Open a Bank Account

Personal finance begins with a bank account. When you turn 18 (or 19 in Alabama/Nebraska), you are legally considered an adult and become eligible for a bank account under your own name. There are two main types of bank accounts: checking and savings. A checking account is designed for everyday use such as ATM withdrawals and bill payments. A savings account is designed for long term savings which is why you will earn interest on your savings balance. However, savings accounts come with withdrawal restrictions that checking accounts do not have. We highly recommend having both types of accounts.

Checking AccountSavings Account
OverviewDesigned for everyday money transactionsDesigned for earning interest and saving money
Min. BalanceDepends on bankDepends on bank
FeesDepends on bankDepends on bank
Withdrawal RestrictionsNoneUsually allowed 3-6 withdrawals per month with restrictions on how much of your balance you can withdraw.
Interest EarnedLow or noneYes. Interest rate depends on bank
AccessAnytimeUsually have to transfer money to checkings account before using
Other FeaturesOverdraft, external transactions such as bill paymentsOnly offers internal transactions such as transfering money to a different bank account

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