Odds are you hold at least some, if not all, of your money in a checking or savings account (or both).
Odds are you have at least one credit card (if you don’t, you should remedy that ASAP).
Odds are you have, or have had at one time, some type of loan — be it a student loan, an auto loan, a mortgage, or perhaps all of the above.
While you most certainly recognize these as products offered by banking institutions, you may not have known that none of them are free. Banks have to stay afloat somehow, and they do so in subtle ways like monthly maintenance fees on your checking account or interest on your auto loan.
Below, we’ll cover the ways banks earn money so they can continue to help you manage yours.
What’s Ahead:
How do banks make money?
When you think of a bank, what comes to mind? Checking accounts? Credit cards? Loans? Banks provide a wide range of services, but the most prevalent (and the most relevant to me and you) fall under two categories: money held for customers and money loaned to customers.
Banks need to earn some sort of revenue from these services, and they do so in two primary ways.
Fees
Fees are the main way banks make money on the cash they hold for customers.
If your checking account has a monthly maintenance fee, for example, it’s part of that bank’s income. If you recently traveled overseas, you may have noticed a fee for using your credit card abroad. This is a foreign transaction fee, and it’s another means of money-making.
Here are some examples of bank fees, many of which you’ve probably paid:
Monthly maintenance fees
Credit card fees
ATM fees
Foreign transaction fees
Overdraft fees
Interchange fees
Origination fees
Late fees
And so on…
Read more: How to stop paying ATM fees
Interest
Interest is how banks make money back on the cash they loan to individuals and businesses.
When you borrow money from your local bank to buy a new car, for example, the bank isn’t doing you a favor; they’re providing a service, and you have to pay for that service. The primary way you repay the bank for loaning you money is through interest.
Some of the products banks charge interest on include the following:
Home loans
Auto loans
Personal loans
Business loans
Student loans
Payday loans
Credit card debt
And so on…
Other bank income streams
While banks make a significant chunk of their income through various fees and interest, their revenue is truthfully much more diverse.
Banks also provide capital markets services, which essentially means they work with investors and businesses who need help with a range of financial activities. Some clients may need help funding a project. Others may need assistance with underwriting and/or building equity. Another business may require the support of an advisor or team of advisors through a merger or an acquisition.
Capital markets services are diverse, but they’re also inconsistent. This is why many banks lean more heavily on revenue from fees and interest.
Do all banks make money in the same ways?
In short, no.
While many banks bring in the bulk of their income through interest and fees, the weight they place on different income streams varies. This is because banks offer two types of services: commercial and investment.
Some banks focus on commercial banking. Some focus on investment banking. Others, but not all, offer products that fall under both categories, and those that do may make more money through one type of banking than another.
Knowing what your bank offers will help you understand why they charge the interest and fees they do.
Commercial banking
Commercial banking is likely more familiar to you, because commercial products are available for individuals and small to mid-sized businesses. In fact, when you hear the term “bank,” more often than not it’s in reference to a commercial bank. The products offered by a commercial bank include deposit accounts (checking and savings accounts) and loans (auto loans, home loans, etc.).
Read more: Which are the best banks?
Investment banking
Investment banking refers to products and services for the “big boys.” We’re talking corporations, high-net-worth individuals, and even governments. These institutions offer financial advice and wealth management, engage in trading activities, and more.
What about credit unions?
At a glance, it may seem like credit unions and banks are virtually the same, and in many ways they are. For instance, both charge customers interest and fees. One notable difference, however, is that credit unions are nonprofit businesses that are owned by their customers, while traditional commercial banks are owned by shareholders.
Read more: Credit unions vs. banks: Think local, save money?
The reason this difference matters from a money-making standpoint is that credit unions are only making enough to cover their own expenses, while banks are actually trying to make a profit. Consequently, credit unions are typically able to offer lower fees and interest rates for their customers.
This said, one of the major drawbacks to working with a credit union is they’re generally smaller than commercial banks, which means they have fewer branches to work with and fewer products.
Read more: The best credit unions
How to reduce your banking costs
Now that you have a clearer idea of how banks make money, you’ll be able to identify opportunities to reduce those funds. Here are two simple suggestions to trim your banking costs:
Pay attention to bank fees
While every bank must charge some fees and interest to stay in business, there are plenty of “fee-free” services you can consider to cut costs.
For instance, online banks are able to maintain lower costs since they don’t have to pay for physical branches. As a result, they can reduce — and sometimes even eliminate — certain fees, like monthly maintenance fees.
Read more: Online banking vs. traditional banking
Another easy fee to avoid is the overdraft fee; all you need to do is opt out of your bank’s overdraft protection and make sure you monitor your account balance to avoid spending more money than you have available.
Read more: Understanding overdraft protection and fees
Shop around before you buy
Banks may sell similar products, but they don’t all charge the same rates and fees.
As mentioned previously, for instance, online banks are able to offer customers reduced fees, because they don’t have to pay for physical branches. With this in mind, before you open a new credit card or take out a personal loan, make sure you spend some time shopping around and comparing options.
Read more: How to choose a bank
Summary
Believe it or not, your bank isn’t free.
Banks have to make money to stay in business, and they do so in a number of ways. If you have a checking account, you’re paying the bank in fees to store your cash. If you have a personal loan, you’re paying the bank in interest to borrow money. But not all banks have identical income streams and understanding how your bank makes money can help you learn how to trim costs for yourself.
From the casinos of Las Vegas to the hot springs of Reno, Nevada has plenty to offer both residents and visitors. The best banks in Nevada offer high interest rates and fee-free basic savings account and checking account options.
12 Best Banks in Nevada
If you’re in the market for a new bank, there are more than a few options available. The below list will help you find a bank account that fits your needs.
1. Chase Bank
There are quite a few national banks in Nevada, including Chase, which has both branches and ATMs in the state. Chase’s signature checking account, Total Checking, waives the monthly fee as long as you receive $500 or more in direct deposits or maintain a $1,500 balance.
But perhaps the best reason to move your Nevada banking to Chase is the $200 bonus if you open a new checking account and enroll in direct deposit.
Fees:
$12 monthly service fees (waived with requirements)
$34 overdraft fee
Balance requirements:
No minimum deposit to open
No minimum balance requirements
ATMs:
Fee-free at 15,000+ Chase Bank ATMs
$3-$5 for each out-of-network ATM transaction
Interest on balance:
0.01% APY on savings account
Up to 3.75% APY on CDs
Additional perks:
$200 bonus for new checking accounts
Chase Overdraft Assist gives you extra time to fix overdrafts
2. Nevada State Bank
For a local bank option, check out Nevada State Bank, which is part of Zions Bancorporation, N.A. Your Nevada State Bank debit card gets you fee-free ATM access at both Nevada State Bank and Zions Bancorporation locations.
Nevada State Bank offers a free checking account as long as you have at least $250 in electronic deposits monthly or make at least 10 debit card purchases using your Nevada State Bank debit card.
Fees:
$9 monthly maintenance fee (waived with requirements)
$29 overdraft fee
Balance requirements:
$50 minimum deposit to open
ATMs:
Fee-free at any Nevada State Bank or Zions Bancorporation ATM
$2.50 fee for each out-of-network ATM transaction
Interest on balance:
0.01% APY on savings accounts
Up to 4.75% APY on CDs
Additional perks:
Military checking accounts available
Wide range of loan options available
3. Chime
Chime is an online and mobile banking option, which offers a fee-free checking account and 2.00% APY on its savings accounts. You’ll have access to cash at more than 60,000 ATMs nationwide. This is an option that works best if you have direct deposit set up, since most of Chime’s perks require it.
Fees:
No monthly service fees
No overdraft fees
Balance requirements:
No minimum deposit to open
No minimum balance required
ATMs:
Fee-free at more than 60,000 ATMs nationwide
$2.50 out-of-network ATM transaction fee
Interest on balance:
2.00% APY on savings account
Additional perks:
Access to paycheck up to two days early
SpotMe covers you in up to $200 in overdrafts
4. Zions Bank
Zions Bank is a regional bank with branches in Nevada, as well as in Arizona, California, Colorado, Idaho, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. Like most banks, Zions Bank offers features like mobile check deposit and online bill pay. You’ll find ATMs throughout Nebraska, as well as across its service area.
Fees:
No monthly service fees
$29 overdraft fee
Balance requirements:
$50 minimum deposit to open
No minimum balance required
ATMs:
Fee-free at any Zions Bancorporation ATM
$2.50 for each out-of-network ATM transaction
Interest on balance:
Up to 0.19% APY on savings accounts
Up to 5.20% APY on CDs
Up to 1.46% APY on money market account
Additional perks:
Robust mobile banking features
Great banking options for small business owners
5. GO2bank
Online-only banks can be among the best banks in Nevada, thanks to their competitive offerings. GO2bank is one of those banks. You’ll get 4.50% APY on your savings account, as well as 7% cash back on gift card purchases.
All you’ll need to do to qualify for the free checking account is to have at least one government or payroll direct deposit in the previous statement period.
Fees:
$5 monthly fee (waived with requirements)
$15 overdraft fee
Balance requirements:
No minimum deposit to open
No minimum balance required
ATMs:
Fee-free at Allpoint ATMs nationwide
$3 for each out-0f-network ATM transaction
Interest on balance:
4.50% APY on savings accounts
Additional perks:
Deposit cash at more than 90,000 retailers nationwide
Up to 7% cash back on gift card purchases
6. Bank of America
Bank of America is a national bank with branches in 38 states, including Nevada. Debit cards work at ATMs throughout its service area, including throughout Nevada.
Advantage Plus checking accounts are fee-free as long as you have at least one electronic deposit of $250 or more, maintain a $1,500 minimum balance, or are enrolled in Preferred Rewards.
Fees:
$12 monthly service fee (waived with requirements)
No overdraft fees
Balance requirements:
$100 minimum deposit to open
ATMs:
Fee-free at 15,000+ Bank of America ATMs nationwide
$5 for each out-of-network ATM transaction
Interest on balance:
Up to 0.04% APY on savings account
Up to 4.75% APY on CDs
Additional perks:
Generous bonuses on new credit cards
Wealth management services available
7. One Nevada Credit Union
If you live, work, or attend church or school in Clark, Nye, or Washoe County, you’ll qualify for membership at One Nevada. Credit unions typically come with plenty of perks, including competitive rates on loans.
The One Checking Account comes with a $5 fee that can be waived as long as you maintain a $2,000 average daily balance or have at least 15 signature-based debit purchases each month.
Fees:
$5 monthly service fee (waived with requirements)
$35 overdraft fee
Balance requirements:
$5 membership fee to open
ATMs:
Fee-free at One Nevada Credit Union ATMs
Fee-free at 46,000+ Allpoint ATMs nationwide
Interest on balance:
0.05% APY on savings account
Up to 4.59% APY on CDs
Additional perks:
Dividends paid monthly on One savings account
Competitive rates on personal loans
8. CIT Bank
CIT Bank is an online and mobile banking solution that offers a no-fee checking account. A $100 minimum opening deposit is required, but there are no fees for overdrafts.
Although CIT doesn’t have an ATM network, there are no out-of-network ATM fees, and CIT will even refund up to $30 in fees charged by third-party ATM owners every month.
Fees:
No monthly maintenance fees
No fees for overdrafts
Balance requirements:
$100 minimum opening deposit
No minimum balance required
ATMs:
Up to $30 in out-of-network ATM fees reimbursed monthly
Interest on balance:
Up to 0.25% APY on checking accounts
Up to 4.736% APY on savings accounts
Up to 5.00% APY on CDs
Up to 1.538% APY on money market accounts
Additional perks:
Competitive rates on financing for small business owners
Competitive rates on no-penalty CDs.
9. Wells Fargo
Another national bank in Nevada is Wells Fargo, which has branches in Las Vegas and Henderson. You can complete most of your transactions using the mobile banking app, but you’ll also have fee-free ATM access at 12,000 ATMs nationwide.
You’ll get a free checking account as long as you maintain a $500 minimum balance or receive $500 or more in qualifying direct deposits each statement period.
