Otherwise, you will face overdraft fees.  

If you do want a credit card, you can apply for that through your current bank or credit union, or via another financial institution. It’s a good idea to connect your checking account and your credit card so that you can automatically pay your credit card bill each cycle. However, when automating payments, review your account regularly to make sure your checking balance can cover your credit card bill. 

How to Choose the Best Checking Account? 

A good checking account should offer straightforward terms, low fees and plenty of no-cost features. Smart Rewards Checking from Harvard FCU, for example, offers no monthly fee, no minimum balance, refunded ATM fees and the option to earn cash back on debit purchases. Other features to look out for include online and mobile banking, so you can pay bills online, send and request money securely, and easily deposit checks using only your smartphone.