A bank is a place to put your money and keep it safe in an account.
Banks offer many services, including:
A credit union is another place for your money. To use a credit union, you have to be part of a group that is allowed to join that credit union. Many groups, including communities and places of worship, have credit unions their members can join.
Credit unions offer the same services as a bank.
When people talk about bank accounts, they usually mean checking accounts. A checking account lets you keep your money safe and still be able to spend it.
A checking account lets you pay for things without using cash. Instead, you might pay with a check or a debit card.
Banks and credit unions also offer savings accounts. A savings account is for money you want to save.
A savings account can help keep the money you are saving separate from the money you need to spend now.Read more
You might open a checking account:
Many banks and credit unions charge less for these services if you have an account there.
You might open a savings account:
Before you open any account:
Putting money into your account is called a “deposit.” You can deposit checks or cash into your account if you:
You also can transfer money from another account. For example, you can move money from your savings account to your checking account.
Taking money out of your account is called a “withdrawal.” You can take your money out if you:
Banks and credit unions might charge fees for different services. Ask your bank or credit union if you can avoid paying fees. Sometimes, banks and credit unions charge fees if you:
Sometimes you can avoid paying fees by having your paycheck deposited directly to your account. “Direct deposit” means your employer pays your salary directly into your bank or credit union account. You do not get a paper check to cash. Ask your employer if it offers direct deposit.Read more
Banks and credit unions are safe places to keep your money. Banks also offer services like loans and check cashing. If you have an account, these services might be less expensive than at other places.
Compare the services and fees at a few banks and credit unions. Go to the website or visit in person. Find out what the fee is if you:
Compare the answers. Find the bank or credit union that meets your needs.
Write down the money you spend or take out of the bank. Then subtract what you spend or withdraw from the balance, or the amount of money in your account. That will show how much money you have left to spend.Read more