Fees:
$10 monthly service fee (waived with requirements)
$35 overdraft fee
Balance requirements:
$25 minimum deposit to open
No minimum balance requirement
ATMs:
Fee-free at Wells Fargo ATMs nationwide
$2.50 fee for each out-of-network ATM transaction
Interest on balance:
Up to 0.25% APY on savings account
Up to 4.51% APY on CDs
Additional perks:
$300 bonus for new checking accounts
Robust mobile banking services
10. WaFd Bank
WaFd Bank is a regional bank with branches in Nevada, Arizona, Idaho, New Mexico, Oregon, Texas, Utah, and Washington. You’ll have access to more than 200 branches throughout those states, as well as ATM access at MoneyPass locations nationwide.
What makes WaFd Bank the best regional bank is its local bank feel. The bank focuses on providing a sense of community in each area it serves.
Fees:
No monthly maintenance fees
$30 overdraft fee
Balance requirements:
$25 minimum opening deposit
No minimum daily balance requirement
ATMs:
Fee-free at 32,000+ MoneyPass ATMs nationwide
Interest on balance:
0.10% APY on savings account
Up to 5.00% APY on CD
Up to 2.00% APY on money market account
Additional perks:
Three styles of debit cards
Budgeting and financial management tools in mobile banking app
11. First Foundation Bank
Another regional bank with branches in Nevada is First Foundation Bank. There are multiple checking account options, including a free account that requires a $100 opening deposit.
There’s no national ATM presence, but First Foundation does reimburse up to $20 in third-party ATM fees monthly. What makes First Foundation the best regional bank, though, is its above-average rates on savings accounts. You’ll earn 4.85% APY on your savings account balance.
Fees:
No monthly maintenance fees
$35 overdraft fee (after $10 grace amount)
Balance requirements:
$100 minimum opening deposit
No minimum daily balance requirement
ATMs:
Fee-free at First Foundation Bank ATMs
Up to $20 in third-party ATM fees reimbursed monthly
Interest on balance:
4.85% APY on savings account
Up to 4.75% APY on CD
Additional perks:
Wealth management services available
Robust solutions for small business owners
12. Plumas Bank
Plumas Bank is a local bank covering Northeastern California and Northern Nevada. You’ll find competitive rates on CDs and multiple checking account options. The basic checking account comes with no monthly fees as long as you conduct 10 or more signature-based transactions using your debit card and enroll in e-statements.
Fees:
$7 monthly service fee (waived with requirement)
$34 overdraft fee
Balance requirements:
$100 minimum opening deposit
No minimum daily balance required
ATMs:
Fee-free at ATMs with the VISA, STAR, and PLUS symbols
$2 out-of-network ATM fee
Interest on balance:
0.10% APY on savings account
Up to 4.08% APY on CD
Additional perks:
Robust services for small business owners
Highly rated customer service
How to Choose the Best Bank for Your Needs
Whether you’re looking for a small local bank like Nevada State Bank or you’d prefer a large national bank like Bank of America, it’s important to look at the features. Here are some things to consider for your personal or business checking account and savings needs.
Selection of Products and Services
There’s more to a financial institution than fees and interest rates. The best banks in Nevada provide the type of customer service you need, coupled with a range of services.
If most of your banking is done electronically, online banking might be the best choice for you. If you regularly make cash deposits and withdrawals, though, a local bank with branches close to your house could make a bigger difference.
Before signing on with a bank, take a look at the products offered. Some banks and credit unions provide great interest rates on auto loans if you’re already a customer, so having that as an option could save you money later.
Personal, Business, or Both?
To start, take a close look at what you need in a bank account. Even if you don’t run your own business now, will you someday? If so, business banking services are worth consideration. Landing business loans might be easier if you already have a personal or business checking account with a bank.
Interest Rates
There are two ways interest rates impact you when you’re researching the best banks in Nevada. Deposit accounts like checking and savings earn interest, while loans and credit cards charge interest.
Some checking accounts pay interest but charge fees that supersede any earnings. Some banks offer competitive rates on CDs and savings, but the deals on loans and credit cards aren’t as good. There’s always the option of having multiple bank accounts, but if you prefer to do all your banking in one place, it’s important to consider these factors.
Minimum Balance
Some accounts have a minimum balance requirement attached to their personal checking account options. The best checking account will give you the freedom you need to deposit and transfer money without having you stress about your balance.
It’s also important to note the wording of those balances. In some cases, your personal checking will simply need to keep an average daily balance to meet requirements. Some of the best checking accounts also consider your balance across all your accounts rather than setting a requirement for each. If you have two checking accounts or a checking and savings account with the same bank, you’ll be able to more easily meet that requirement.
Access to Mobile Banking
Online banking makes managing your money easy. Whether you narrow your search to online banks or you’re looking for the best national bank, chances are, you’ll be able to manage your account online.
The best checking account lets you transfer funds, deposit checks, and manage your payment cards in an app. Take a close look at any bank’s app to make sure you’ll be able to handle most of your account online if you prefer to steer clear of branches and ATMs. If you go with an online-only bank, though, make sure you’ll have access to cash when you need it, especially while traveling.
The largest banks in Nevada might not have the features you need. Before choosing a bank, make sure the bank offers the best features for you while also reducing fees and maximizing interest.
When it comes to money, everyone has an opinion. In a new integrated campaign, Bank of New Zealand via Colenso BBDO is reassuring homeowners that if they’re looking for help with their home loan, BNZ has the expertise to get them the answers they’re really after.
Launched in 2022, ‘Let’s find a way’ demonstates how BNZ’s wealth of expertise helps New Zealanders to navigate towards a bigger, brighter future. This latest campaign takes a playful approach to something many New Zealanders are too familiar with – unsolicited mortgage advice from those around us. Viewers follow the ups and downs of the journey towards clarity, demonstrating how BNZ’s expertise is the antidote to the variety of opinions that come everyone’s way.
The work also highlights BNZ’s MyProperty, an award winning digital tool available within BNZ’s online banking, that allows customers to calculate how changes in interest rates or repayments impacts their own home loan.
Says Amy Phillips, GM marketing at BNZ: “We know the rising cost of living means many people are really having to think about their finances right now, particularly those with home loans. As the Bank of New Zealand, our role is to help our customers find a way to navigate through uncertainty, and give homeowners the clarity they need to feel reassured. It might be a chat with one of our Home Loan Partners to make a plan, or planning ahead with our MyProperty tool.”
Says Si Vicars, CCO, Colenso BBDO: “As a nation we’ve become very good at talking about the property market. When you’re surrounded by so many differing points of view and opinions, it’s nice to know BNZ have the expertise to guide your next decision. We reckon this is a story a lot of homeowners can relate to.”
The latest integrated campaign behind ‘Let’s find a way’ launched on Monday 5th June across TV, AV, OOH, digital and social channels.
Nebraska is packed with culture and beauty, from the diversity of its music to the vast farmland that brings income to the state. The best banks in Nebraska offer the amenities you need, while also keeping fees to a minimum so that you can make the most of your hard-earned money.
10 Best Banks in Nebraska
Whether you’re looking for a local bank or a national bank with a Nebraska presence, there’s a bank for you. The below list can help you find the right checking and savings accounts to meet your banking needs.
1. Pinnacle Bank
Although Pinnacle Bank is a local bank, there are branches in Nebraska, Missouri, and Kansas. The free checking account requires a $100 minimum deposit, but there are no fees or balance requirements.
One downside to Pinnacle’s free checking accounts is that the ATM presence is limited, but students, seniors, and military can get up to $10 in out-of-network ATM fees rebated each month.
Fees:
No monthly service fee
$32 overdraft fee ($10 if the returned item is $10 or less)
Balance requirements:
$100 minimum deposit to open
No minimum balance requirement
ATMs:
Fee-free at Pinnacle Bank ATMs
Interest on balance:
0.86% APY on savings accounts
Up to 2.08% APY on money market accounts
Additional perks:
Real-time teller access at select ATMs with ATM LIVE
$10 refund on out-of-network ATMs for seniors, military, and students on free checking account
2. First National Bank of Omaha
Headquartered in Omaha, First National Bank of Omaha (FNBO) is a regional bank with branches in Nebraska, Colorado, Illinois, Iowa, Kansas, South Dakota, Texas, and Wyoming. First National Bank has multiple checking accounts, including a free option that has no monthly maintenance fees or minimum balance requirements.
Not only do you get fee-free ATM access at First National Bank and Allpoint ATMs, there’s also no fees for using out-of-network ATMs. You will, however, be responsible for any fees charged by the third-party ATM owner.
Fees:
No monthly maintenance fees
No overdraft fees
Balance requirements:
No minimum deposit to open
No minimum balance requirement
ATMs:
Fee-free at First National Bank of Omaha ATMs
Fee-free at Allpoint ATMs nationwide
No fees for non-First National Bank ATMs
Interest on balance:
Up to 0.08% APY on savings accounts
Additional perks:
Personal banker available through mobile banking app
Rate discount on auto, home equity, and personal loans
3. GO2bank
One of the best things about online banking is that it often comes with high-yield savings accounts. That’s definitely the case with GO2bank, an online bank that pays 4.50% APY on its savings accounts.
But the best thing about GO2bank is its cash accessibility. Not only can you withdraw funds from any Allpoint ATM nationwide, but you can also deposit funds at participating retailers across the country using your debit card.
Fees:
$5 monthly fee (waived with requirements)
$15 overdraft fee
Balance requirements:
No minimum deposit to open
No minimum daily balance required
ATMs:
Fee-free at Allpoint ATMs nationwide
$3 for each out-of-network ATM withdrawal
Interest on balance:
4.50% APY on savings
Additional perks:
4. Chime
Chime is another online banking option that includes all its features in its app. You can access cash at more than 60,000 ATMs nationwide, but deposits can be more challenging.
Mobile check deposit is available, but Chime has no easy way to make cash deposits to your account. Chime’s online savings account offers competitive interest rates at 2.00% APY.
Fees:
No maintenance fees
No overdraft fees
Balance requirements:
No opening deposit
No minimum daily balance required
ATMs:
Fee-free at 60,000+ ATMs nationwide
$2.50 out-of-network ATM transaction fee
Interest on balance:
2.00% APY on savings accounts
Additional perks:
SpotMe covers overdrafts up to $200
Access to paycheck up to two days early
5. Union Bank & Trust
Union Bank & Trust is a privately owned bank headquartered in Lincoln. You’ll get access to branches and ATMs throughout Nebraska, along with free access to cash while traveling at any MoneyPass ATM.
One thing that sets UBT apart from other Nebraska banks is its bonus of up to $250 for new checking accounts. If you go with the free checking, you’ll only receive $150, but if you’ll have at least $2,500 in electronic deposits within the first 90 days, you can go with a higher-tier account and earn a $250 bonus.
Fees:
No monthly maintenance fees
$34 overdraft fee
Balance requirements:
$50 minimum opening deposit
No minimum balance requirements
ATMs:
Fee-free at Union Bank & Trust ATMs
Fee-free at MoneyPass ATMs
Interest on balance:
0.50% APY on savings accounts
Up to 4.63% APY on CDs/IRAs
Up to 3.30% APY on money market account
Additional perks:
6. Wells Fargo
One of the top national banks in Nebraska is Wells Fargo, which has locations and ATMs throughout the state. You can enjoy fee-free checking as long as you meet the requirements. For the Everyday Checking account, you’ll merely need to maintain a $500 minimum daily balance or have at least $500 in electronic deposits each month.
Wells Fargo is also currently offering a $300 bonus for new checking accounts. You’ll need at least $1,000 in qualifying direct deposits within the first 90 days to get your bonus.
