My mom banks with Bank of America, she's not very good at managing her money and I'd like as little connection to her acc as possible, as BoA will pull funds from joint accounts if they need to do so.
I'm in NJ, I'm 18, and I'll probably deposit at least 500 or 600 outright. What's the best way to go about opening my first checking account? Thanks!
Is there any risk or disadvantage to a union vs a bank in my situation? I'll still get a credit card etc. right?
Great, I'll get to that in time. thanks for the advice
Yes. Credit unions are local. If you plan to go to college outside of your local region, you'll have to open a second bank account with a bank that operates in that region - or pay fees on any ATM withdrawal you do, (at least almost - depends on the bank's atm policy - but it's pretty likely). It can be a pain. It takes as long as 5 business days to transfer between accounts at separate banks. Also, just cuz it's a credit union doesn't automatically make it any better than a bank. Check their minimum balance requirements, any fees to simply have an account, overdraft fees, and if they offer an overdraft line whether they charge a fee to access. If they have any min. bal fees or requirements, or a fee every month just to have your account open, take your money and run somewhere else. You should never have to pay to have a bank account. Some banks make you, and they're the lice. For bank accounts, they are called "debit cards." Also, FWIW, Capital One 360 offers a checking account that's absolutely phenomenal - no overdraft fees, no minimum balance fees or requirements, the only fee it's possible to get is a $9 returned check fee and they have a linked overdraft account so if you accidentally spend more than what's in your account it goes into the OD. Unlike most banks there is no fee to access the overdraft, and the rate is very competitive at 11.25%. The only drawback is they are a direct bank so if you need any conventional bank services such as cashier's checks (usually security deposits on apartments, etc) it's harder to get them - there are no branches you can just walk into.
This is utterly and completely wrong. Nearly all credit unions are members of a co-op that allows for shared banking. I signed up for a credit union in Alaska at their only branch in the lower 48 in 2002. They opened 4 more branches in Seattle but I moved to Los Angeles. Within 3 years they'd opened a branch in Victorville (100 miles away) which I never went to. After 9 years in Los Angeles I moved back to Seattle and there are now 4 branches within easy driving distance of me... ...but across three states and 14 years I've never paid a fee, transfers are instantaneous and my access to cash is dictated by my bank, not whatever the local branch is. In Los Angeles, I had no less than seven banks within a mile that I could use without any special need. More importantly, three of them had special 'shared banking' lines (Hollywood still pays most people by physical check, so this was important). It's kind of funny that you cast aspersions on credit unions because they're local, but you're recommending a bank with zero physical locations.
I recommended the bank with caveats; it uses the STAR ATM network which provides access to free ATMs cross-country. If you're okay with using an ATM and don't need physical locations, then you're fine with it. It looks like the co-op network uses the same network. Yay! I wasn't aware of the co-op network, which you were, so thankfully, pabst can make an informed decision. Either way, not a big deal, and my points about credit unions and fees still stand. People love to recommend any credit union over any bank, but the fact is, plenty of credit unions charge fees as well and aren't necessarily a better alternative when you can get a fee-free account from a major branch. It's stupid to elevate all credit unions above all banks, but people love to do it.
I am able to get cash across the country with no ATM fees. Like all things finance, it depends on the bank/credit union. The way mine works is that you can go to any credit union ATM and get cash for free. But I use my rewards card for 99% of everything I do so for me this is not an issue.Yes. Credit unions are local.
Credit unions tend to be more conservative with initial accounts. They may hold your money for longer before giving it to you, at least until you've established a banking history. I tried opening an account with a local credit union in LA but, since it was the recession and since it was an entertainment industry credit union, they wanted to hold my money for five days. On the other hand, the credit union I signed up with in 2001, whose headquarters were in Anchorage, would give me access to my money within minutes. After all, I had 7 years banking history with them, including three accounts, a credit line one active and one completed car loan. The irony of credit unions is they're all on the same network... so to deposit checks in the Alaska credit union I went to the LA credit union, who would tell me that my money wouldn't be released for five days, so then I'd pull up my phone and show them that it had already been approved, flip them the finger and walk out. Long story short, Credit Unions offer you slightly better rates and service at the cost of conservative treatment initially... depending on the credit union. That said, both credit unions treated me with a lot more respect than Wells Fargo.
To add a little bit, credit unions often will offer very competitive rates on car and home loans, and many of them bump your account interest rate or dividend if you hold a loan with them. They are certainly more conservative with whom they lend to, but if you're in, they're hard to beat.
I'm going to second b_b on the credit union. A good one will have what he said, plus higher interest rates on money you keep with them, and most are part of a network where you can use other unions ATMs free of fee, along with a lot of other benefits.
