- Opening a bank account requires research and strategy to get the most value
- There are many options, and you have to consider the minimum balance and the APY
- In some cases, you can even open an account for your young kids to help save money
- There are many accounts today that allow you to take advantage of digitization and low fees
Opening a bank account is essential to becoming financially healthy and getting organized for all your goals. However, when choosing a bank account, you have to consider a variety of different factors.
First, you need to think about whether or not you want checking or savings. Additionally, you have to consider the fees, the offers, and maybe even cash bonuses that are available to you.
We will talk about the essential factors you need to consider when opening a bank account and how to make the best decision for you regarding your finances and your money. Let’s get into the account types available to you.
Decide Your Account Type
One of the first things you should do before looking into the best bank accounts is to decide your account type. There are checking accounts and savings accounts. Your checking account is typically used for more general usage, and it does not occur in interest that allows you to save money over time.
This can also be attached to a debit card. However, you also want to consider a savings account because these can accrue interest over time and allow you to save money over many years.
How to Choose the Right Account
When choosing the correct bank account, you want to ensure that you find several factors to be the most suitable situation for your finances. Here are some things to consider to ensure that you choose the correct account and do not make a poor decision.
Consider Your Fees
One of the most important things people often forget to look at is the fees. Check to see the low balance fees for your checking account and the interest rates or fees for your savings account. You want to make sure that you choose the correct bank account, and this will help you on the path to becoming more prepared and more aware of what your options are.
Minimum Account Balances
You want to make sure that no matter what account you make your own, find one that has an appropriate minimum account balance. The minimum account balance means you must put a certain amount of money into the bank account at any time. This is important because otherwise, you can face fees that risk losing your money and penalizing your account.
Your APY Rate
This is your annual percentage yield, which is essential for any bank account you want to open. Unfortunately, this typically is referred to only for savings accounts, which is necessary for compounding interest, collecting more savings over time, and several other factors that help you to get the most out of your bank account.
A very significant thing that you should consider is the customer service behind the bank that you would like to work with. Typically, some banks suffer in terms of customer service.
Therefore, doing your research and finding a bank with optimal customer service and support would be great for you and allow you more opportunities and comfort, knowing that your money is safe.
The next thing you should consider, especially if you’re on the go, is the digital experience. It is not often that you’ll likely go to the bank, so it’s vital that you know that your digital experience will be as great as possible and seamless, organized, and efficient. Be sure to look at the reviews and see whether or not this will be a hassle or a breeze.
Think About Cash Bonuses
Sometimes, bank accounts will offer you some cash back just for opening up your account. First, look at the minimum deposits, the account specifications for a minimum time open, and direct deposit information.
This is all-important to determine whether or not the cash bonuses and the potential benefits outweigh the credentials necessary to retrieve these benefits.
Best Bank Accounts to Open in 2022
Now that you have thought about these concerns, it’s time to think about where to open your bank account. Fortunately, there are numerous options and you don’t just have to go to the nearest local area bank. In today’s digital world, you can be selective. So here are the best bank accounts to open in 2022.
Best Overall Bank Account
The best overall bank account is Axos, which you can open online, and there’s even a promo code to earn a $100 bonus. Additionally, the annual yield is 1.25%, and you only need $50 to open it up.
Best Overall Credit Union Checking Account
PenFed it’s also a fantastic choice for a checking account, and it has an APY of .15% or 35%. All you need is $25 to open it up and a monthly maintenance fee. I’m at the most $10, but it’s still a great option to open up, and it’s been ranked highly by Forbes advisors.
Best Bank Account for Cash Back
The Discover Bank Cashback Debit Checking is also a fantastic option because you can earn up to 1% cash back on monthly purchases. You also don’t need a certain amount of money to open it up, and there’s no monthly maintenance fee.
Best for Purchase Protection
The TIAA Bank Yield Pledge is another excellent account with a .10% APY. You also need $100 to open it up, and you also have no monthly maintenance fee attached, so it is excellent to use! This is also digitally accessible via applications and a web platform.
Best for Big Bank Checking
The Citibank Access Account Package is also a fantastic option for those who want to work with a big bank. These have no APY and also no minimum deposit required. However, there is a nominal maintenance fee of $10 per month.
Best Bank Account for Teens
The CapitalOne bank accounts can be fantastic for those looking to help set their kids up with their bank account. With no monthly fees or account minimums, you can help your kids set up with savings before they turn 18!
What Account Will You Open?
Opening a bank account can be daunting, but hopefully, we provided you with all the information you need to make great financial decisions for you and your family.
For more information about bank accounts and all things finance, feel free to check back on our website frequently to learn how to set yourself up for financial success in the future.