To Open a Checking Account...
Are you thinking about opening a checking account? Here are some facts
you can use. You will find several kinds of checking accounts at the bank.
Choosing the right account is important. Most banks have special accounts
for older people and accounts with low minimum balances or free check
To open an account, you need to show who you are, your Social Security
number, and where you live. A driver's license or state ID will do all
three things. If your address has changed, the bank may accept a utility
bill to prove your address.
Every bank will check your banking record. And many banks will also check
your credit report. After banks see your report, they will decide whether
you may open an account. Banks will reject you if you still owe a bank
for bad checks you wrote. You can clear your bad banking record. Visit
your old bank. Ask them what to do to settle your old account. Banks will
also tell you who to contact if you have questions about your credit report.
Very few banks offer special accounts for people on public aid. These
accounts may offer good deals on checks and low fees. Try to find the
bank with those special accounts. You will save money and still get the
same bank's service.
Many accounts charge you a monthly fee. Others require you to keep at
least a certain amount of money in the account at all times. If the balance
in your account drops below this amount, you will be charged a fee.
You also have to know the other fees banks charge. Keep track of these
fees so you won't get in trouble later on. Banks often charge fees for
printing checks, using the ATM, writing checks, and buying money orders.
Banks charge extra fees for closing an account, bounced checks, stop payments,
returned checks, balance inquiries, copies of monthly statements, and
helping you balance your account.
Keeping a good banking record can be a hard job. Ask yourself these questions
before you open a checking account:
- Do you know how to balance your checkbook?
- Would you have enough money to keep your minimum balance and cover
- Do you know how to write a check?
- How many checks do you write in a month?
- Do you know the banks' rules on fees and services?
Find out the answers before you open an account. Banks may help you with
balancing your checkbook and writing a check. Also, you can learn about
fees and services from banks' brochures.
If you have difficulty with English, you may want to bring a friend who
speaks English with you. Banks may have staff who speak different languages.
Don't you just walk away just because you can't understand English. You
will find some help and banks will do their best to meet your needs.
Savings accounts often require lower minimum balances than checking accounts.
If you write just a few checks each month, you may want to open a savings
account and buy money orders instead.
A checking account can be a very good way to manage your money. But it
takes time and effort to make it work. It is your choice whether to open
a checking account or not. With this information you can prepare before
you decide to open an account.
Prepared by Soo Jung Lee, Intern
with the University of Illinois Consumer & Family Economics, W. Rogers
Park Extension Center, Chicago, IL
Edited by Kathy Reuter, Consumer
and Family Education, Countryside Extension Center.
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