Features Every 20-Something Needs In A Bank Account:
Managing money in your twenties is complicated and changeable. Look for these bank account features to lay a good foundation for your financial future.
Your 20 years are a time of rapid, constant, and tremendous change.
You adapt from childhood to adulthood, from school to work, and quickly take on new responsibilities such as renting or buying a house, starting a career, getting married, drinking, renting a car and having children on the timeline next to you to have.
All of this has huge financial implications — and of course, you’re probably learning how to handle money for the first time.
There is no solution for your money matters, but the right bank account can provide you with a good basis to work from.
Why does the banking system differ at age 20?
At the age of twenty, you can open your account for the first time. You’re probably managing money for the first time and making money like never before…and it’s directly related to spending you’ve never made before.
Banks generally do not offer accounts for twenty people who can handle this financially difficult time in life.
You need an account that understands volatile earnings and rapidly changing expenses, so you can build a foundation for your future finances, grow with you, and live where you live: on your phone.
Banks are usually located in your area – a problem for 20 people who commute to and from university or regularly commute to work. They also tend to reward customers with a lot of money, although you will probably need an account that will help you determine your budget and financial plan while earning more.
So this is not the best way to keep the bank account you had as a child or at a branch near you. Take it a step further to find the national bank or online bank you need, starting with the resources below.
One bank that contains almost all of these features is Chime. With a minimum deposit, no commission, a good phone, the ability to pay up to two days in advance, and much more, it is a bank designed for young people.
1.Low or no deposit required
Start your banking relationship the right way.
You may not have a lot of money to deposit into your new bank account, especially if this is your first time opening one.
Please check the minimum deposit before opening an account, preferably none. If so, look for an account that keeps you low, such as $10 or less. Most individual accounts, with the exception of most accounts with online banks and credit unions, keep these requirements low.
2. No monthly fees
You just need a place to store your money; you don’t want to pay a monthly fee for the privilege.
Many traditional banks even charge a monthly maintenance fee to get an account – it can cost $10 per month. This isn’t great, especially in the months when you skate with a balance of about $12.
Most internet banking has eliminated this monthly fee. They don’t have the overhead of a mortar bank, so they can cut costs and leverage the savings.
3. There are no minimum balance requirements
Many bank accounts advertise benefits such as no commissions, high-interest rates, or free ATMs, with an asterisk in front of them.
This asterisk usually indicates a minimum balance requirement, which can be large and complicated. (For example…what is the 30-day moving average of your daily balance…?)
Remember these requirements and find an account that doesn’t have them. This will help you avoid surprise fees, which are basically a double whammy on days when your risk balance is low.
4. No direct deposit required
As a balance requirement, some accounts must receive a minimum amount each month via direct deposit to avoid fees or use certain features.
It can be tricky if you’re a student, have an irregular income, or work for money or tips. Avoid it so you don’t have to worry about your income any more than you already do.
5. Robust and Easy Mobile App
I don’t understand how banks deal with mobile applications that use their design elements from an early 2000s MySpace profile.
When financial institutions left in 2002, tech companies happily filled the gap.
Online banking services make banking more intuitive with time tracking programs. If your local bank doesn’t already take advantage of this little thing called the Internet, check out your online banking options to get the bill you deserve.
Bonus: a feature you don’t have to worry about
Tired of praising the banks for something? APY high.
This is the “annual return” or interest your money earns when it’s in your checking or savings account.
Don’t get me wrong – free money is free money and the higher the APY in your account, the more money you receive from your bank.
But don’t be fooled by a high APY and sacrifice other features that are much more useful for your financial situation. If you tend to keep your balance low and have little or no savings, the commission doesn’t mean much, but it does offer free budget and ATM features.
There are also monthly fees or balance requirements for high-yield accounts, and I’ve explained how to avoid them.
Choosing a bank account in your twenties can be overwhelming. Some tips revolve around making smarter financial decisions when starting your independent financial life.
Try to cut down on the noise and focus on the simple things you need: a place to save your money that won’t cost you, or a place to punish if you don’t have much.
Choose a bank that can support you as your finances grow and you can cross the next more difficult financial bridge once you get there.