Opening a Bank Account: Six Things to Know

Banks and credit unions have eradicated the old method of stashing your money in a pillow case. With extra security and ways to earn interest on your hard earned money, most people don't think twice about setting up an account. Not only is money safer in a bank, but debit cards, checks, and online banking make financial transactions and personal bookkeeping quick and easy.

It's often taken for granted that everything is cut and dried when it comes to opening up an account. However, the truth is that there's "fine print" when it comes to allowing a financial institution to handle your money. The rules and regulations are not always the same at every place either. Before signing on the dotted line and making that initial deposit, make sure you understand how some of these key points work at the bank or credit union of your choice.

1. Fees and fines - When financial institutions issue literature about their services, they sometimes fail to explain when and where fees will be charged. Some are obvious, like overdraft fees. But others tend to get lost in the jargon. Make sure you know about anything that can cost you extra. Many banks will charge a fee if you go below a certain balance, but it may not be clear if it's a one time fee or if it accrues on a daily basis. Others offer debit cards free of charge but will charge a fee if you use it as a credit card. Ask for an itemized list of anything the bank can charge you for before deciding if that particular institution is right for you.