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5 Things You Should Know When Opening a Bank Account

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Gone are the days when people store their money under a mattress. Today, the majority of your money is likely to be held in a bank. Since not all banks are created equal, you will want to know what you are looking for when you go to open a new account.

Check For Online Banking Options

You will want to make sure that you open a bank account that provides you with mobile access. This should provide you with an application that you can download onto your smartphone as well. This will make managing your money much more convenient in the long run.

Understand the Fees

Before opening any bank account, check to see what the fees are. Some will charge a monthly fee if your balance falls below a certain amount. It is important to know what that is. Others will charge you if you overdraw your account or are late with a credit payment. Make sure you know these fees upfront and that you are comfortable with them. This is where shopping around can save you some money.

Insurance is Essential

You work hard for your money, so you want to make sure that it is protected. When you entrust your money to any bank, you will want to check that it is insured. This means that your money should be backed by the government up to a certain amount. Banks do fail from time to time, but an insured account will mean that your money will come back to you in the unlikely event that does happen.

Look for Options to Send Money to Others

As the world becomes increasingly globally focused, it is important to be able to transfer money to people around the block and across the world. This is why you will want to have an account at a bank that allows you to transfer money to others with ease. You will want to check for this option when you open your account. By linking your account to a service, you can then more easily move your money around online and with minimum hassle.

Know What Type of Account You Want to Open

Banks actually offer many different types of accounts, so it is helpful to know which one you need before you set out to open one. The most common one is a current, or checking, account. This will allow you ready access to your money in a number of ways. A savings account is designed to do exactly what its name implies. Keep in mind that you typically cannot withdraw money from your savings account via an ATM machine, but this policy will differ by bank. There are other accounts that can be opened at a bank, so understand what you need and then ask the bank prior to depositing any money.

Understanding these five items will help you to make a wise decision when opening a bank account. Remember that no account out there today is likely to please everyone. You need to know your situation and what your financial needs are. When you know that, then you will be able to find the bank that is best able to serve your needs.

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