Fees:
$10 monthly service fee (waived with requirements)
$35 overdraft fee
Balance requirements:
$25 minimum opening deposit
No minimum balance requirement
ATMs:
Fee-free at Wells Fargo ATMs nationwide
$2.50 out-of-network ATM fee
Interest on balance:
Up to 2.51% APY on savings accounts
Up to 4.51% APY on CDs
Additional perks:
$300 bonus on new checking accounts
Comprehensive mobile banking features
7. American National Bank
American National Bank is one of the best banks in Nebraska if you’re looking for a local bank experience with an extended service area. You’ll find 37 locations in Eastern Nebraska, Western Iowa, and the Minneapolis-St. Paul area. The fee-free checking accounts come with a $50 minimum opening deposit and no minimum daily balance requirements.
Fees:
No monthly fees
Balance requirements:
$50 minimum deposit to open
No minimum daily balance required
ATMs:
Fee-free at American National Bank ATMs
Interest on balance:
Rates not publicly disclosed
Additional perks:
Personal and home loans available
Small business banking options available
8. Ally
There are some disadvantages to going with an online bank. One of the biggest is access to cash. Ally works to overcome that by offering free ATM withdrawals at any Allpoint ATM across the country.
Ally also doesn’t charge a fee for out-of-network ATMs, and you’ll get up to $10 reimbursed monthly. But one of the biggest benefits of Ally is its highly competitive interest rates on online savings accounts and CDs. You’ll even earn 0.25% on your checking account.
Fees:
No maintenance fees
No overdraft fee
Balance requirements:
No minimum deposit to open
No minimum balance requirements
ATMs:
Fee-free at 53,000+ Allpoint ATMs nationwide
No out-of-network ATM fee
Up to $10 in out-of-network ATM fees reimbursed monthly
Interest on balance:
0.25% APY on checking
3.85% APY on savings
Up to 4.80% APY on CDs
Additional perks:
Avoid overdrafts with CoverDraft℠
Spending buckets help you budget
9. Cornerstone Bank
Cornerstone Bank started as First National Bank of York in the 1800s. It’s a great bank if you’re interested in traditional banks with a strong community connection, but its focus is local. ATMs are limited to Nebraska, and you’ll pay a $3 fee for each out-of-network ATM you use.
Fees:
No service fees
$33 overdraft fee
Balance requirements:
$100 opening deposit
No minimum daily balance required
ATMs:
Fee-free at all Cornerstone Bank ATMs
$3 out-of-network ATM transaction fee
Interest on balance:
Interest rates not publicly disclosed
Additional perks:
Wealth management services available
Home and auto loans available
10. Platte Valley Bank
Regional banks can be a great compromise between large, national banks and small community banks. Platte Valley Bank has branches across Nebraska and Wyoming, with a mobile app that includes most of the features you’ll need.
One downside to Platte Valley is its ATM profile, since you’ll only have fee-free cash access at ATMs in its service area.
Fees:
No service fees
$30 overdraft fee
Balance requirements:
$100 opening deposit
No minimum daily balance required
ATMs:
Fee-free at all Platte Valley Bank ATMs
Out-of-network fees reimbursed
Interest on balance:
Interest rates not publicly disclosed
Additional perks:
Agricultural loans available
Robust business banking options
How we picked these accounts
The most important feature of a bank is that it’s insured by the Federal Deposit Insurance Corporation. Beyond that, it’s simply a matter of highlighting the features that are most important to you.
We considered all that while curating the above list of bank account options. The list combines a bit of everything, from great interest rates on savings accounts to in-person service at branches throughout the state. Here are the features we prioritize in looking for the best financial institution in Nebraska.
In-Person Customer Service
These days, you can do the majority of your banking through apps and ATMs. But there’s something about that local bank experience that makes it stand out. If you prioritize personal service, branch access may be most essential for you.
But when looking at financial institutions, keep in mind that brick-and-mortar banks come in a variety of formats. Local Nebraska banks tend to have more of a community focus, but national banks with local branches will give you branch access while you’re traveling. Once you’ve narrowed down the options, you can pick the one with other features you need.
Online Banking Features
Banking online has brought convenience to the experience. You can deposit checks, transfer money, pay bills, and keep an eye on your accounts. Some banking apps even allow you to interact with a live teller for that personal customer service you’d typically get at brick-and-mortar locations.
Look for an online bank with fee-free withdrawals both locally and while you’re traveling. Also, make sure you’ll have a way to deposit cash if it ever becomes necessary.
Cost and List of Fees
Banks need to make money, and often this comes through interest. However, they also earn a little on the fees they charge for deposit accounts.
To compete, banks sometimes waive monthly fees. However, you’ll be expected to maintain a minimum amount in the account. This is where some online accounts can win over traditional banks. They’ll waive these requirements and give you a truly fee-free banking solution.
From the largest banks in the country to community banks, Nebraska has plenty of options when it comes to storing your money. Thanks to banking apps and online access, you can go with a bank that doesn’t even have physical branches. Take a look at all the features and choose the best Nebraska bank for you.
In our increasingly interconnected world, money knows no borders. However, the complex web of global financial transactions needs a reliable system to keep things running smoothly. That’s where the SWIFT code steps in.
This globally recognized code, akin to an international passport for banks, ensures that your money gets to its correct destination when you’re involved in international transactions.
So whether you’re a globetrotter managing expenses across countries, an expat sending money back home, or a business dealing with international clients, understanding the SWIFT code is crucial. Join us as we decode the SWIFT system and discover its importance in transferring money internationally.
What is SWIFT?
SWIFT stands for Society for Worldwide Interbank Financial Telecommunication, a global member-owned cooperative headquartered in Belgium. Established in the 1970s to streamline and standardize financial transactions, it is now used by over 11,000 financial institutions worldwide for international money transfers.
Understanding SWIFT Code
A SWIFT code, sometimes known as a SWIFT BIC (Bank Identifier Code) or BIC code, is a standard format of Business Identifier Codes approved by the International Organization for Standardization (ISO). It’s a unique identification code for both financial and non-financial institutions. The term ‘SWIFT’ is often used interchangeably with ‘BIC’; thus, ‘SWIFT code’, ‘SWIFT BIC code’, ‘BIC code’, and ‘SWIFT ID’ essentially refer to the same thing.
A SWIFT code consists of 8–11 characters and contains information about the specific bank and branch where an account is held. The first four characters indicate the bank code, identifying the bank’s name.
The next two characters are the country code, representing the country where the bank’s head office is located. The following two characters are the location code, which can be numeric or alphabetic and identifies the bank’s head office’s city. The final three characters, which are optional, are the branch code, identifying a specific branch of the bank.
For example, let’s say the SWIFT BIC code is ‘ABCDGB2LXXX’. Here, ‘ABCD’ is the bank code, ‘GB’ is the country code for Great Britain, ‘2L’ is the location code, and ‘XXX’ is the branch code.
Function of SWIFT Codes
The primary function of SWIFT codes is to enable international money transfers between banks efficiently and accurately. When you send money overseas, you’ll need a SWIFT BIC code to identify the recipient’s bank. This ensures that your funds are routed to the correct bank in the correct country.
In addition, SWIFT codes also assist in various other international financial transactions, including issuing Letters of Credit (LCs), payments for import/export purposes, and interbank transfers. They are also used in communication between banks and allow these institutions to exchange messages securely via the SWIFT network.
Where to Find SWIFT Codes
Finding the correct SWIFT code is crucial when making international transfers. You can find your bank’s SWIFT code by looking at your bank account statements or your online banking portal.
Alternatively, if you’re looking for another bank’s SWIFT code, you can use online SWIFT code databases or simply contact the specific bank directly. Just be sure to confirm the legitimacy of the SWIFT code you receive to avoid any hiccups during your transaction.
Using SWIFT Codes to Send Money Abroad
When you transfer money internationally using the SWIFT system, your bank will send a message via the SWIFT network to the recipient’s bank. This message will indicate the amount of money to be transferred and the account to be credited. The receiving bank then credits the account, and the money is transferred.
However, if the recipient’s bank does not have a direct relationship with your bank, intermediary banks might get involved, and additional fees may apply. Therefore, it’s essential to be aware of any potential charges related to SWIFT transfers.
Common Misconceptions about SWIFT Codes
Many people think that SWIFT codes are exclusive to banks, but they are used by various other financial institutions as well. Moreover, while SWIFT codes are vital for international transactions, they do not facilitate the actual transfer of funds but rather ensure that your money is sent to the correct institution.
SWIFT vs. IBAN
While both SWIFT and IBAN (International Bank Account Number) codes are used to transfer money internationally, they serve different purposes. The SWIFT code identifies a specific bank during an international transaction, while an IBAN identifies an individual account involved in the international transaction. In other words, while SWIFT codes ensure that the funds are sent to the correct bank, an IBAN ensures that the money goes to the correct bank account.
Alternatives to SWIFT for Sending or Receiving Money
While SWIFT is the standard for international wire transfers, other options may provide lower fees or faster transfer times. These alternatives include TransferWise, SEPA (Single Euro Payments Area), and various cryptocurrency solutions. However, each of these methods has its pros and cons, and the best method for transferring money will depend on your specific needs and circumstances.
Conclusion
Navigating international banking transactions need not be a Herculean task. A solid understanding of SWIFT codes and their role in global transactions can take you a long way in ensuring your international payments are processed accurately and promptly.
Frequently Asked Questions
What happens if I use the wrong SWIFT code?
If you use the wrong SWIFT code, your international money transfer might be sent to the wrong bank, causing delays. In the worst-case scenario, your money could end up in a completely different bank account. If you realize that you have used an incorrect SWIFT code, it’s important to contact your bank immediately to attempt to resolve the issue.
Are SWIFT codes the same for all branches of a bank?
Not necessarily. While the first four characters of a SWIFT code, the bank code, remain the same across all branches of a specific bank, the last three characters, the branch code, can vary. This branch code identifies the specific branch of a bank. However, not all banks have unique codes for each branch, and in such cases, a generic ‘XXX’ is used in place of the branch code.
Can I receive money internationally without a SWIFT code?
It largely depends on the country and the bank. Some countries, like those in the Eurozone, primarily use International Bank Account Numbers (IBAN) for international transfers. However, most banks and financial institutions worldwide use the SWIFT network for receiving international payments.
If your bank does not have a SWIFT code, it will likely partner with a bank that does have a SWIFT code (also known as a correspondent bank) to receive international payments.
Is the SWIFT code the same as the IBAN?
No, a SWIFT code and an IBAN serve different purposes in international transfers. A SWIFT code identifies the bank involved in the transaction, whereas an IBAN identifies the specific account within the bank. When processing international payments, you will usually need to provide both the SWIFT code and the IBAN.
Is it safe to give out my bank’s SWIFT code?
Yes, it’s safe to share your bank’s SWIFT code. It’s a public piece of information and used to identify your bank during international transactions. However, remember that other sensitive information like your bank account number should be kept confidential and only shared when necessary and with trusted entities.
What do I do if my bank does not have a SWIFT code?
If your bank doesn’t have a SWIFT code, it typically means that they’re using a partner bank to receive international payments. You should contact your bank’s customer service to understand the procedure for receiving international wire transfers. They can provide you with the partner bank’s SWIFT code and any additional information needed for the transfer.
Montana is a beautiful place to live, with its waterways and mountainous terrain. If you live and work in the state, you likely need a great place to park your money. The best banks in Montana give you everything you need to pay your bills and manage your money while also keeping fees to a minimum.
The banking industry in Montana is thriving, with a wide range of brick-and-mortar banks that include local, national, and regional banks. Online banking can be a great option, as well, offering reduced fees and savings interest rates that are above the national average.
14 Best Banks in Montana
This list offers a combination of different bank accounts to help you find the right combination of features to fit your needs.
1. First Interstate Bank
With branches in Montana, Arizona, Colorado, Idaho, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oregon, South Dakota, Washington, and Wyoming, First Interstate Bank has a fairly large footprint.
You’ll also get fee-free access to ATM withdrawals nationwide through the MoneyPass network. First Interstate’s free checking account waives monthly maintenance fees with direct deposit or at least a $250 daily balance. Account holders under the age of 24 also pay no service fees.
