If you are new to banking, it can seem like a hard subject to understand. Starting to bank can be hard because there are so many banks, accounts, and cards to choose from. But the basics of banking are easy to learn, and once you do, you'll be able to use all kinds of financial products. Here are some of the most important parts of banking and how they can help you take care of your money:
Why do you need a bank account?
People need to use banks and have bank accounts now more than ever. Once you get a job or have money coming in and going out, you should really open a bank account. Banks are a simple and easy way to store your money, and you can get to it from different places. Even though there are other ways to store and get to your money, like credit unions, banks are the easiest and most convenient.
Accounts for the basics
You will need to open a basic bank account to get started with banking. It may take some research to figure out which account and bank are best for you, but once you do, you need to open an account. You usually get a chequebook and a debit card with a basic account. If you have a steady job, you might be able to get a credit card, but for now, it's best to stick to the basics.
How to make a profile
You usually have to go to your local bank to open an account. They will ask for proof of identification and check your credit report to see if you have ever been bad with bank accounts before. Getting a bank account is usually not too hard. You should be able to get one as long as you can prove who you are and put some money in the account.
Using at ATM
Once you open an account, you'll get a cash or debit card that you can use at an ATM or cash machine. This card has a unique 4-digit PIN number that keeps it safe. At first, you will be given a number, but you can change it at any time. You just put your card in the machine, type in your number, and then follow the on-screen instructions. You can also use your card to buy things in stores or online by giving your card number or entering your personal identification number (PIN) into a machine.
How to use a chequebook
You might also get a chequebook when you open an account. You can use a check to pay for things and also to pay other people. You write who the check is for and how much it is, and then the person who gets it can put it in their account. This usually takes a few days to clear, so it is a good way to spend money if you are short on cash right now but will have money in your account in the next day or two.
Accounts for savings
You might also want to open a savings account in addition to a "current" account. When you put money into a savings account, you can't get to it as easily as you can with a checking account. However, your savings will earn you money through interest. Your money will grow over time, which is good if you don't need it right away. When you have a savings account, you get paid to keep your money safe. Make sure you look around and find the best account for your needs, no matter what kind of account you open.
