First Bank Account: What You Need to Know to Keep it in Check
Friday, March 6, 2015, 6:00 AM | Leave Comment
In today’s world, it makes sense to have a bank account to help manage personal finances. Even though cash is widely accepted as a form of payment around the world, having a bank account simplifies financial transactions and is often one of the first steps you’ll take into adulthood.
Almost all standard bank accounts offer checking accounts that are easily accessed with checks or debit cards.
Savings accounts and checking accounts provide a safe, convenient way for individuals to keep track of their money.
Choosing the right bank or other financial institution depends on personal financial needs.
A bank’s reputation should play a key role in the selection process, as well as the type of services offered.
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Checking Accounts
Most people opening a bank account for the first time choose a checking account as the primary way to deposit and access their funds.
Most banks charge a low monthly fee for check-writing services and require a minimum balance, but also offer free debit cards for these accounts.
Most debit card transactions are free and allow the account holder to access ATM services as well.
Many banks charge fees for using ATM machines at other banks besides theirs. The best way to properly manage a checking account is to write down every transaction in a check registry or ledger, at the time the purchase is made.
Saving receipts also helps keep accurate records of spending. Online banking is available for monitoring accounts on a daily basis.
This way you won’t have to keep track of every receipt unless you want to.
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Regular Savings Accounts
First-time account holders should consider opening a savings account as well as a checking account.
A good rule-of-thumb for building a substantial savings account is to try to save about ten percent of a monthly paycheck.
Keep a record of each deposit and withdrawal from this account. If you can, only dip into it for emergencies or big budget purchases like a car or home.
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Passbook Savings
This simple savings account uses a passbook for all transactions, while the bank teller records all activity on the account.
This is a fail-proof method for those who do not make regular deposits or withdrawals. Perfect for businesses or people who want to just keep a saving account separate from the rest of their funds.
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Easy Money Management Tips
A debt relief center in Calgary, Hudson & Company Insolvency Trustee Inc, say one of the biggest problems first-time bank account holders encounter is losing track of daily spending habits and overdrawing on an account.
This is a costly mistake since banks charge high fees for insufficient funds.
Monitoring bank balances on a daily or weekly basis is a great way to organize finances.
Online banking makes it more convenient to consistently manage all accounts and to detect discrepancies before they become a problem.
Anyone can successfully manage a bank account with a little common sense and effort. Managing personal finances begins with making the smart decision to open an account. It serves as a tool in developing long-term financial security and independence.
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