Considerations when opening your first bank account will vary depending upon both your individual circumstances and the way in which you wish to use the account. The process need not be a lengthy or complicated one but it is important to get it right and to get the account which is best suited to you, particularly in the short term.
Opening your first bank account may be something which is undertaken at the point of going to college or university. In this instance, it would be important for the individual to look around the banks in their locale to see which one offers specifically the best deal for students. Banks are very keen to attract students, as they take the view that if they impress a student during their studying days, they are likely to retain the student’s future business, which may include such as a mortgage, personal loans, credit cards and other services which are highly profitable for the bank in the long term.
When considering which facilities a bank offers in this respect, it is advisable for the student to look at such as charges for special services, whether an overdraft is offered and if so, is it interest-free to any extent. The student may also wish details of such as telephone and Internet banking facilities and whether the bank actually has a branch near their chosen college or university.
If you are opening your first bank account on the occasion of having secured your first job, you may wish to similarly examine the different options available to you but are more likely to be looking for different initial services. The suitability of the bank account for receiving your salary credits is likely to be the most important factor. It may be also that you require a small overdraft facility in order to tide you over until the occasion of your first payment from you new employer. The charge – if any – for this service would therefore be important. What it is always a good idea to avoid in these circumstances is allowing the bank to sell products to you which you do not need in the short term. One example of this would be a credit card, which is never a good idea for anyone just getting used to handling their own finances. Getting in to credit card debt at this formative stage can be a very inauspicious start to prudent financial management.
The message to anyone opening their first bank account is therefore to take a quick look around the competition, evaluate your options and make your decision on an informed basis.