STC Banking 101
WHY should I open an account?
The days of storing your money in the mattress are long gone. Many banks offer Checking and Saving Accounts that are customized to meet your needs and save you money. REMEMBER: Monthly and minimum balance fees can add up to a hefty sum monthly and yearly, so remember to select the account that best fits your needs.
The biggest advantage to having a checking account is Direct Deposit. Financial institutions will deposit your paycheck every pay period directly into your account making it readily available for you to use and saving you a trip to the bank.
Think of a savings account as your rainy day fund. Some employers allow you to allocate a percentage of your direct deposit into a savings account not just for safe keeping, but to encourage good saving habits. Financial Institutions have developed rules such as limiting your transactions per month or charging a monthly service fee after you have exceed the minimum withdrawals per month. These stipulations are not to discourage you from opening an account, but to encourage you to save for the future.
WHAT you will need to open an account:
(Check with the financial institution about their specific account verification procedures.)
All accounts can be opened jointly or individually. Each person would have to provide their personal information:
- Social Security Number
- Date of Birth
- Driver’s License
- Proof of Residency (Utility Bill, Paystub, etc.)
- Minimum Deposit
HOW do I manage my account?
Now that you have your accounts, maintaining them from this point on is important. Keeping your accounts in good standing creates a financial relationship between you and your financial institution. This works in your favor when you are in need of additional services such as: mortgage loans, auto loans, or retirement accounts.
Overdrafts: Never write a check when you do not have the money in your account. Overdrafts can cause a chain of events and cost you a pretty penny in the end. Try to avoid them at all cost and put your check register to good use by tracking your expenses.
Balancing your Account: Account balancing is similar to keeping track of a budget although a budget may include more than one financial account. Make sure to compare your transactions with your monthly statements so that you do not miss anything. That extra money in your check register may actually belong somewhere you may have missed.
For more information on Banking, please visit:
- Practical Money Skills – Finding the Right Institution