follow b_b's advice. I didn't. I used BofA's college kid account or whatever for 4 years because they had tons of branches in LA and NYC and that made it easy. My dad also had an account with them and so transferring money for tuition or emergencies was/would have been easy. Then, when they raised their fees and stuff when I didn't have a minimum balance (beware of minimum balances!!!) I switched to Chase because they were easy, the guys in the local branch were super helpful, and they offered to waive all not-meeting-minimum-balance-fees for a year. I like the ease of bigger banks, even though I hate them. There are ATMs everywhere, they have check deposit on the phone, their apps let you do everything super easily online or from the phone, customer support 24/7, etc. I had some issues with BofA but haven't had any issues with Chase. randomuser always used credit unions and liked them but there can be some issues with ATMs, getting a human on the phone 24/7, etc. if you travel outside your hometown. Here's my advice for credit cards, if you want to dive into that. I would wait a while...or not do it at all... Okay so I only got my first credit card about a year ago at the ripe old age of 24. I watched a lot of my friends get themselves into credit card debt, etc and was terrified. The reality is, credit cards aren't terrifying and are a good thing to have and to use as long as you pay them off in full every month. I'm lucky to be dating a guy with good credit even though I, up until a year ago, literally had no credit. Perks of credit cards: (1) They are infinitely better to use overseas (especially if you have a no transaction fees one) because the credit card company will fight any fraud battles for you. If you debit card gets frauded, you have to deal with it and fight it. But since the credit card is technically their money, not yours, they fight for it. (2) Perks - Discover IT and Chase Freedom both have rotating 5% cash back on things like restaurants or amazon.com or whatever. After a while you can cash out or go shopping online which is awesome. It's like free money (AS LONG AS YOU AREN'T PAYING INTEREST ON A BALANCE OR LATE FEES!!!) Go on nerdwallet to see all the shit credit cards give you. (3) It'll show something on your credit report and help you build credit. All my shitty little apartments in NYC never reported anything to the credit agencies. I had no credit cards. When we were applying to this apartment, I wouldn't have gotten it without randomuser because I literally had no credit. This apparently is fine and expected when you are 18 years old but not when you are 25 years old. :( I have a checking/savings account with Chase so I have a Chase Freedom card (limit: $1200) & a Capital One Quicksilver card (limit: $300). They give the Quicksilver to everyone with a low limit that can be raised in a year or something so it's an excellent starter card. Added bonus: no foreign transaction fees! randomuser has the Discover IT card too. Discover and Capital One give you access to your credit reports which are good to keep an eye on. You can also use Credit Karma (which is free). I use my cards for day-to-day transactions and then pay it off in full every month via autopay. I never spend more that ~30% on each card (apparently that hurts your credit score) and never spend more than I currently have in my checking account. I have weekly account balances for all my accounts automatically email me once a week so I stay super aware of what money is where. So, let's say you open your account and get a debit card. Then you open a Capital One Quicksilver card and they give you a limit of $300. When you are out and about, spend ~$100 on the Quicksilver card. Once you've reached that, use your debit card. At the end of the month, pay off that $100 with your debit card / checking account and start over. Don't get obsessive about perks and all that at the beginning—all this is going to do is help you have credit in 5 years when you need it for that nice "real" apartment or a car lease or whatever. Once you get good and confident and don't fuck yourself into credit card debt and want to spend more than $100/month, then start researching another credit card. Your credit union might have one or you can go on nerdwallet and find one that gives you the perks you want.
Read, read, read this about credit cards. Also good idea nowaypablo to look up your credit score (ballpark, not the formal version). You may think you don't have one at all but you'd be surprised. There are plenty of credit cards, some good starter ones, some specialized ones. All have uses; it's okay to have several cards if you're the kind of person who's really into keeping a budget, tracking their different percentage savings, etc. It's free money for smart people. The thing that matters is never signing up for one that has a yearly fee or will ever have a yearly fee. Bottom line is that if you don't have much money don't spend any. Debit card will do you just fine for a few years.
Something not mentioned below, and sorry that I am late, but get a credit card as soon as you can. Learn how to use it, learn how to pay it off IN FULL ever. single. month. A good part of your credit score is based on how long you have a credit history, and having a card for 3-4 years by the time you get out of school means big savings. Your car insurance, ability to rent an apartment, life insurance rates and much more all depend on your credit score. Go find a credit union. Tell them you want a card to build credit. Mine has a program that hands out cards as long as you have a minimum balance with I think a $25/year fee. Just be aware of that minimum balance requirement, and treat it like law.
I'm about to open a US bank account in the US, so I can have easy access to US funds in various cities (and so I can donate to hubski in real money, not your 72 cents on the dollar Canadian moolah. That info is not helpful to you, but I'll throw it in here anyway since we're talking about banks. Is there anything wrong with Bank of America, providing I don't bank with noway's mom? They have branches where I need them and walking distance from border.
I have a college account with Chase, and Well Fargo. I also have credit cards with both of them. One account I use for bills and the other is miscellaneous spending. I tend to be on top of my very minimal spending, so I have never had a problem with either of the banks.
I have a checking account with Schwab. I'm in love with their services: unlimited ATM rebates on any ATM I use in the world, phenomenal customer service, and even a (really low) interest rate on your checking account. But they don't have brick and mortar locations like BoA does, and their own ATMs. So when I have cash, I deposit it at a PNC ATM where I also have an account with and then do a transfer. For the most part I deal with my cash directly deposited into my Schwab. They also have an app that I use to deposit checks made out to me. So I endorse Schwab if you're ok with the little hoops you have to jump through if you have cash you want in your bank.
I just turned 18 a couple months ago, but I've had a checking account with a local bank for coming up on a year. Maybe I should have used a credit union, or a national bank, but my folks use local banks, and I've used them too since I got a savings account with my precious $200 when I was 12. Personally, I like having a couple local locations where some friends might work, and not having to choose from dozens of options. I've got a joint account with my dad. That way, he can access it and just deposit money if something comes up while I'm away in college. It's also got survivorship, so if I were incapacitated or dead, he could access the money there. Hate to be a downer, but the world's a fucked up place, and I'd strongly encourage you to at least set up survivorship for your account. If you choose another bank, you should be able to set up a joint account with your mom without worrying about BoA. Just make sure you set clear boundaries with her about access. I'm not sure how much you plan to eventually put into the account beyond the 500-600 you mention, but you may also want to start looking at an investment account. Because you won't make any sort of interest on the checking. If you don't need the perks of a checking account (like checks and a debit card), maybe look at savings accounts as a way to basically store cash and make a bit more interest.