How To Pick A Bank

There are a lot of bank options, so don't get overwhelmed.

My suggestion is to find a bank with lots of ATMs in your area, or at least with ATMs that are convenient for you to access. Generally, your bank will not charge you for using its own ATM (but check to make sure before opening your account), but using another bank's ATM can be costly. First, the owner of the ATM will likely charge you a fee, and your home bank may charge a fee as well. The safest way to keep fees down is to make transactions at your home bank's ATMs.

Hopefully, you will have several good candidate banks to consider, with ATMs and/or branch offices that are convenient for you. Stop by these banks and ask for literature about their basic checking account options. The banks will probably offer special deals (i.e. lower fees, more benefits, etc) if you can maintain a certain minimum balance. If you don't think that you can maintain the minimum balance, that's okay. Even if the best account that you can find has a $10 per month fee, that is still better than $500 or so per year that you may be paying in check cashing and money order fees.

One other thing to consider -- based on where you live or work, you may be eligible to join a credit union. Credit unions are a good altermative to banks, often with lower fees.

Start getting your financial life in order ... if you don't have a bank account, get one opened right away. Arrange to have your paycheck directly deposited in your account, and you will immediately realize the conveniences of banking. Having a bank account will also help you get your tax refund more quickly and more securely ... but more on that in a future entry.