Today’s to-do list: open a bank account, aka, adulting. “Ugh,” you think, “why isn’t this something that was taught in school instead of the Pythagorean theorem?” Not to fear we have the inside scoop straight from the horse’s mouth (we’re bankers after all). Banking 101 is now in session; so grab your pen, paper, and can-do attitude and follow along as we go over the basics for opening your first bank account. Easy as .

Which Account Type is Right for You: This part is crucial for determining which account types to pay attention to. A demand account is any type of account that lets you have access to your money on demand. Common demand accounts include checking accounts (designed for ease of check and debit card use), money market accounts (designed to give you money market interest rates on your balance) and some savings accounts (designed for long-term saving of funds). A Time Account commonly referred to as a Certificate of Deposit or CD, is designed to lock up your money for extended periods of time. The financial institution issuing these products often offer higher interest rates depending on the length of time the account is locked up for. The funds in these time accounts are not available to withdrawal on demand without paying a penalty.

What Will You Need At Account Opening:

• Government issued photo ID – State issued Driver’s License or ID (preferably in-state), military ID, Passport, or Mexican matricula consular card.
• Full knowledge/proof of Social Security Number. Although not always needed, it is best to have your SSN card on hand if the banker requests it for verification. If you don’t have a SSN or card you may have to fill out additional paperwork or have a parent or guardian sign on your behalf.
• Opening deposit. Some account types require a minimum balance and you will need to discuss this beforehand. Most banks accept payroll checks, personal checks, and money order/cashier’s checks, but cash is king.
• A current email address. For online/mobile banking registration.
• General contact information. Physical and mailing (if different) address, primary phone number, general info about your current employer, and previous address and employer info if you have recently moved.

Will They Pull My Credit?: It is common practice for financial institutions to do a “soft pull” of your credit. This type of credit pull provides information about your credit score and any outstanding debts and previous charge-offs. A “soft pull” does not affect your credit score, however, if you have a lot of “soft pulls” within a six month period it may be a signal of “shopping around” and may make some lenders nervous.

What’s The Deal With All The Paper?: Upon completion of the account opening process, you will be handed a copy of disclosures and general information. These disclosures will include a fee schedule of all possible fees that could be assessed to an account and how they might be accrued, a rate sheet – with the current interest rates paid for your account, and all general and legal information as related to your account. We recommend that you keep this paperwork in a safe and secure location and refer to it as needed. If you feel you do not need the paperwork we ask that you fully shred the documents as to not expose any account information that could become compromised by a fraudster.

The Account Is Open…Now What?: Congratulations you have officially opened your first bank account! Now you may want to set up online/mobile banking to keep track of your account on a daily basis. You can also use the routing and account number to set up direct deposit through your employer. Any new debit cards (make sure they have been activated first) can be used to set up recurring payments or you may inquire about a bill pay service through your financial institution.

*Remember to keep all pin numbers to yourself and limit sharing of account information outside of your financial institution.*