How to Get Started With Your First Bank Account

When the time comes to open your first bank account, the process might seem daunting.
















When the time comes to open your first bank account, the process might seem daunting. From figuring out the type of account you need, to where you will open your account and what you need the account to do for you, there are plenty of choices you need to make.

However, by answering these questions, you can simplify the process—and opening your first bank account will be a breeze.

 

Why Should I Open a Bank Account?

Whether you’re still in school and haven’t previously had a bank account or relied on banking alternatives like check cashing and prepaid cards, bank accounts offer several benefits.

Security Benefits

If you’re used to using cash or prepaid cards, you don’t have many protections working in your favor if you suffer a loss. Losing your wallet means your cash and debit card are gone, likely for good. With a bank account, you have legal protections that can help protect you from loss.

For example, if you lose your debit card, the Electronic Funds Transfer Act (EFTA) can limit your liability. While cash may be gone if you lose it, a debit card can protect your money in a way your wallet cannot.

Money on deposit at a bank or credit union is also typically insured, unlike cash in your wallet. If you have an account at a bank, your deposits are protected by FDIC insurance or NCUA for Credit Unions for up to $250,000 per depositor, for each account category, in case your bank or credit union fails.

Financial Relationship Benefits

One of the most significant benefits of opening your first bank account is starting a financial relationship with your bank.

A bank account opens the gateway to future financial products to guide you through every stage of life, from credit cards and loans, to financial support should you choose to start a business. Your bank account also supports other financial capabilities like funding retirement accounts, receiving your paycheck by direct deposit, cashing a check without being charged a fee for doing so or paying your household bills safely and automatically online.

 

Where Should I Open My Bank Account?

The next step is deciding where to open your account. Brick-and-mortar banks, credit unions and online banks are some of the most popular choices. But how do you decide which is the best fit for your needs?

Brick-and-Mortar Banks

These banks range from the big names you see in cities across America to smaller regional banks specific to certain states and locales. A brick-and-mortar bank could be an excellent choice for someone who values visiting a branch in person and having a wide network of fee-free ATMs at other bank branches in their community.

Credit Unions

Credit unions are membership-based financial institutions. When you join one, you become a part owner. You usually have to have a professional relationship with an eligible company or organization to qualify for membership.

Online Banks

Online banks typically do not have a physical location you can visit. If you prefer a mobile or fully digital experience, you may find that an online bank gives you everything you need—from fee-free accounts with no minimum balance, to waived ATM fees and mobile check deposit.

 

What kind of account do I need?

If you have a preferred financial institution in mind, now’s the time to review their products to find your perfect match. If you have a specific type of account you want to open with particular features, you can use that information to help choose the best home for your accounts.

For your first bank account(s), you will likely want to open a checking account and, in some cases, a savings account.

Checking Account

A checking account—which many people simply refer to as a bank account—gives you a financial launchpad. You can receive payments, like your paycheck, via direct deposit. You also can send payments to pay your monthly expenses like rent, utilities, gas and groceries either directly from your account or use your debit card when you’re out and about or shopping online.

Many banks offer entry-level free checking accounts to help get you started. Some may require you to meet certain monthly minimums like an account balance or direct deposit of your paycheck to keep the fees at zero. With all checking accounts, you will want to review all the terms and conditions for the account, including fees, before opening your account.

Savings Account

Opening a savings account in conjunction with your checking account could be a smart choice for those who want to build their emergency fund or save for a larger goal like a major purchase such as a house down payment or buying a car.

Whether you choose to open a savings account at the same institution as your checking account is entirely up to you. Whichever option you choose, moving money into savings can be automated so you move a certain amount at regular intervals from checking to savings (never see it, never miss it).

 

What Do I Need to Open a Bank Account?

Once you decide where you will be banking and the type of account you want to open, you’ll need to provide some information to the bank or credit union along with your account application:

  • A government-issued ID—this can be a driver’s license, state-issued ID card, military ID or passport.
  • Proof of your Social Security number—this can be your actual Social Security card or, in some cases, a recent pay stub, W-2 or tax return showing your entire number.
  • Proof of address—You will likely need at least two documents verifying your home address (be sure to ask your bank for their requirements). Proof can include a recent utility bill, cell phone bill or a copy of your lease.
  • Opening deposit—if you need to make an initial deposit to fund your account, you will need to bring this with you in the form of a check or cash.

How Do I Start Using My Bank Account?

Here are some steps you can take to begin enjoying the benefits of having your own bank account:

  • Set up direct deposit with your job. Ask your employer for a direct deposit authorization form to have your check deposited directly into your bank account every payday at no cost.
  • Activate your debit card. Once you receive your debit card, follow your bank’s instructions to activate it. This process will include choosing a personal identification number (PIN) to use when making in-person purchases.
  • Link your debit card to a digital wallet. You can connect your debit card to digital wallets like Google Pay, Apple Pay or Samsung Pay for a touch-free in-store payment experience (which also helps when you forget your wallet at home).
  • Set up bill pay. Your bank account will likely come with the ability to set up payees in their online bill pay system. You can search for utilities and companies already set up to receive digital payments or set up your own payees and automate bill payments.
  • Set up an automatic savings plan. If you’ve opened up a savings account, you can now set up an automatic savings plan and transfer a set amount from checking to savings at regular intervals.
  • Utilize mobile check deposit. With your bank’s mobile app, you can take photos of physical checks and deposit them remotely without ever having to visit a branch.

Learn more about the checking and savings accounts West Gate Bank offers, and open your new account online. You can also contact any of locations with questions before you get started.