1. Choose a banking institution.



Ask your friends and family where they bank and if they like it. What services are important to you? Do you want 24-telephone banking? Is it important that they have lots of ATM machines (automated teller machines)?

You might also consider opening your account at a credit union. A credit union is a smaller banking institution that is limited to a certain segment of the population (sometimes by region or employment). Credit unions often offer higher interest rates on investments and lower interest rates on loans; they can afford to do this because they are non-profit organizations who are taxed differently than banks. There are some disadvantages, however, including fewer ATM, sometimes shortened store hours, and possibly a difference in services. You might not even know that you are qualified for membership at a credit union, so consider doing some research.

Consider which location of your bank is closest to you and will be most convenient to have as your branch location.

2. Choose your account type.

The two most common account types are checking and savings. Go to your bank's webpage to see what benefits they offer for each account type. They probably offer more than one savings account and more than one checking account. Do you qualify for any discounts, perhaps the student account, or the senior's account? These often have comparable benefits to regular accounts but with lower prices.

You will also probably get to choose between a passbook or statement based account. If you want to have your account updates mailed to you regularly, choose to have statements sent to you.

Find out the benefits of your account: will you be able to do online banking or telephone banking? Can you set up automatic bill payments? Ask about extra features that can make your banking life easier.

3. Don't just look at the price.

Sometimes a lower monthly fee is not the best way to judge an account. If your account has a lower monthly fee, it might have a higher per-transaction charge. It might not allow you certain functions that you need, which might include check-writing. Read all of the fine print before you sign up for an account.

Remember that banks might offer you lower introductory rates, which will rise at the end of a set period (sometimes three or six months). If you choose to take advantage of the low introductory rates, or of a free introductory period, and you intend to change your plan at the end of this period, be sure to write a reminder on the calendar.

4. Provide your Information.

You will need to bring identification with you to open up your bank account. They will probably ask for photo id, such as a driver's license or passport. You will also be required to provide your social security number or social insurance number. If you are planning on opening up a bank account for your child who doesn't have this information, call your bank to see what options you have. Often, you can open your child's account with your information.

5. Read the contract.

Read the contract for the account before you sign it. You want to see if there are any extra hidden fees. You also want to be sure that you understand the commitment you are making to the bank. Opening a bank account is a big deal and you want to know what you are doing. Be sure to ask for clarification on any points you don't understand. The bank will be pleased to help you.

6. Get your card.

The bank will give you an ATM card. This might be a temporary card that is replaced by one you get in the mail, or it might be your permanent card. If you opened a checking account, you might get checks to use. Again, these might be temporary checks until you get your real checks by mail.

Your banker will show you how to use your card, and might take you through an instruction on how to use the ATM if you need help with that. You will be able to set your own password for your card.

Once you've followed all of these steps, congratulations! You have a bank account! This is an important step in being able to handle money well.