Consider one that is convenient — one that’s located close to where you live, go to school or work. Or, consider one that has an ATM machine that is convenient for you to use. This is especially important since ATMs from other banks will charge you as much as $2.50 to use their machine on top of the $1.50 your bank charges you to use an ATM machine from another bank. Those little $4.00 charges add up fast!

Think about whether or not to choose a larger bank or a smaller one. Larger banks allow you to do much of your banking online, have a number of ATMs throughout the area and are often a little more flexible about processing transactions quickly. However, smaller banks may have perks like fewer fees and better customer service.

There are interest-bearing and non-interest-bearing accounts. Interest-bearing means that you get paid a percentage of the balance you maintain in your account. It’s usually around 1 or 2%. At the end of the year, you may earn around $50 this way, if you keep a decent balance in your account (though, for those of you who work, that becomes “taxable income” which is reported to the IRS; so, you will get taxed on it in April). HOWEVER, these accounts usually have fees associated with them and many charge you if you drop below a minimum balance (sometimes this minimum balance may be as high as $500!). A nice option for those just starting out is a “free-checking” account. These are accounts that do not pay you any interest, but they also generally have significantly less fees associated with them and no minimum balance to maintain.

What are the fees associated with this account? (There shouldn’t be more than maybe a monthly charge of $5.95 which is usually waived if you use direct deposit for any paychecks you receive). Then, ask the question again: Are there any other fees that I should know about? (They don’t always tell you everything the first time you ask---make them spell out each one to you).

Is there a minimum balance that needs to be maintained? (It is best to get one with no minimum balance requirement unless you are good at keeping your money in your account and not needing it).

How many ATMs do you have in the area and where are they located? (Look for ones that are easy for you to get to and are located in well lit, public areas).

What are your hours of operation and are you open on Saturdays? (You want to belong to a bank that you can access whenever you need to).

Are there charges for coming into the bank and doing my transactions with tellers? (You’d be amazed at how some banks actually charge you for coming inside).

How long do you hold checks before they clear? (Many banks vary on this. There shouldn’t be more than a one or two day hold on checks less than $10,000.00).

Do you offer Visa/Mastercard Check Cards? (This is a great service if you are good about knowing what your current balance is. If you get one of these, make sure you ask about the fees associated with it. Some banks charge you a transaction fee if you use it as a “debit card”, but don’t charge you anything if you use it as a “credit card”. Either way, the money comes directly out of your checking account, so you can only spend money that you actually have).

When you find an account that suits your needs and is pretty much FREE, then sign up and enjoy being fiscally responsible! You can order your checks right there, but make sure to ask how much they cost since they can vary greatly in price. It’s also a good idea NOT to have your phone number or other identifying numbers printed on your checks; if someone needs it, they’ll ask for it. Your name and address should suffice. When your checks arrive, make sure to keep them in a VERY safe and secure place. It is very easy for someone to get a hold of your checks and start writing checks from your account without you knowing about it. Identity theft is rising across the country so be careful.

Make sure to always check your monthly bank statement to make sure every transaction that took place was one you authorized. If you catch an error early, it may be corrected fairly easily. If time has passed, it’s much harder to correct.

Lastly, be sure to keep track of the checks you write. It often takes between a few days and a week for a check you wrote to be debited from your account. So, if you just wrote a check and you go to the ATM or online to check your remaining balance, it most likely won’t have been deducted yet, in essence, telling you that you have money in your account that you actually don’t have! It’s very easy to forget about those checks and consequently overdraw your account, causing the check to bounce. Then, not only will you have to pay the vendor whatever you were paying them in the check, but you’ll owe them an additional bounced-check fee, plus an overdraft fee to your bank. Too many bounced checks will hurt your credit rating which you need to keep in good shape if you ever want to buy a cell phone, rent an apartment, buy a car or a house and it could affect your ability to get a job!