Update on 2024-12-11

The First Bank Account in Your Life

Economic affairs started a long time ago with the appearance and development of craftsmanship. Artisans started to create different items and exchange them by means of money. Eventually, the question came up about where to keep savings safely.

The possibility of keeping earnings safe emerged with the appearance of banks and credit unions that offered their services, promising certain parts of interest to everyone who agreed to deposit their funds to bank accounts. If you are in need of some extra money, you may apply to Cash Loans App.

The Reason to Open Your First Bank Account

Many people keep their finances hidden in some containers, such as plastic bottles, moneyboxes, or coin jars. The problem is that nobody can carry such piggy banks with them everywhere. There will always be a chance that your earnings can be lost or even stolen.

However, if you have a credit union or bank account, you will not have to worry and be afraid about such issues. It is not unusual when children open their first special account through guardians or parents. Such type of an account usually is referred to as a custodial or joint account. It means that both owners of the account will have access to it for deposit or withdrawal.

Types of Accounts

There are two most appropriate accounts that you may choose as your first one:

Checking Account: This type of account allows you to purchase anything with the help of your debit card. If you use your debit card to buy something, the finances will be automatically withdrawn from your bank account. It allows you to not have your cash with you all the time.
Savings Account: This type of account provides the possibility to save your money and accrue interest. In general, a credit union or bank repays you a small amount (percent) of the finances kept in your account. You just earn money without any effort. However, in case you decide to withdraw money from the account, you will need to use an ATM or your financial establishment.

What is Required to Open an Account?

The process of opening your first account at a credit union or bank is rather simple. It takes some amount of money to deposit, your guardian or your parents, and your ID. Such ID can be either your certificate of birth or your SSA Card. Modern banks allow online registration. If you decide to go in person, you may attend any bank branch and apply to the tellers. The tellers can prompt you on how to get the best benefits from your account, and you may ask them any related questions.

The Level of Safety of Your Money in Your Account The government insures your money, and therefore, it is completely safe in a financial institution. The NCUA and FDIC guarantee that all deposits up to 250 thousand USD per account will be secure. It means that you will be able to get your money despite any possible issues that can happen in your life.