Fees:
$5 monthly service fee (waived with requirements)
$10 overdraft fee
Balance requirements:
$100 minimum deposit to open
No minimum balance requirements
ATMs:
Fee-free at First Interstate Bank ATMs
Fee-free at 37,000+ MoneyPass ATMs nationwide
$2.50 out-of-network ATM fee
Interest on balance:
Up to 0.25% APY on savings accounts
Up to 0.25% APY on money market accounts
Up to 4.29% APY on CDs
Additional perks:
Open a FirstRewards World Mastercard along with a checking account and get 5,000 bonus points
Wealth management services available
2. GO2bank
GO2bank is an online-only bank that integrates all your banking functions into its app. You’ll get most of the features you need to manage your bank account in the app, including mobile check deposit and the ability to transfer money from checking to your savings account.
But what sets GO2bank apart from other online and mobile banking options is its cash accessibility. Not only can you withdraw funds at any Allpoint ATM, but you can also deposit cash at more than 90,000 retail locations nationwide.
Fees:
$5 monthly fee
$15 overdraft fee
Balance requirements:
No minimum deposit to open
No minimum daily balance requirement
ATMs:
Fee-free at Allpoint ATMs nationwide
$3 out-of-network ATM fee
Interest on balance:
4.50% APY on savings accounts
Additional perks:
Deposit cash at 90,000+ retail locations nationwide
Secured credit card helps you boost your credit score with no credit check required
3. U.S. Bank
Multiple national banks have branches in Montana, including U.S. Bank, which operates 21 branches across 14 towns. You’ll find ATMs across Montana, but the bank doesn’t operate in every state. You will, however, enjoy fee-free access to cash while you’re traveling through the MoneyPass network, which currently operates about 40,000 ATMs nationwide.
The U.S. Bank Smartly checking account is an interest-earning account that doesn’t charge fees, provided certain conditions are met. These conditions include having monthly electronic deposits of $1,000 or more, maintaining a minimum average balance of at least $1,500, or possessing an eligible U.S. Bank credit card. Alternatively, you can also qualify for fee-free status if you reach one of the bank’s rewards tiers.
In addition, for a limited time, you can earn a $400 sign-up bonus with qualifying activities.
Fees:
$6.95 monthly maintenance fee (waived with requirements)
$35 overdraft fee (waived up to $50)
Balance requirements:
$25 minimum opening deposit
No minimum daily balance requirement
ATMs:
Fee-free at U.S. Bank ATMs
Fee-free at MoneyPass ATMs nationwide
$2.50 fee per out-of-network ATM transaction
Interest on balance:
Up to 0.05% APY on checking accounts
0.01% APY on savings accounts
Up to 4.75% APY on CDs
Up to 4.00% APY on money market accounts
Additional perks:
Smart Rewards program helps you earn rewards for purchases
Up to $750 bonus for business checking accounts
4. Stockman Bank of Montana
Those who prefer brick-and-mortar banks should take a look at Stockman Bank of Montana. As Montana’s largest family-owned bank, Stockman Bank offers branches and ATMs throughout the state. It might not be the best option if you regularly leave Montana, though, as you’ll pay an out-of-network ATM fee of $1 per transaction in addition to third-party ATM fees.
Fees:
No monthly maintenance fees
$15 overdraft fee
Balance requirements:
$100 minimum deposit to open
No minimum balance requirements
ATMs:
Fee-free at Stockman ATMs
$1 out-of-network ATM fee
Interest on balance:
Up to 0.60% APY on savings accounts
Up to 4.39% APY on CDs
Additional perks:
High ratings for customer service
Enhanced debit card security features in mobile banking app
5. Opportunity Bank of Montana
Based in Helena, Opportunity Bank of Montana is another community bank with access to a nationwide ATM network. There are two free checking account options.
Opportunity Checking has all the basics, but Opportunity Reward Checking issues 1% unlimited cash back on qualifying purchases. To qualify for reward checking, you’ll need to receive at least $1,000 in monthly direct deposits and have at least 10 qualifying purchase transactions on your debit card.
Fees:
No monthly service fees
$30 overdraft fee
Balance requirements:
$100 minimum deposit to open
No minimum daily balance requirement
ATMs:
Fee-free at Opportunity Bank ATMs
Fee-free at MoneyPass ATMs nationwide
$2 fee for ATMs outside the Opportunity and MoneyPass networks
Interest on balance:
Rates not publicly disclosed
Additional perks:
6. Glacier Bank
It might be a regional bank, but Glacier Bank has a heavy presence in its service area. You’ll find 222 branches in Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona, and Nevada, and you can use your ATM card at any Allpoint ATM across the globe. In addition to local bank branches, you’ll also get great deals on checking accounts, as well as savings and business banking options.
Fees:
No monthly fees
$30 overdraft fee
Balance requirements:
No minimum deposit to open
No minimum balance requirement
ATMs:
Fee-free at Glacier Bank ATMs
Fee-free at 55,000 Allpoint ATMs worldwide
$2 fee for ATMs outside of Glacier Bank and Allpoint networks
Interest on balance:
Rates not publicly disclosed
Additional perks:
New checking account comes with a thank-you gift
Robust business banking services
7. Chime
If you have direct deposit, Chime is an online banking option that’s worth considering. Chime doesn’t charge monthly service fees on its checking account, and automatic savings features can help move money from your checking account to your savings account regularly. There is no cash deposit option with Chime, but you can withdraw cash from any Allpoint ATM.
Fees:
No monthly service fees
No overdraft fees
Balance requirements:
No minimum deposit to open
No minimum daily balance requirement
ATMs:
Fee-free at 60,000+ ATMs nationwide
$2.50 outside ATM fee
Interest on balance:
2.00% APY on savings accounts
Additional perks:
8. Chase
Chase Bank is another national bank with branches and ATMs in Montana. You’ll find branches in Helena and Billings. One of the best things about Chase is its nationwide presence. Chase has 4,800 branches and 16,000 ATMs spread across 48 states and the District of Columbia.
The most popular account is Chase Total Checking, which is fee-free if you receive at least $500 in electronic deposits monthly, have a daily balance of at least $1,500, or maintain an average combined balance of $5,000 across all your Chase Bank accounts.
Fees:
$12 monthly service fee (waived with requirements)
$34 overdraft fee
Balance requirements:
No minimum opening deposit
No minimum daily balance required
ATMs:
Fee-free at 15,000+ Chase ATMs
$3-$5 non-Chase ATM fee
Interest on balance:
0.01% APY on savings accounts
Up to 3.75% APY on CDs
Additional perks:
$300 bonus for new checking accounts
Autosave makes it easy to transfer funds to your savings account
9. Farmers State Bank
Another community bank is Farmers State Bank, which has locations across Montana. Farmers State Bank offers both e-banking and traditional banking services to meet all your needs. Although their checking accounts require an opening balance, you can find a fee-free option with no minimum balance requirements or fees.
Fees:
No monthly fees
Balance requirements:
$25 minimum deposit to open
No minimum balance requirement
ATMs:
Fee-free at Farmers State Bank locations
$1 non-Farmers State ATM fee
Interest on balance:
Up to 0.03% APY on savings accounts
Up to 2.27% APY on money market accounts
Up to 4.59% APY on CDs
Additional perks:
Consumer and business loans available
Scholarship program available for students
10. Trailwest Bank
Serving Ravalli, Missoula, Mineral, and Flathead Counties, Trailwest Bank is a locally owned bank with checking and savings options. One feature that sets Trailwest Bank apart is its rewards checking account. Your account comes with a debit card that issues unlimited $.10 rewards per purchase with no fees or minimum balance required.
Fees:
No monthly fees
$30 overdraft fee
Balance requirements:
$25 minimum deposit to open
No minimum daily balance requirement
ATMs:
Fee-free at Trailwest Bank locations
Fee-free at Allpoint ATMs nationwide
$2 ATM fee for transactions outside the Trailwest and Allpoint networks
Interest on balance:
Rates not publicly disclosed
Additional perks:
Wide range of personal loans available
Business checking and savings account options
11. Ally
Another online banking option is Ally, which stands apart from other online banks due to its competitive interest rates on checking accounts, savings accounts, CDs, and money market accounts.
Ally pays up to 0.25% APY on checking account balances, as well as 3.85% APY on savings accounts. One perk included with your Ally checking account is spending buckets, a tool that helps you better balance your budget.
Fees:
No monthly fees
No overdraft fees
Balance requirements:
No minimum opening deposit
No minimum daily balance requirement
ATMs:
Fee-free at 53,000+ Allpoint ATMs nationwide
Up to $10 in third-party ATM fees reimbursed monthly
Interest on balance:
0.25% APY on checking accounts
3.85% APY on savings accounts
Up to 4.80% APY on CDs
4.15% APY on money market accounts
Additional perks:
Robo Portfolios available to help you build wealth
CoverDraft helps you avoid overdrafts
12. Independence Bank
When it comes to local Montana banks, Independence Bank is a great option. You’ll find physical branch locations across Montana, each offering the in-person customer service you can only get from a brick-and-mortar bank. Independence Bank offers two checking accounts, including one fee-free option.
Fees:
No monthly maintenance fees
Balance requirements:
No minimum daily balance required
ATMs:
Fee-free at Independence Bank ATMs
Interest on balance:
Rates not publicly disclosed
Additional perks:
Robust business checking options
Special perks for account holders aged 60 and over
13. Valley Bank of Kalispell
Valley Bank of Kalispell is a community bank with more than a century of experience in the area. The bank’s main office is in downtown Kalispell, with an additional loan office in Eureka. You’ll find multiple basic checking accounts with no monthly maintenance fees, each with its own requirements and features.
Fees:
No monthly maintenance fees
Balance requirements:
$50 minimum opening deposit
No minimum balance requirements
ATMs:
Fee-free at Valley Bank ATMs
Fee-free at MoneyPass ATMs nationwide
Interest on balance:
Rates not publicly disclosed
Additional perks:
Easy check ordering
Wide variety of auto and recreational vehicle loan options
14. Wells Fargo
Wells Fargo is a national bank with branches in 4,900 branches in 37 states. You’ll get fee-free ATM use while traveling at 12,000 ATMs, but if you travel to one of the states without a Wells Fargo presence, Wells Fargo will charge a $2.50 fee for each non-Wells Fargo network ATM withdrawal.
This is in addition to the fee charged by third-party ATM providers. Currently, you can earn a $300 bonus by opening an Everyday Checking Account with a $25 deposit and receiving at least $1,000 in direct deposits within the first 90 days.
Fees:
$10 monthly fee (waived with requirements)
$35 overdraft fee
Balance requirements:
$25 minimum opening deposit
No minimum daily balance requirement
ATMs:
Fee-free at Wells Fargo ATMs nationwide
$2.50 fee for non-Wells Fargo ATM transactions
Interest on balance:
Up to 2.51% APY on savings
Up to 4.51% APY on CDs
Additional perks:
$300 bonus on new checking accounts
FICO score available in mobile banking app
How We Picked These Accounts
Banking needs vary from one person to another, so it can be tough to say what the best banks are. First, there’s the national vs. local debate. Someone who travels often might prefer a bank with branches everywhere, while others might prefer the sense of community you get with a local bank.
This list of best banks also takes into account the different banking services available. You might prioritize a free checking account over a high-yield savings account, for instance. In case you’re looking for a checking or savings account that earns money, we also included banks that pay interest on your savings account, CD, or money market account.
Frequently Asked Questions
What national banks are in Montana?
There are several national banks that have branches within the state of Montana, including U.S. Bank, Chase Bank, and Wells Fargo. If you live in Billings or Helena, Chase might work well for you, but otherwise, U.S. Bank and Wells Fargo will have the statewide coverage you need.
What is the most reliable bank?
Nothing’s guaranteed, but if you go with an FDIC-insured bank, you should be covered, even if you choose an online banking or extremely local bank. Large, corporate banks have a bigger asset base, so if stability is your biggest concern, that might be the way to go. However, there are plenty of FDIC-insured regional banks and small, local banks that are well-established and unlikely to go anywhere.
What Montana bank is ranked the best?
Opinions can vary from one source to another, so it’s important to look across multiple rankings to pull out some trends. When it comes to national banks with a large number of bank branches in Montana, U.S. Bank tops a lot of lists.
