Understanding Your Banking Needs
Starting out with banking can feel overwhelming. With so many institutions, accounts, and financial terms, it's not always clear what the best first step is. Whether you're opening your very first account or switching from one bank to another, understanding the basics can help you make a smart, confident choice.
Ask Yourself
What do I need from a bank right now? Are you looking for a simple checking account to receive paychecks and make purchases? Do you want to start saving money for emergencies or a future goal?
Identifying your financial habits and goals will help narrow down the options. Think about how you'll use your account. Will you need frequent cash withdrawals? Do you prefer banking in person or online? Understanding your own needs is the first step to finding the right fit.
Fees and Accessibility: What to Watch For
Many traditional banks charge monthly maintenance fees, overdraft fees, or ATM fees. Look for an institution that offers low or no fees, especially as a beginner. Also, consider whether the bank has a convenient app, online banking features, and nearby ATMs or branches.
Key Fee Considerations
- Monthly maintenance fees (look for accounts with ways to waive these)
- Overdraft fees and protection options
- ATM fees and network availability
- Minimum balance requirements
- Transfer fees between accounts
Banks vs. Credit Unions: Understanding the Difference
Traditional banks are for-profit institutions owned by shareholders. They often have extensive branch networks and ATMs, but may charge higher fees and offer lower interest rates on savings.
Credit unions, on the other hand, are not-for-profit financial institutions owned by their members. This different structure often translates to better rates, lower fees, and more personalized service.
Credit Union Advantage
Credit unions like Veridian put member needs first and support financial education. They offer straightforward account options, accessible mobile banking, and friendly service—ideal for those just beginning their financial journey.
Start Simple and Build Your Knowledge
For most beginners, starting with a basic checking account and a regular savings account is the right move. Once you get comfortable managing your money, you can explore tools like budgeting apps, credit-building programs, or even small investment options.
Take Your Time
There's no rush to open multiple accounts or financial products right away. Start with the basics, learn how they work, and gradually explore more options as your confidence and needs grow.
Never hesitate to ask for help. Whether it's talking to a representative at a branch or using educational tools on your credit union's website, learning is part of building financial confidence. Institutions like Veridian often provide financial literacy resources, workshops, or one-on-one guidance—all free to members.
Safety First
Make sure any bank or credit union you consider is insured by the FDIC (Federal Deposit Insurance Corporation) or NCUA (National Credit Union Administration). This protects your money up to $250,000 per depositor.