OPENING A BANK ACCOUNT

Need help sifting through the bank-speak and special offers? Here’s what we learned from our interview with Money magazine’s Sarah Rose:

• Start with your local bank or with your family’s bank to see what deals they offer. When choosing a checking account, look for:
• Free checking and free checks; beware of limits on the number of checks you can write each month without a fee
• Low minimum balance requirement so you don’t get charged a fee every month if your balance goes below less than a certain amount
• High number of ATM’s (Automated Teller Machines) in your area so you don’t have to pay a surcharge (sometimes as much as $2.00) for using another bank’s ATM
• Reasonable fees on returned (bounced) checks and other transactions

 It’s a good idea to up a savings account while you’re at it. Here’s the lowdown on what’s out there for you:

• Basic savings, or statement savings, do require a minimum balance in the account to avoid a service charge. A typical minimum balance requirement is $500.
• Most savings accounts can be linked to your checking account, so they act as "reserve" money in case you get overdrawn on your checking.
• Interest rates that earn you 2% to 3% annually on your account.
• To sock away money for a year or more, consider a Certificate of Deposit, or CD, which earns you 5% to 6% interest. The catch is that you can’t take your money out earlier than the CD’s term, which is usually at least a year.