How to pick a checking account

Ready to dive into the exciting world of checking accounts? We get it — talking about different kinds of checking accounts isn’t exactly exciting, but becoming CEO of your own money is a great feeling! 

Whether you're just starting out with your first job or looking to manage your finances better, having a checking account can make a big difference in your money management journey. With so many options in choosing your first checking account (or a new one!), it’s important to find the checking account features that meet you where you are and fit your needs.

Let's do some Banking 101 and break down the different types of checking accounts, what you should look for, how to avoid checking account fees, and some common things to be aware of. Then, at the end, we’ll tell you how to go about opening a checking account.

Basic accounts

Basic accounts are like a plain white T-shirt — no-frills, straightforward, simple, and they get the job done. They’re perfect if you just need a place to deposit your paycheck and pay your bills using online BillPay or the debit card issued to you by your bank.

What to look for:

• Low or no monthly fees. Some banks waive fees if you set up direct deposit or maintain a minimum balance.
• Convenient ATM access. Make sure there are plenty of ATMs near you to avoid those pesky out-of-network fees.

Things to be aware of:

• Hidden fees. Watch out for fees that charge you for things like paper statements or using out-of-network ATMs.
• Low interest rates. Basic accounts often don’t offer interest, so your money won’t grow.

Student accounts

A student account is like a backpack in that it’s made for students and it’s perfect for carrying the essentials without extra weight. There are perks, yes, but these accounts are ultimately pretty fuss-free. Designed specifically for students, these accounts often come with perks like no monthly fees and free ATM access — making it easy for students to do their banking.

What to look for:

• No minimum balance requirement. As a student, you shouldn’t have to worry about keeping a certain amount in your account.
• Fee waivers. Look for accounts that reward you for good money management.

Things to be aware of:

• Limited features. Some student accounts might have fewer features compared to regular accounts.
• Age restrictions. These accounts might convert to regular accounts with fees once you’re no longer a student. Make sure you ask about what happens when you’re no longer in school.

Online-only accounts

Online-only accounts are like streaming services — easy to use from anywhere, but you don’t actually have to leave the house to use them. These accounts are offered by digital banks and come with lower fees and higher interest rates since they don’t have the overhead costs of traditional banks.

What to look for:

• High interest rates. Some online banks offer interest on your checking balance.
• User-friendly app. Make sure the bank’s app is easy to use and has all the features you need, like mobile check deposit and bill pay.

Things to beware of:

• Limited physical access. If you need to deposit cash, it might be more challenging with an online-only bank.
• Customer service. For the most part, with online-only banks, you can’t easily run to a branch to ask questions, which can give you the feeling of having no support. Ensure the bank has good customer service options, like 24/7 support. 

Rewards accounts

These accounts have all the features of a typical checking account, but with extra perks — like premium interest, potentially fewer fees, or cash back — that you can earn by meeting conditions like maintaining a higher balance, using direct deposit, or other good checking behaviors. It’s like giving yourself a little treat for being smart with your money.

What to look for:

• Reward structure. Understand how the rewards work and if they align with your spending habits.
• No or low fees. Ensure the rewards aren’t offset by high fees.

Things to be aware of:

• Balance requirements. Some accounts require you to maintain a certain balance level to earn rewards.
• Complex terms. Make sure you understand all the terms and conditions to benefit from the rewards.

Joint accounts

Perfect for power couples (or roommates and friends), these accounts allow multiple people to access the same account — much like a joint streaming service account.

What to look for:

• Easy account management. Look for features that make it easy to track who’s spending what.

Things to be aware of:

• Shared responsibility. Both account holders have equal ownership over the account and the funds it contains, meaning you both have the ability to withdraw from, transfer to, or even close the account. Both parties are also responsible for any overdrafts or fees.
• Privacy concerns. Be aware that all transactions are visible to both parties.

How to pick a checking account

No matter which account you’re leaning toward, there are a few things you should always do to ensure you’re getting the best fit.

• Compare fees. Always check for monthly maintenance fees, ATM fees, and overdraft fees.
• Check the interest rates. Some checking accounts offer interest, so it’s worth comparing rates.
• Look for features and perks. Some accounts offer perks like early direct deposit, cash back, or discounts on other bank services.
• Beware of minimum balances. Will this account require you to keep a minimum balance in the account to avoid fees?
• Read the fine print. Make sure you understand all the terms and conditions before signing up.
• Read reviews. Check out what others have to say about the banks you’re researching.

How to open a checking account

Hopefully you now know which kind of account fits you best. With that established, you can begin to open your checking account! Here are some instructions for opening a checking account:

1. Gather required documents: What do you need to open a checking account? Here’s a list of items you’ll need to open an account:
   • Identification: A government-issued photo ID, such as a driver’s license or passport.
   • Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN): This is used to verify your identity.
   • Proof of address: Documents like a utility bill, lease agreement, or mortgage statement to confirm your residence
   • Contact information: Your full name, address, phone number, and email address.
2. Complete the application: Whether you’re applying online or in person, you’ll need to fill out an application form with your personal details. If you’re opening a joint account, both account holders will need to provide their information.
3. Make an initial deposit, if required: Some banks require an initial deposit to activate your account. This amount can vary but is typically between $25 and $100. It’s important to know the account minimum to avoid any fees from your balance dipping below that threshold.
4. Set up account features: Once your account is open, you can set up direct deposit, order checks if you need them, and download the bank’s mobile app for easy access to your account.

By following these steps and having the necessary documents ready, you can open a checking account smoothly and start managing your finances more effectively.

Final thoughts

Choosing the right checking account is all about finding one that fits your lifestyle and financial needs. Take your time to compare options and don’t be afraid to ask questions. Our people are always here to help you find the perfect account for your needs!