As for local banks, two banks receive quite a few mentions. Both Glacier Bank and Stockman Bank of Montana get high marks for their customer service and community focus. Since both of these options are among the best banks for keeping fees low, they’re worth considering.
What should I look for in a Montana bank?
With so many Montana banks, it can be tough to narrow it down to just one. Once you’ve ensured a bank is FDIC insured, it’s a matter of weighing the cost against the rewards. That includes perks like rewards for debit card transactions and checking accounts that pay interest. Here are some factors to consider as you’re researching the best banks.
Overall Better Fee Structure
You’ll see plenty of banks that offer free checking account options, but it’s important to look at the big picture. You’ll see account fees charged for the following:
In most cases, you won’t be penalized for not using an account as long as it doesn’t sit dormant for a while, but it’s essential to look at that. Also consider ATM availability. If you think you’ll regularly need to withdraw cash, the best checking accounts will give you fee-free access whether you’re at home or traveling.
Easy-to-Achieve Fee Waivers
Most online banks and community banks have free checking. But many national and regional banks have strings attached to their free accounts. The best checking accounts have attainable fee waivers, if any at all. Pay close attention to banks that require a lot of debit card purchases every month if you tend to spend more using cash or a credit card.
Some fee waivers will also require a minimum daily balance. This goes for both checking and savings accounts. Before choosing an account, make sure you can maintain that balance, day after day, or be prepared to pay the fee.
Low (or No) Minimum Deposits
Banks often require a small deposit on the account holder’s part to establish checking and savings. But you’ll find plenty of free online banking and smaller local banks that waive the minimum deposit to let you get started with no money whatsoever.
Among the banks that require an opening deposit, though, you’ll find options with small requirements. You might find a bank that lets you open a savings account with just $25 or $50 with a free or low deposit to establish checking. If it’s lower than what you’d put into savings with a different bank, that small checking deposit might be worth it.
Competitive Interest Rates
In addition to fees, you’ll also need to look at the return you’ll get on your savings. The best savings accounts offer a high yield without requiring a ridiculously high balance. Take a look at the interest rate and compare it to other banks to make sure you’re getting the best deal.
Variety of Accounts and Loans
Whether the account pays a higher interest rate is a great consideration, but there’s a benefit to having a one-stop shop. You might find community banks and credit unions offer highly competitive interest rate options on personal loans.
Being an account holder might even get you a discount on auto loans and mortgages. Although you can always shop for loans with other banks, some people prefer to have everything in one place.
Digital banking
Over the years, banking has moved to mobile devices and websites. Whether you go with a large or small bank, take a quick look at the digital offerings. The app should make it easy to pay bills, transfer funds, and keep an eye on your accounts. You might find an online bank gives you better options in this area, particularly if you don’t need to visit a local branch and you rarely deposit cash.
Most importantly, make sure the bank’s mobile app works with your particular mobile device. The app can’t help you at all if you can’t access it. Even if you rarely use the app, it’s a handy tool to have if you suddenly need to take a look at your account when you’re away from your computer.
The best savings accounts and checking accounts offer all the amenities you need while also keeping your balances strong. With so many banks and credit unions in Montana, it’s fairly easy to find a solution that will meet your own needs.
When it comes to smart money decisions, understanding a ledger balance is key. A ledger balance is an important tool for small business owners and investors that helps track their financial health in real-time. It’s the foundation of any successful budgeting or investing strategy, but how exactly do you calculate your own? In this article, we’ll discuss what a ledger balance is, why it matters and how to calculate yours accurately – so you can make better-informed money decisions!
What’s Ahead:
What is a Ledger Balance?
A ledger balance is a record of all the financial transactions that have taken place in an account. It is used to track and monitor the money coming into and out of an account, such as income, expenses, investments, loans, etc. You can use the ledger balance to determine how much money is available for spending or investing at any given time.
Definition of a Ledger Balance
A ledger balance summarizes all financial activity within an account over a certain period. It shows the total amount owed (debits) versus the total amount received (credits).
Components of a Ledger Balance
The components of a ledger balance include debits and credits from various sources, such as deposits, withdrawals, transfers between accounts, or payments for goods/services. Debits are amounts subtracted from your account, while credits are amounts added.
For example, if you make two payments on your credit card bill totaling $200 each month, your debit would be $400 ($200 x 2). If you also deposit $500 into your checking account during this same period, your credit would be $500 ($500 x 1). Your net ledger balance after these transactions would be +$100 ($500 – 400 = +$100). This means that you now have an extra $100 in your checking account compared to before these transactions took place.
A ledger balance is integral to understanding your financial situation and making smart money decisions. In the next section, we’ll discuss using a ledger balance to help you make informed decisions about your finances.
Benefits of Maintaining a Ledger Balance
Maintaining a ledger balance is essential to the financial organization and record keeping. It can help you keep track of your finances, save time when preparing taxes, and ensure accuracy in all your financial transactions.
Improved Financial Organization
A ledger balance helps you stay organized by tracking all the money in and out of your accounts. You can easily view where each dollar goes and how much you have left to spend or save for future goals. This will give you a better understanding of your overall financial picture so that you can make informed decisions about spending, saving, investing, etc.
Accurate Record Keeping
By maintaining a ledger balance, you can accurately document every transaction made from each account – income or expenses – making it easier to audit if needed. This also allows for more efficient tax preparation since everything is already documented in one place instead of searching multiple documents for the same information.
Easier Tax Preparation
When filing taxes with accurate records on hand, such as those found in a ledger balance, it eliminates any guesswork or potential errors that could occur while manually entering data into forms or spreadsheets used during tax season. This information readily available saves time when filing taxes because there is no need to go back and look up specific details regarding certain transactions throughout the year; they are already recorded within the ledger balance!
By maintaining a detailed ledger balance throughout the year, individuals and small business owners can benefit from improved financial organization, accurate record-keeping practices, and easier tax preparation processes come April 15th. These benefits will help ensure that all finances are properly tracked and documented for future reference and provide an efficient way to file taxes without any guesswork or potential errors.
Maintaining a ledger balance is essential to keeping your finances organized and up-to-date. In the next section, we’ll discuss setting up a ledger balance and tracking your transactions.
The Gist: Maintaining a ledger balance is essential to the financial organization and record keeping. It can help you stay organized, accurately document transactions, and simplify tax preparation: • Improved Financial Organization • Accurate Record Keeping • Easier Tax Preparation. A detailed ledger balance throughout the year provides individuals and small business owners with efficient ways to track finances, ensure accuracy in all their financial transactions, and save time when filing taxes.
How to Calculate Your Ledger Balance
It helps you stay organized and keep accurate records, making tax preparation easier. Knowing how to calculate your ledger balance is essential for small business owners and investors. Here’s what you need to know about calculating your ledger balance:
Step 1: Gather All Relevant Financial Documents
The first step in calculating your ledger balance is gathering all the relevant financial documents related to the account or accounts you want to track. This includes bank statements, credit card bills, investment portfolios, loan agreements, etc. Make sure all these documents are up-to-date so that you have an accurate picture of where you stand financially.
Step 2: Add Up All Debits and Credits
Once you have gathered all the necessary documents, it’s time to add up all debits and credits associated with each account or transaction. A debit is any money taken out of an account, while a credit is any money put into an account (including interest earned). When adding debits and credits for each transaction or account, be sure to include fees and taxes paid on investments, if applicable.
Step 3: Subtract Debits from Credits To Get The Final Amount
After adding debits and credits for each transaction or account, it’s time to subtract them from one another to get the final amount owed or due on each item/account/transaction listed in Step 1 above. For example, if there were $500 worth of debits associated with a particular bank statement, subtracting this number from $1000 worth of credits would give us a total remaining balance due on that particular statement of $500 ($1000 -$500 = $500). Once we do this for every document we gathered in Step 1, our overall ledger balance should be accurately calculated!
Knowing how to calculate your ledger balance can help ensure everything adds up correctly when it comes time to file taxes or make other financial decisions, such as investing in stocks and bonds. Keeping track of income versus expenses will also help small business owners budget accordingly, so they don’t overspend beyond their means.
Once you have gathered all your financial documents, added up the debits and credits, and subtracted them to get the final amount, you will be able to calculate your ledger balance. Next, we’ll look at how to use this information to make intelligent money decisions.
The Gist: Calculating your ledger balance is integral to managing finances. It helps you stay organized and make accurate records for tax preparation, budgeting, and investing decisions. Here are the following steps: 1. Gather all relevant financial documents 2. Add up all debits and credits 3. Subtract debits from credits to get the final amount owed or due
Tips for Maintaining an Accurate Ledger Balance
Maintaining an accurate ledger balance is essential for any individual or business to ensure their financial records are up-to-date and accurate. Here are some tips that can help you stay on top of your finances:
Keep Track of All Transactions Regularly
It’s essential to keep track of all incoming and outgoing transactions to understand where your money is going clearly. This includes recording deposits, withdrawals, transfers, bills paid, etc. Doing this regularly will help you stay organized and prevent errors from slipping through the cracks. Additionally, reviewing these transactions periodically ensures everything adds up correctly.
Double Check Your Math Before Finalizing Entries
When entering numbers into your ledger balance sheet or other financial documents, it’s always best practice to double-check your math before finalizing entries. Even if you think something looks correct at first glance – take the extra time to verify accuracy by running calculations twice just in case you made any mistakes. This will save you time and energy when reconciling accounts or preparing tax returns!
Utilize Automated Accounting Software When Possible
Technology has come a long way in recent years, making tracking finances more manageable! Utilizing automated accounting software such as QuickBooks or Xero can be extremely helpful when managing multiple accounts simultaneously, as they provide real-time updates with each transaction entered into them. Not only does this save time, but it also helps reduce the human error associated with manual entry processes – making it much more efficient overall!
Overall, maintaining an accurate ledger balance is key for anyone looking to manage their finances properly and efficiently over time – whether they’re a small business owner or simply trying to budget better personally. By following these simple tips outlined above (keeping track of all transactions regularly, double checking math, utilizing automated accounting software), individuals should be able to set themselves up for success in no time.
Maintaining an accurate ledger balance is essential for making sound financial decisions. With these tips, you can stay on top of your finances and make smart money moves.
The Gist: Maintaining an accurate ledger balance is essential for any individual or business to keep their financial records up-to-date and accurate. To do this, it’s vital to • Keep track of all transactions regularly • Double check math before finalizing entries • Utilize automated accounting software when possible By following these tips, individuals can set themselves up for success in managing their finances efficiently over time.
The Importance of a Ledger Balance for Small Business Owners and Investors
A ledger balance is integral to managing your finances, especially for small business owners and investors. A ledger balance is the total amount of money combined in all accounts. It’s calculated by subtracting all debits from credits to get the final amount. A clear understanding of your ledger balance can help you make better financial decisions and stay on top of your finances.
Why It Matters for Small Business Owners
For small business owners, having an accurate record of their ledger balance is essential to running their businesses efficiently and effectively. Knowing exactly how much money they have in each account helps them plan for budgeting, taxes, payroll, and other expenses. Additionally, keeping track of their ledgers allows them to quickly identify any discrepancies or errors so they can be addressed immediately before they become more significant problems.
Why It Matters for Investors
Investors also need to keep close tabs on their ledger balances because it gives them insight into how well their investments perform over time. By regularly monitoring changes in their ledgers, investors can determine if certain investments are worth continuing or if adjustments need to be made based on current market conditions or other factors that may affect returns on investment (ROI). This information can then be used as a guide when making future investing decisions.
Overall, a good understanding of one’s ledger balance is critical for small business owners and investors alike, as it provides valuable insights into where funds are coming from and going at any given moment in time. This ultimately leads to more informed decision-making about personal finance management strategies.
A clear understanding of your ledger balance is essential for small business owners and investors alike, as it allows them to make informed decisions about their financial future. Next, we’ll discuss why it matters for small business owners.
