Why Does Timing Matter When Opening a Checking Account?

Timing can be crucial when opening a checking account, especially if you have outstanding issues with your current bank account or are experiencing major life changes. The best time to open a checking account is when you get your first job, start college, get married or divorced, or want services or features your current bank doesn’t offer.

Is Now the Best Time to Open a Checking Account?

To decide whether now is the best time to open a checking account, ask yourself these questions:

• Is the bank offering an incentive? Banks sometimes offer cash bonuses when you open an account. The amount can range from $50 to $1,000, and usually requires meeting conditions such as maintaining a certain minimum account balance or setting up direct deposit.
• Is your ChexSystems report in order? If a bank has ever closed one of your accounts or you’ve racked up bank fees you never paid, review your ChexSystems report before applying for a new bank account.
• Do you have all the information needed to apply? You can generally fill out an application for a checking account online or in person at a bank branch. Most banks require a government-issued photo ID, Social Security number or Individual Taxpayer Identification Number, your contact information and a second form of identification.
• Have you selected the checking account you want? There are many options for opening a checking account, so don’t rush to apply for the first account you see. Do some homework to find the financial institution and checking account that best fit your needs.

How to Choose the Best Checking Account

Traditional banks, online banks, and credit unions all offer checking accounts; compare your options to decide which type of financial institution best fits your needs. When comparing checking accounts, consider:

• Fees: These may include maintenance fees, ATM fees, overdraft fees, nonsufficient funds fees, and more. If there are ways to waive fees, such as maintaining a certain average minimum balance, make sure you can meet these conditions.
• Convenience: Do the bank’s website and mobile app offer useful features such as mobile check deposit, online bill pay, and account alerts? If you frequently use ATMs or visit your bank branch, are there enough convenient locations?
• Security: To protect your money, choose a bank insured by the FDIC or credit union insured by the National Credit Union Administration (NCUA). FDIC and NCUA insurance guarantee your deposits up to $250,000 per depositor, per ownership category if your financial institution fails.
• Interest rates: Many checking accounts don’t earn interest, but some do. Interest checking accounts earn a relatively low annual percentage yield (APY); as of October 2023, the average interest on checking accounts was 0.07%, according to the FDIC. High-yield checking accounts earn more interest, with some currently offering rates over 3%.

Why Choose O1ne Mortgage for Your Mortgage Needs?

At O1ne Mortgage, we understand that managing your finances is crucial, and having the right checking account is a significant part of that. Whether you’re opening your first checking account or looking to switch to a better one, our team is here to help you make the best decision. Call us at 213-732-3074 for any mortgage service needs. Our experts are ready to assist you with personalized advice and top-notch service.