Choosing a Bank

[Bam]

So it's summer, I have a job, and I'll soon be getting another one. However, I just never seem to have enough money for everything I want to do. No matter how hard I try, be it by sticking my cash in the freezer, giving it to my parents so they can hold it, or just stuffing it in a dark hole, writing an email that will be sent in the future stating where it was hidden, and then trying to forget about it, I always manage to spend it. I know it's a really bad habit, and although it doesn't really make a difference for me right now, if I continue in that direction in the future (I'll be turning 17 in a couple months), I can screw up my life pretty bad.

So, on to the next part. I've decided to set up a bank account that I'll be putting a good portion of my money into every week (probably 50% or so), so that I can save up for a computer/car/etc. I don't really know where to start, though...

I have the basics down, like the difference between fixed and compound interest and stuff like that. I don't really know what to look for, though, or what I really even want. Any advice would be appreciated!

 

[timw06]

In which country do you live?

Its really hard to give advice if we don't know that!

 

[Bam]

Oh, sorry. I live in the USA, I didn't know that would make a difference.

 

[FiveKRunner]

Interest from a bank account really isn't going to do you much good, especially if you want to save that money. What I'd say you want to do is set up a CD (Certificate of Deposit) or buy a Saving's Bond. They basically work the same way. You submit a given amount of money and it sits with the bank or government for a certain amount of time and collect interest.

The thing about CDs and Bonds is that they usually have pretty decent interest rates compared to bank accounts and cashing them out early is discourage since you won't get the maximum interest from your savings. They can be for almost any amount of money and CDs can be taken out from anywhere to just 3 months to a few years. You might want to go to your local credit union or their website to check out interest rates and minimum amounts.

 

[CaptKirby]

Yeah, CDs are not great, but they are the easiest 'good' option! So you can find which bank has the best rates, since it will vary.

If you want to keep a checking account with a low amount of money and shift money into it if you end up needing it, Washington Mutual allows a checking account with no minimum balance.

 

[hbdragon88]

Wachovia recently rolled out their new way2save program, in which you can deposit $100 a month and they'll give you 8% or something, 16% during the summer months. It ends after a year and they'll go back down to 2%. It's really good for a savings account.

CDs are generally crap if you don't have a lot of money. Most banks require $10,000 min. for good rates, $5,000 the next one. But I am sure that even a short $100 min. CD yields a better rate than my old World Savings/Wachovia savings account, which was giving me 0.15%. And thanks to the Fed the rates suck even more.

 

[God.]

im with bank of america and i really like it there. dunno about cd's and savings account interests or anything, because those things are pretty shitty, but when i opened my account bank of america had a deal for students where you could open up savings and checking accounts with no minimum balances and no account fees for a year. plus the keep the change feature is nice. customer service tends to be really good. THUMBS UP.

 

[hbdragon88]

bank of america had a deal for students where you could open up savings and checking accounts with no minimum balances and no account fees for a year. plus the keep the change feature is nice. customer service tends to be really good. THUMBS UP.

That's not really a deal, almost every bank has a form of free checking, and I don't think any bank would charge for a savings account, at least the most bottom accounts shouldn't have fees. It's a competitive business and fees would drive away customers and money. Well, I know that Wachovia's student checking has a $50 min. balance, which is somewhat of a hurdle.

I actually don't even like Wachovia that much (they took over two of my banks, Western Financial and then World Savings), and I hate to sound like I'm pimping it, but they advertise themselves as being the #1 bank in customer satisfaction. I don't play around with debit or ATM cards so I can't comment well on Keep the Change or other various programs.

 

[PyroDudeX]

I'd say Randolph Brooks Federal Credit Union. But idk if it is in any other state besides Texas. I started an account there for this summer and I would it was a great idea.

 

[Bam]

Thanks for all the input. So far I'm looking at WaMu and Wachovia, just because they're not too far away from my house and the student programs don't look all that bad. I want to keep away from getting any credit/debit cards right now, as I would probably spend that faster than I would real cash.

I don't think $50 or even $100 a month would be that big of a deal for me, as I'm already making more than that easily by just working one day a week, four times a month. I've never really needed more than just "pocket-cash" until now. Things involving money change so fast once you start driving, I had no idea..

 

[Thegreenguy]

I'd go with a bank that is most beneficial for your current financial status. Seeing your still young and in high school, I would go with a bank that has some extra incentives for students that don't make very much money. You could open a credit card soon and start building your credit up early.