The Gist: A clear understanding of your ledger balance is essential for small business owners and investors. It allows them to keep track of all their accounts, quickly identify discrepancies or errors, monitor investments’ changes over time, and make more informed decisions regarding budgeting, taxes, payrolls, and other expenses. Key takeaways include: • Subtracting debits from credits to get the total amount • Monitoring ledgers regularly for any discrepancies or errors • Keeping track of investments’ performance over time • Using ledger information as a guide when making future investing decisions.
FAQs about What Is a Ledger Balance
Can we withdraw money from the ledger balance?
No, you cannot withdraw money from your ledger balance. Ledger balances are a record of the transactions that have occurred in an account and do not represent actual funds available for withdrawal. You must transfer funds to another account or use a payment method such as a debit card or check to access funds.
How long does the ledger balance take to be available?
The availability of a ledger balance depends on the financial institution you are using. Generally, most banks and credit unions will update your account information within 24 hours. However, if you have recently made a deposit or withdrawal from an ATM, it may take up to 3 business days for the transaction to be reflected in your ledger balance. Additionally, suppose you have recently transferred funds between accounts at different institutions. In that case, it could take up to 5 business days for the transfer to be completed and reflected in your ledger balance.
How do I make my ledger balance available?
The best way to make your ledger balance available is to use online accounting software such as QuickBooks or Xero. These programs allow you to easily track and monitor your financial transactions, giving you a real-time view of your current finances. Additionally, they provide helpful features like budgeting tools and automated reminders to help you stay on top of your money management goals. With these services, you’ll be able to quickly access and review your ledger balance whenever needed.
Can I transfer the ledger balance to the bank account?
Yes, you can transfer your ledger balance to a bank account. This is typically done through an online banking platform or app. It’s important to double-check the transaction details before confirming it, as mistakes may be costly and time-consuming to fix. Additionally, there may be fees associated with transferring money from one account to another, so understand those costs beforehand.
Conclusion
It allows you to track your financial activity and make informed decisions about where to invest or how much money to allocate for certain expenses. By understanding the basics of calculating and maintaining a ledger balance, you can ensure that your finances are in order and that you’re making smart money decisions. So take some time today to review your ledger balance and get on the path toward financial success!
In a digital age where convenience is king, the idea of writing checks, stuffing envelopes, and running to the post office to pay your bills seems almost antiquated. Instead, many people are turning to online bill pay, a system that lets you manage and pay bills from one central location.
What is online bill pay?
Online bill pay is a modern solution that revolutionizes the way we manage and pay our bills. It is a digital service provided by banks, credit unions, and financial institutions, offering a secure and convenient platform for handling various bill payments.
Whether you have one-time payments or recurring bills like utilities, online bill pay allows you to streamline the payment process. Instead of traditional methods like writing checks or mailing payments, online bill pay lets you pay your bills with just a few clicks.
How does online bill pay work?
Here’s how online bill pay works: once you set up online bill pay, you can schedule payments to be made from your checking account either immediately or on a future date. You can manage your one-time payments or recurring payments with ease, knowing that your bank or credit union will ensure the payment gets to your service provider.
Some online bill pay services also allow you to receive electronic bills directly in your online account, saving you from having to keep track of paper bills. Once you have your online bill pay setting configured, paying bills becomes a breeze.
See also: Best Online Checking Accounts of June 2023
Benefits of Using Online Bill Pay
Online bill pay offers a plethora of benefits that can make your financial life easier and more organized. Let’s explore these benefits in detail.
Budgeting and Tracking Expenses
Online bill pay provides a centralized platform where you can conveniently manage all your bill payments. This consolidation offers several advantages for budgeting and tracking expenses:
Consolidated view: With online bill pay, you can view all your bills and their due dates in one place. This makes it easier to plan and allocate funds accordingly, ensuring you don’t miss any payments.
Payment history: Most online bill pay services maintain a record of your payment history. This allows you to review past transactions, track your spending patterns, and identify areas where you can potentially cut costs or adjust your budget.
Real-time balance updates: Some online bill pay platforms offer real-time updates on your account balances. This feature helps you stay on top of your finances by providing an accurate picture of how much money you have available for online bill payments and other expenses.
Saving Money and Avoiding Late Fees
Late payments can lead to unnecessary fees and even impact your credit score. Online bill pay can save you money by helping you avoid these financial pitfalls:
Timely payments: With online bill pay, you can set up automatic payments, ensuring your bills are paid on time. By doing so, you eliminate the risk of forgetting or missing a payment deadline, thereby avoiding late fees.
Payment reminders: Many online bill pay platforms offer reminder notifications that alert you before a bill is due. These reminders can help you stay organized and prompt you to make timely payments.
Interest savings: Making timely payments through online bill pay can save you from accruing interest charges. By paying your bills on time, you can minimize the interest that would have otherwise accumulated, especially for credit card balances or loans.
Electronic Records and Organization
Keeping track of paper bills and receipts can be cumbersome and time-consuming. Online bill pay simplifies this process by providing electronic records of your payments:
Document storage: Online bill pay platforms often allow you to store and access electronic copies of your bills and payment receipts. This eliminates the need for physical paperwork, reducing clutter, and making it easier to find specific documents when needed.
Search and filter options: Many online bill pay services offer search and filter functions, enabling you to quickly locate specific bills or payments. This can be particularly helpful during tax season or when reviewing your financial history.
Accessibility and mobility: Online bill pay lets you access your payment records from anywhere, as long as you have an internet connection. This mobility ensures that you can review your bills and payment history on the go, making it easier to stay organized even when you’re away from home.
Drawbacks and Potential Risks of Online Bill Pay
While online bill pay offers numerous benefits, it’s important to be aware of the potential drawbacks and risks associated with this service. Understanding these risks can help you take appropriate precautions to protect your financial information. Here are some considerations:
Internet Security Concerns
One of the primary concerns with online bill pay is internet security. Anytime you handle sensitive bank account information online, there is a risk of hacking or phishing attempts. Cybercriminals may try to gain unauthorized access to your account or personal information.
However, it’s crucial to note that most financial institutions prioritize customer security and employ robust security measures to keep your data safe. Some common security practices include encryption, secure login procedures, and multi-factor authentication.
To mitigate the risk of internet security threats, it’s essential to follow best practices:
Use strong and unique passwords for your online banking accounts.
Be cautious of phishing attempts and avoid clicking on suspicious links or providing personal information through unsolicited emails or phone calls.
Regularly update your devices and software to protect against known vulnerabilities.
Monitor your accounts regularly for any suspicious activity and report any unauthorized transactions to your financial institution immediately.
System Errors or Failures
While rare, system errors or failures can occur when using online bill pay services. These technical glitches could potentially result in missed payments or delays in processing. However, financial institutions typically have systems in place to rectify such issues promptly.
To minimize the impact of system errors or failures:
Double-check your payment history and account balances after initiating transactions to ensure they are processed correctly.
Set up payment reminders or notifications to stay informed about upcoming payments.
Maintain a buffer of funds in your account to account for any unexpected delays or errors in payment processing.
Processing Time
One important consideration when using online bill pay is the processing time required for payments to be completed. While the exact timing may vary depending on the financial institution and the specific payment recipient, it may take several days for the online payment to process. This means that you should plan your payments accordingly to ensure they reach the recipient by the due date.
To avoid late payments due to processing time:
Initiate your bill payments in advance, especially for bills with strict due dates.
Familiarize yourself with the payment processing timeframes of your financial institution to ensure timely payments.
Consider setting up automatic recurring payments for bills with consistent amounts and due dates to ensure timely payments without manual intervention.
How to Get Started with Online Bill Pay
Getting started with online bill pay is typically straightforward. Most banks and credit unions provide this service for free to their checking account or money market account holders.
Here’s a step-by-step guide to help you get started:
Log into your online banking account: Visit your bank or credit union’s website and log in using your username and password.
Navigate to the bill pay section: Once logged in, look for the bill pay section or tab. This is usually located within the online banking platform.
Add new payees: Within the bill pay section, you’ll have the option to add new payees. Provide the necessary information, such as the payee’s name, account number, and address where the payments should be sent.
Specify payment details: For recurring payments, you’ll be prompted to specify how often and when the payment should be sent. This can be weekly, monthly, or at custom intervals. For one-time payments, you’ll need to specify the payment amount and the date it should be sent.
Review and confirm: Before finalizing the setup, review the payment details to ensure accuracy. Once everything is verified, confirm the setup, and your online bill pay is ready to go.
It’s worth noting that the exact steps and interface may vary slightly depending on your bank or credit union. If you encounter any difficulties, consult the bank’s customer support or refer to their online resources for guidance.
Best Practices for Using Online Bill Pay
To get the most from your online bill pay service, it’s important to monitor your account balances regularly and ensure you have enough funds to cover your scheduled payments. Setting up alerts and notifications can help you keep track of your payment schedule and account balances.
Using automatic payments responsibly is also crucial. While they can be a convenient way to avoid late fees and improve your credit score, they can also lead to overdrafts if you’re not careful.
Conclusion
In summary, online bill pay provides a secure, convenient, and time-saving method for managing and paying your bills. From setting up recurring payments for monthly utility bills to scheduling future one-time payments, online bill pay services can help you streamline your financial tasks.
While there are potential risks involved, such as internet security threats and system errors, these can be mitigated with vigilance and good security practices. Whether you choose to use your bank account, debit card, or even a credit card for your payments, online bill pay can be a valuable tool in managing your finances.
Just remember, while online bill pay can make your life easier, it’s still important to monitor your accounts and payments regularly. This will help you avoid any potential issues such as overdrafts or missed payments, keeping your financial life running smoothly.
Opening a bank account for your teen is a great way to begin teaching financial responsibility and money management. If your teen’s account is linked to yours, it’s also a convenient way to pay them an allowance, reward them for good grades, or even transfer money for pizza when your teen is out with friends.
It’s no wonder a recent Fidelity study reported that 49% of teens in the U.S. have opened bank accounts. But which checking account is best? And what should you look for in checking accounts for teens?
10 Best Teen Checking Accounts
While there are many options available for teen checking accounts, parents frequently choose to establish accounts for their teens at their own primary banking institutions. This list includes many top national banks.
Their inclusion isn’t necessarily due to their teen checking accounts offering the highest interest rates or the most features. Instead, their comprehensive services for adults and strong reputations make them a viable consideration.
1. Copper Card
Copper Bank, Member FDIC, is a federally insured online bank dedicated to helping kids and teens learn how to manage money. Copper Bank has invested more than $1 million in high school financial literacy and the app helps teach kids the basics of investing.
Copper accounts are available to kids ages 6 and up, as long as they have their own mobile phone number separate from the adult account holder. Children and teens receive a Copper Spending Account debit card that is compatible with Google Pay and Apple Pay. Users can also use the debit card for fee-free transactions at 55,000+ ATMs nationwide.
Copper offers a ton of enticing features parents and teens will love. First, there are no overdraft fees, no minimum balance, or maintenance fees. Parents will pay a small fee of 2.5% + 30 cents of the total transaction for an “instant transfer” from a linked debit card. Otherwise, it can take 3 to 5 business days for funds to arrive in the Copper account.
Copper makes banking convenient for parents and rewarding for kids. Parents can set up automatic transfers for allowance, or can even transfer money automatically when the Copper account drops below a specific number.
Copper lets kids round-up their debit card transactions to be automatically transferred into their linked savings account. Users can set specific savings goals and earn interest with up to 5% annual percentage yield. This can motivate kids to save as they watch their money grow.
Copper also allows kids and teens to invest, starting with as little as $1. Investing is automated based on your child’s risk profile, and Copper even reinvests dividends and uses dollar-cost averaging to set your child up for investment success and good habits for life.
2. USAA Youth Spending Account
USAA offers a joint account that a parent or legal guardian can open with a child of any age. The USAA Youth Spending Account includes a debit card that allows the adult account holder to increase or decrease daily spending limits. Children can use their card at point-of-sale transactions and without fees at any of 100,000 preferred ATMs in the USAA network.
Once the child turns 13, you can use the mobile app to give them the ability to transfer money, make remote deposits, and more.
