Opening a Bank Account
A checking account allows you to use paper checks or check cards to take money from your account. You may use checks or check cards to pay your bills through the mail, or to send money to friends or family members. Most stores will accept check cards (but not paper checks).
Checking accounts are free at many financial institutions in Houston. Most credit unions and savings-and-loans also have free checking. Some banks may charge you $5-$10 per month, unless you have the paychecks from your job directly deposited into your account. Each bank or savings institution has a different set of fees, so you should ask detailed questions to understand how much you will be charged.
Why do I need a checking account?
It is safer to keep your money in a checking account, instead of keeping a large amount of cash in your wallet or in your house.
If you want to pay your bills through the mail, it is much safer to send a check, instead of sending cash in the mail. (Note: Sending cash in the mail is always a bad idea. If you are going to mail a payment, always pay with a check or a credit card. If you don’t have a bank account or credit card, pay the bill in person and make sure you get a receipt from the person who accepts your money.)
If you have a checking account, it is easier to cash checks that other people have written to you. Simply take the check to the institution where you have your checking account, and you can cash it or deposit it into your account. There is no charge for cashing other people’s checks, if you have a checking account.
The money in most banks and savings institutions is insured by the U.S. government. Even if the bank gets robbed or goes out of business, you can still obtain your money. Be sure the bank you choose is insured by the Federal Deposit Insurance Corporation (FDIC). All the major banks in Houston are insured by the FDIC. If you see a newspaper or Internet advertisement for a bank outside of Houston, it may not be insured. Your safest choice is to open an account with a bank with offices here in Houston.
Where can I open a checking account?
In the United States there are many types of financial institutions that offer checking accounts. Banks, credit unions, and savings-and-loans are the most common places people in Houston have their checking accounts.
Banks and savings-and-loans are located in many locations throughout Houston. Some can be found in supermarkets, such as Kroger or Randall’s. You will want to choose a bank or savings-and-loan in a location that is easy for you to get to.
Credit unions are employee-owned banking institutions. Usually only employees of the company or people in certain professions can bank at a particular credit union. If the company where you work has a credit union, this may be the best place to do your banking. The fees and loan rates at credit unions are often much better than the prices at banks or savings-and-loans.
How do I open a checking account?
The best way to open an account is to go in person to the office of the bank, savings-and-loan, or credit union. Bring the following items with you:
- Social security card
- Drivers license or Texas ID card
- Your address and phone number
- Name, address, and phone number of your employer, or your spouse’s employer
- Cash or a check for the initial amount of money you wish to deposit. Usually you must deposit at least $100 in order to open an account.
At the banking office you will need to fill out some forms, and the banker will make a photocopy of your social security card and drivers license (or Texas ID). The banker will then give you some temporary checks to use until your real checks arrive. The real checks will either be mailed to you, or you can pick them up at the bank. Tell the banker how you would like to receive your checks.
How do I know how much money is in my account?
The bank will send you a statement each month, listing all the checks you have written, along with the money you have deposited to your account during the month. If you have Internet access, you can also check online to see how much you have. You can also call the bank anytime and they will tell you how much money is in your account.