Career Article 137:
Financial Basics: Bank Accounts

By Tamara Dowling, CPRW

Getting a bank account is easy. However, there are some tips that can help you get a better deal, avoid fees, and save money.

1. Shop around for the plan that is right for your needs. Be sure to ask about all the fees associated with your account. If overdraft protection is offered, find out what fees or interest is charged. Know what minimum balance is required and what happens if you don't maintain it.
2. If your employer offers direct deposit, sign up for it. Some banks give incentives to those customers using direct deposit.
3. Ask your bank if they can transfer a fixed amount to savings each month. If you are 20 years old and you save just $10 a week, you will have saved over $200,000 by age 65. Don't get an ATM card for this savings account so it is not easy to access your savings in a moment of weakness.
4. Learn how to use online banking. It is an easy way to reconcile your bank account.
5. Reconcile your checking account once a month. Check your bank statement against your checks, withdrawals and deposits. Dispute errors immediately, and in writing.
6. Be sure you have funds to cover your checks at all times. Don't forget automatic withdrawals, ATM and debit card charges. Bounced checks can be very expensive.
7. If you use a debit card, be sure to check for hidden charges. Some grocery stores, gas stations, or other retailers may charge you a "foreign ATM" fee.
8. ATM withdrawals are very convenient. However, watch out for "foreign ATM" charges when you are not using your own bank's ATM.

Related articles:
Budgets for Recent Graduates
Writing Checks and Balancing Your Checking Account