When your child turns 18, the USAA Youth Spending Account will be converted automatically to a USAA Classic Checking account. You can choose to stay on as a joint account holder to help your teen manage their money while they are away at college or in the military.
The USAA Classic Checking account has no monthly fee for college students or members of the military.
There are a few things to be aware of before you open the banking account:
USAA is available only to veterans, active duty military, national guard, reservists, military spouses and others who meet a few criteria related to the U.S. Armed Forces
The USAA Youth Spending Account requires a $25 minimum opening deposit
Your child will earn .01% annual percentage yield if they maintain a daily balance of $1,000 or more
3. PNC Bank Student Banking
PNC Bank offers a VirtualWallet student account for teens and young adults ages 16 and up. Teens under 18 will need to open a joint account with a parent or legal guardian. College students may have to show proof of enrollment. After six years, the student account becomes a regular PNC Bank Virtual Wallet account, with all the same features and benefits.
The Virtual Wallet account includes a “Spend” primary checking account, a “Reserve” savings for short-term savings and a “Growth” account for long-term savings for big ticket items or to build up emergency cash reserves.
The Virtual Wallet has no monthly service fees for students and includes fee-free ATM withdrawals at PNC Bank ATMs. Teens and adults, alike, receive ATM rebates for the first two non-PNC bank ATM withdrawals and up to $5 in ATM fee reimbursements per statement period for ATM surcharges collected by other financial institutions.
Unlike some student bank accounts, which decline transactions that would put your account in the negative, the PNC Bank Virtual Wallet offers one automatic courtesy refund of Overdraft item fees per month. However, the Virtual Wallet’s Low Cash Mode makes it easy to avoid overdrafts with alerts that tell you when your spending balance drops below a certain point.
You can also use Payment Control to choose to pay or return certain ACH transactions if your account balance is negative.
4. Wells Fargo Clear Access
Wells Fargo Clear Access is designed for teens ages 13 and up, as well as previously underbanked or unbanked customers. It’s considered a “second chance” bank account, but the lack of overdraft charges and no monthly fees also makes it great for teens just learning financial responsibility.
Be aware that children under 18 cannot open an account online. They must open the bank account at one of the 4,800 Wells Fargo branch locations nationwide.
Clear Access has no monthly fee for account holders ages 13 to 24. Teens 16 and under will need a joint account holder who is over the age of 18.
Wells Fargo Clear Access was certified by the Bank on National Account Standards as meeting the requirements for safe and affordable bank accounts with no overdraft fees. A straightforward account with few bells and whistles, the account includes access to the user-friendly Wells Fargo mobile banking app and mobile check deposits. You also get Zelle person-to-person payments and a debit card compatible with digital wallets like Google Pay.
There are no overdraft fees with Clear Access, but transactions that would bring your account into the negative are likely to be declined. There is no minimum balance requirement, but you’ll need a $25 minimum opening deposit.
5. Chase First Banking Account
The Chase First Checking Account is available to kids ages 6 to 17 and has no monthly fees. To open an account for your teen or tween, you must have a qualifying Chase checking account, such as Chase Total Checking.
It’s easy to open an account online and make transfers from your account to the Chase First Banking account in the mobile app. You can set up automatic recurring transfers for allowance or approve requests from your child for money.
Set a spending limit for general spending or for specific purposes. You can even create a list of approved stores where your child can shop with their debit card. For existing Chase customers, Chase First is one of the smartest choices for a teen checking account due to the convenience and easy parental controls.
6. Capital One MONEY Teen Checking Account
The Capital One MONEY Teen checking account is one of the most popular checking accounts for kids. You don’t need a Capital One account to open a MONEY account with your kids, as the account can accept external transfers.
The account is available for kids ages 8 and up. Once the teen turns 18, they can convert it to a Capital One 360 Checking Account of their own with no monthly fee.
Unlike Chase, Capital One MONEY Teen pays interest on checking account balances. It’s only 0.10% annual percentage yield, but it is enough to begin teaching kids the value of compounding interest. Capital One’s teen product has no monthly service fee, no minimum balance requirement, and no minimum opening deposit.
Through the mobile app, kids and teens can set savings goals, designate funds in “savings buckets” or for spending with their Capital One Mastercard debit card, and make withdrawals at any Capital One or AllPoint ATMs with no fees.
Parents can make automatic transfers for allowance, set up one-time transfers, and even pay kids rewards if they meet specific savings goals. You can track spending and view transactions in the mobile app or set up text alerts.
7. Bank of America Advantage SafeBalance
Unlike the other three largest national banks in the U.S., Bank of America does not have a dedicated teen checking account. However, Bank of America customers can open a joint account with their child who is age 13 or older and give them access to their own debit card.
Bank of America recommends the Advantage SafeBalance bank account for teens and college students under 25. There is no monthly fee on the account if one of the account holders is under 18, or under the age of 25 and a student, or if any of the account holders are members of Bank of America Preferred Rewards.
A straightforward, checkless account, BofA calls SafeBalance “a smart start for students.” Kids ages 16 and up can be sole owners of the account, but you might choose to be a joint account holder for convenience.
The SafeBalance account doesn’t have a lot of bells and whistles, but it is a great way to get your child set for the future with an account at a nationwide, reputable bank with 4,000 branch locations nationwide.
8. Axos Bank First Checking
Axos Bank First Checking offers a checking account where you can earn interest. It pays a 0.10% annual percentage yield on all balances. It is available for teens ages 13 to 17, with an adult account holder.
Axos First Checking boasts no monthly maintenance fee, no overdraft fee, and reimburses up to $12 per month in out-of-network ATM surcharges.
Be aware that your child can only make $500 in debit card purchases per day and can only withdraw up to $100 per day at ATMs.
Axos Bank is consistently rated one of the best for online banking by top personal finance websites. The First Checking account is a straightforward way to teach teens financial independence and the ease of online banking.
9. Connexus Credit Union Teen Checking Account
Connexus is a top-rated credit union that’s easy to join with a one-time donation to become a member of the Connexus Association. The Connexus Credit Union Teen Checking account offers up to 2.0% annual percentage yield with zero monthly service fees, free ATM transactions within the Co-Op or MoneyPass networks, and overdraft protection with linked accounts.
Kids ages 10 to 17 can open a teen checking account to earn a high APY. When they turn 18, the credit union will transition their teen account into a Connexus Innovative Checking account with no monthly fees.
Young adults can choose to convert the account into an Xtraordinary checking account through the credit union to earn interest. The Xtraordinary account offers up to 1.75% APY when you make 15 debit card purchases or spend $400 with your debit card.
10. Alliant Credit Union Teen Checking
Alliant Credit Union has won awards from top personal finance sites as one of the best credit unions in the country. With no monthly service fees and no overdraft fee, it’s a straightforward account that will introduce teens to the personalized service of credit unions.
Teens can earn interest with a rate of 0.25% APY on their checking account balance. Keep in mind, to earn that high yield, they will need to opt in to receive eStatements and make at least one electronic deposit per month.
As with a regular Alliant credit union account, your teen will receive up to $20 in ATM fee reimbursements per month, and pay no fees at 80,000+ ATMs nationwide.
Alliant Credit Union Teen Checking is one of the few teen checking accounts that provides overdraft protection. If you sign up with a linked savings account, Alliant Credit Union Teen checking will automatically transfer funds from savings to cover debit card purchases.
You will need a $25 minimum deposit to open an account with your teen, ages 13 to 17.
Prepaid Debit Cards for Kids
If you feel your child or teen isn’t ready for a checking account, you might consider a prepaid debit card for kids, instead. Products like Greenlight, Cash App, Revolut<18 are not your typical banking account, but are prepaid debit cards that provide kids with easy access to money.
1. Greenlight
Greenlight is one of the original names in pre-paid debit cards for kids and teens. Greenlight offers three different plans with the following monthly service fees.
Greenlight Core: $4.99/month
Greenlight Max: $9.98/month
Greenlight Infinity/$14.98/month
Each plan includes debit cards for up to five children or teens, access to the app, and parental controls. After that, these plans vary somewhat in their offerings.
The Core plan pays 1% interest. Greenlight Max pays 1% cash back on your child’s debit card purchases, deposited automatically into their savings account to earn 2% interest.
Greenlight Infinity also pays 1% cash back on purchases. It pays 5% APY on savings. But Greenlight Infinity is much more than just a debit card or money account. It’s also a family safety and protection app that provides the ability to send and receive SOS alerts, crash detection that automatically alerts 911 in the event of a car crash, and family location sharing.
Greenlight has vast capabilities for money management, including the ability to set limits on spending, reward kids with deposits for chores or accomplishments such as high grades, and pay a monthly allowance.
Kids can create a customized card, as well, which often appeals to teens.
2. Cash Card
Cash App is the popular person to person payment app that comes with a debit card you can use for online or in-store purchases. Now, everyone age 13 and up can gain access to a customized Cash Card of their own.
Cash Card is an easy-to-use card that allows you to send and receive money from external accounts or from friends and family who also use Cash App. You can use Boosts in Cash app to find savings on everyday items from popular stores. Boosts are a great way to teach kids how to save money while shopping.
There is no minimum deposit to open a Cash App account.
3. Revolut
Revolut has no monthly service fee and links to an external account or your Revolut online bank account. You can set spending limits and receive alerts when your child uses their debit card.
You can also assign “tasks” to your kids and set up instant transfers from your account when the task is complete. You can also set up automatically allowance payments, or create a list of chores and put money directly on your teen’s debit card when that chore is done.
Features to Consider for Opening a Teen Checking Account
The features you’ll find in the best free checking accounts for adults should also apply to teen checking accounts. Most of the best teen checking accounts on our list meet the following requirements.
No Monthly Maintenance Fees
You don’t want to pay money so your teen can learn about managing money. Teach your teen early on that some of the best things in life – including their checking account – can be free.
Low Minimum Balance Requirements
Look for an account with no minimum opening deposit and no minimum balance requirements. Fortunately, even banks that have minimum balance requirements to waive fees for other checking accounts typically have no requirements for free checking for teens.
Low or No Fees
Make sure there are no ATM fees, no overdraft fees, and no hidden fees for any reason. Most teen checking accounts will decline a purchase rather than put the account into overdraft, which can help teens build financial responsibility and learn money management.
Linked Savings Accounts
When you’re evaluating a teen checking account, you may also want to look for a linked savings account with savings buckets, so your teen can set goals and plan for future purchases. Compare interest rates on teen accounts, discuss the other features and benefits, and enroll your teen in making the choice with you.
Parental Controls
You should be able to lock and unlock your teen’s checking account within the mobile app, set spending limits, and even designate certain funds to be used only for specific purposes.
Online Banking Through a Desktop Portal or Mobile App
Teens today are tech savvy. Fortunately, most teen bank accounts – even those from brick and mortar banks and credit unions – include an easy to use mobile app with separate logins for teens and their parents.
Direct Deposit
Features like direct deposit may not be as important, unless your teen is working and wants their paychecks deposited into their account. Most of the bank accounts on this list, however, do offer the service. Some even deposit funds up to two days earlier than usual.
It’s a nice bonus when teen checking accounts can be converted into a regular checking account once your child reaches adulthood.
Pros and Cons of Bank Accounts for Teens
As you evaluate the features of these teen checking accounts, you might wonder if it’s even worthwhile to open a checking account for your teen. Opening a bank account for your teen can help them develop good personal finance habits early on.
Let’s consider other benefits and drawbacks of checking accounts for teens.
Pros
Conveniently transfer money from your linked account, wherever you are
Teach children and teens about saving and investing
Teach the basics of using a mobile banking app
Build financial responsibility
Money is protected by the Federal Deposit Insurance Corporation up to $500,000 for joint accounts
Cons
Teens unfamiliar with budgeting may spend more with a debit card handy
Some financial institutions charge fees
Your teen may lose their debit card, creating a security risk
You may need to make a minimum deposit to open the account
When all is said and done, the benefits of teen checking accounts far outweigh any inconveniences. Just make sure to choose a banking account with no minimum deposit requirements or monthly service fee at a bank or credit union that offers responsive customer service.
Also, make sure you can keep tabs on your teen’s spending through alerts or a mobile app.
How to Choose a Teen Checking Account
Now that we’ve explored some of the best checking accounts for teens, you may have already made your choice. If not, here are some aspects to think about when choosing the best checking account or prepaid spending account for your tween, teen, or college student.
Choose the Type of Teen Account You Want (Checking Account vs. Savings Account)
First, think about whether you want a prepaid debit card, a checking account, a savings account, or both. Do you want to choose a money account from a bank or credit union? Would you prefer to open the account at a brick and mortar bank or are you and your teens comfortable banking online only?
The answers to these questions should give you a good place to start.
Consider the fee menu (monthly service fees, recurring transactions, ATM withdrawals, card reload, etc.)
It shouldn’t cost money to teach your teen money management. Consider any fees related to the account. Similarly, you might prefer a bank or credit union with no minimum deposit to open an account.
Some of the best teen checking accounts pay interest, which is a great incentive to help your teen start saving money and to put a little extra money in their pocket.
Consider the Age and Responsibility Level of your Teen
Most of the best teen checking accounts feature alerts for parents through text or an app, capabilities to freeze spending or set limits, and turn off the debit card in the app in case it’s lost or stolen. These are good capabilities as your teen learns how to manage money.
Because you can’t spend every minute tracking your teen’s finance, however, you also want an account that will either decline transactions that would put the account into the negative, offer overdraft protection, or waive overdraft fee.
How to Open a Teen Checking Account
When you’re ready to open a checking account for your teen, you’ll want to make sure you have their date-of-birth and Social Security number handy, as well as your own. Make note of any minimum deposit requirements, as well, and have a plan in place to fund the account.
Fund the Teen Checking Account and Activate the Debit Card
Most teen checking accounts will allow you to make a deposit from an external account or make a mobile check deposit in the app. If your teen works, you can have them request a form to have their paycheck deposited automatically via ACH transfer.
If you open a teen account with Chase, Bank of America, or other big banks, you can easily transfer funds from your linked internal account in minutes.
Once your teen receives their debit card, you will want to show them how to activate it by calling the number on the card or setting up their PIN at an ATM within the network. Let them know that their PIN should be easy for them to remember, but hard for anyone else to guess. They shouldn’t use their birthday or the last four digits of their phone number, for instance.
Frequently Asked Questions
Do teen checking accounts have monthly fees?
Most of the best checking accounts on our list do not have maintenance fees, service fees, or ATM fees.
Can a minor have a checking account?
Yes, a minor can open a checking account jointly with a parent or guardian.
What happens to a teen checking account when I turn 18?
Some of the best teen checking accounts automatically convert to regular checking accounts when the child turns 18.
Can I open a teenage bank account online?
You can open many of the checking accounts on this list online. However, to open a Wells Fargo Clear Access account for a person under the age of 18, you’ll need to visit a brick and mortar branch.
What is the minimum age to open a teen checking account?
Some teen checking accounts are available to children as young as six years or eight years old, as long as they are opened jointly with a parent or guardian. Teens 18 and older can open an account on their own. Many student checking accounts designed for young adults ages 18 to 25 have no fees for college students.
How much money should you keep in your teenager’s checking account?
How much money you keep in your teen’s checking account will depend on a variety of factors. How much can you afford to pay in allowance or fees for chores per month? Is your child earning any money of their own they can deposit? Do they typically receive cash gifts for birthdays or holidays?
Keep in mind, funds in teen checking accounts are FDIC insured up to the federal limit of $250,000 per account holder, per account type. In the case of jointly held accounts with a parent and a minor account holder, these accounts are insured for $500,000 in total, or up to $1 million if you have linked checking and savings.
Closing a bank account and opening a new one can be tricky.
Banks like to keep customers, so they make the closing process complicated.
The “hassle factor,” or the million-and-one little things you have to do before a task is complete, is one of the biggest reasons people don’t switch banks. Another reason is that people don’t feel like they know enough about other account options.
Breaking the process down into steps can help. Overall, it’s easier than you think. And the savings, in money or convenience, will usually be worth it.
Follow the three steps and you’ll be able to switch banks with as little stress as possible.
What’s Ahead:
1. Find a new bank account first
Open the new account before closing the old one. That way your automatic transactions can continue smoothly without a gap in between.
If you haven’t already picked a new bank, do some research on different banks’ requirements, perks, and fees. Here’s what you want to look for:
Services the new bank offers that your old one doesn’t. These could be simple tweaks, like an easier-to-use mobile app, or major financial services like CDs and retirement accounts.
Interest rates. If you’re switching savings accounts, compare the interest rate you’re getting on your current account versus what you might get with a new account. Some banks offer interest-bearing checking accounts, too.
The convenience factor. Can you navigate the new bank’s website? How easy is it for you to find and use their ATMs? How quickly can you set up autopay or other day-to-day transactions?
Customer assistance options. Ideally, you’re looking for a bank or credit union that makes it easy to contact a representative if you need help, and gives you contact options you’ll actually use. If you hate talking on the phone, for instance, maybe the new bank has an email or live chat feature.
Other factors will vary from person to person, like:
Your future needs. If you’re hoping your new bank will give you a mortgage loan or help you set up investment accounts down the line, find a place that offers these services.
Your banking style. Some people love online-only banking. Others want to meet with an actual person at a brick-and-mortar branch for big transactions.
Your local options. Many people prefer joining a local credit union, which is customer-owned, over signing up for a national bank. Credit unions and smaller banks have other perks, too, like better interest rates on loans for members.
Another perk of switching banks is that banks will often reward new customers. This means you may be eligible for cash rewards, temporary interest rate reductions, or other bonuses when you open a new checking or savings account.
See our current picks for the best checking account promotions and savings account promotions.
Go into the bank in person if you can, rather than opening an account over the phone (unless your bank is online). You’re more likely to get all your questions answered and you can ask directly about those potential bonus opps.
Although requirements vary depending on the bank, you’ll want to bring:
An official photo ID like a driver’s license, state ID, or passport.
Your Social Security number (you may not need your Social Security card, unless the bank specifically asks for it).
Cash, check, or payment info (routing and account number) for the opening deposit.
The minimum you’ll need to deposit will depend both on the bank and the type of account you’re setting up.
If you’re looking for a low minimum amount, or no fee required to open an account, your best bet is an online checking or savings.
Read more: Online banking vs. traditional banking
2. List and reroute any automatic transactions from your old bank
Now that you have a new bank account, it’s time to transfer your regular deposits and withdrawals. Start as soon as possible: this part may take a while if you have a lot of automatic transactions. It’s a good chance to review which services you’re spending money on (like video streaming services or memberships you forgot you had).
Here’s where your old bank statements come in handy. Get a list of your statements from the past year. Statements should be available online at your bank’s website if you don’t have paper copies.
This is a two-step process.
Step 1: Look over the past 12 months of transactions
Some automated transactions may be annual, so you might miss them in less than a year’s worth of statements. Note when deposits show up in your account and when payments are automatically withdrawn.
Keep some cash in the old account until this step is complete. You want to avoid missing scheduled payments or getting hit with overdraft fees. If you’ve written checks recently or if payments are pending, keep the old account open and funded until those payments clear.
Step 2: Switch over your deposits and payments
Once you know which deposits and payments to transfer, you can start switching them over to your new account.
If you get direct deposit from your employer, submit your new bank info (via a canceled check or just a routing and account number).
Reroute any automatic payments to your new account as soon as you can, since the change may take a few days or weeks to finalize. Some billers require notice up to a month in advance for new payment info.
Read more: How to set up direct deposit
3. Close the old account for good
Read up on your bank’s procedures for closing an account first. Some banks will let you close an account by mail, online, or over the phone; some require you to show up in person.
This list collects info on how consumers successfully closed accounts at multiple American banks. But since procedures may change, your best bet is to ask the bank directly how it’s done.
Close the account in person, if possible
I recommend closing the account in person if time and convenience allow.
A bank visit makes it easier for you to get the transaction in writing. “Zombie accounts” sometimes come back from the dead — a closed account might get reactivated if you forgot to reroute an automatic payment or if there’s a billing error. To minimize the risk of a zombie account haunting you, ask for a letter from the bank stating you closed the account.
Even if you have no funds in the account, you still need to formally close it. You may be able to close an empty account online by following the instructions on the bank’s website.
Make sure you get all the money from your account
If you have funds in the account you’re closing, the bank will usually write you a check for the amount of the balance, or just transfer funds to your new account.
Your bank may require a formal written request (such as a notarized letter) to close an account with an open balance. You may also have to go to the bank in person to pick up the check. Give the money one to two business days to transfer. A wire transfer’s faster, but it costs more.
Make sure closing the account won’t affect your credit score!
If you owe money on the account you’re closing, you won’t be able to shut it down until you pay the balance and any fees.
The bank might close an account with a negative balance after a month or so, but don’t wait for this to happen — it will negatively impact your credit. You want a neat, clean closure.
When should you switch bank accounts?
You’re merging finances with a partner
In a committed relationship where you have decided to split expenses, a joint bank account can save you money and time (many people merge accounts after marriage or entering into a domestic partnership).
You might combine finances in a brand new account, or join your partner’s existing account if their bank has more of the services you need.
Read more: How to merge bank accounts after marriage
The fees are too high
With so many banks offering fee-free checking accounts and dropping fees from high-yield savings accounts, you don’t need to stick with a bank that piles on fees.
For example, if you keep getting hit with overdraft charges despite your best intentions, look for a bank with minimal (or zero!) overdraft fees (or one without minimum balance requirements). Similarly, if you use cash frequently, pick a bank with no ATM fees.
Read more: How to stop paying ATM fees
Another bank’s features work better for your needs
It’s normal for financial situations and priorities to change, and your banking needs might change with them.
Whether you want an account that connects to a budgeting app, offers a significantly higher interest rate over time, rewards you for better credit, works with poor credit, or lets you complete all your transactions online, there are plenty of options if your current account lacks features you need.
The bank isn’t FDIC-insured
Most banks and other financial institutions have insurance from the Federal Deposit Insurance Corporation (FDIC), which protects your money up to $250,000 in case the bank fails. (They’ll mention FDIC coverage somewhere on their website, or you can see which banks are covered here). A lack of FDIC coverage is a security red flag.
You’re relocating
If you’re moving and your current bank doesn’t have physical branches near your new location, it’s often more convenient to switch — either to a big-ticket bank with branches all over the world, a local community bank in your new area, or an online-only bank.
You don’t agree with your bank’s values
Social responsibility is a big deal to a lot of consumers, and if your bank supports a cause or makes a decision you don’t agree with, you may want to put your money where your values are.
I switched from a national to a local bank for this reason with no issues (it wasn’t even awkward when I told the teller at my former bank why I was switching).
Read more: What you should know about socially responsible banks
Pros and cons of switching bank accounts
Pros
Potential cost savings. Your new bank may offer a higher interest rate for a savings account, or lower fees than your old bank. After some time, you’ll start to see the savings add up.
Possible sign-up bonuses. You can take advantage of any one-time bonuses or financial rewards your new bank offers as a “thank you” to new customers.
A better fit for your needs. Maybe you finally made the switch to an all-online bank (no branch visits!) or a local bank near where you live (fewer out-of-network ATM fees!). In any case, a bank that fits your lifestyle and preferences is the best choice.
Cons
Transferring direct deposits and autopays. This part of changing bank accounts takes some time and energy, especially if you have lots of monthly bills on autopay.
Less familiarity. You know less about the new bank’s procedures, and they know less about you — like your credit history, for instance. This means the approval process might take longer if you want a loan or additional account at your new bank.
Finding fees in the fine print. Banks and credit unions should be upfront about any fees they charge. But when you open a new account or close an old one, you’re getting a lot of information at once. Info on fees could be easy to miss if you’re not looking out for it.
The bottom line
Closing your bank account and opening a new one can be a pain, but if you take the right steps and make sure you do everything correctly, it doesn’t have to be a huge hassle.
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