How to open your first bank account

I opened my first bank account when I started my first job at 16 years old. Having no idea what to do, I just followed my mom to her bank, and the bank teller created my account for me. Although she did open an account for students, as I was fresh out of high school (side note: high school ends at 16 years old in Canada, or 11^th grade), I didn’t know I could do some basic research to find the best options for my personal situation. Let me tell you what I wish someone would have told me about opening my first bank account!

This post contains affiliate links. If you make a purchase, I will receive a small commission, at no extra cost to you. For more information, please read the disclaimer.

Pin: How to open your first bank account

So, what should you do when you want to open your first bank account?

Obviously, this will change depending on your country. I will refer to the Canadian banking system, but I’m sure there are similarities.

Most teenagers have their parents open their first bank account. However, even if your parents have been with the same bank forever, it doesn’t mean they have the best solutions for you. On my first account, I was allowed 7 TRANSACTIONS A MONTH! Little did I know that other banks have much better options for students…

Here are the criteria you should be looking for:

Low monthly fees
No minimum balance
The number of transactions allowed per month
The interest rates (of the checking AND the savings accounts)
No fees for e-Transfers
Rewards
Availability of ATMs
Availability of online banking
Free credit score check (with NO effects on your credit score)
Proximity to your home (when I lived in a small farm town, the closest branch of my bank was at about 15 km, or 9 miles, from my home)

Best bank accounts for students in Canada

Start by Googling something like “Best bank accounts for students”. When I searched this request and added “in Canada”, RateHub suggested the following:

Scotia Bank
CIBC
Bank of Montreal (BMO)
TD Bank
Royal Bank of Canada (RBC) (I had an awful experience with them but that doesn’t mean it will happen to you).

Online banks

Tangerine

In Canada, I would also recommend looking up Tangerine. This bank is relatively newer than most banks but they offer such good terms:

No fees for online daily banking
Free Tangerine email money transfers
Free Interact e-Transfers
First cheque book: free

I opened my Tangerine account earlier this year to help me manage my bills and my savings but I’m seriously considering changing my bank to them for all these perks. Plus, they offer an interest rate of 0.10% on your savings account, which is much more than most regular banks.

Learn more about Tangerine here.

Scotia Bank – students

For students, I truly believe that Scotia Bank is a great option.

All their accounts include (taken from their website):

Unlimited transactions
Free e-Transfers
Online banking
Mobile banking

They have a credit card that allows you to earn SCENE® points and redeem them at the movie theater. Learn more below!

Bank of Montreal (BMO)

My ex and I went with BMO, and when we were students, we didn’t have any monthly fees (it changed when I graduated and when he finished his trade school diploma).

Here’s what BMO offers:

No monthly fees while in school and one year after graduation
Mobile banking
One savings account – no additional fees

As you can see, Tangerine and Scotia Bank are more interesting than most banks when it comes to students!

Best bank accounts for students in the US

I did the same research for US banks, here are the results from Investopedia:

Chase Bank
Union Bank & Trust
USAA
Alliant Credit Union
Citizen’s Bank
Bank of America
First National Bank and Trust

I can’t confirm if any of them are good or better than others as I have never lived in the USA! However, as they were recommended first, I would look into them.

Again, make sure to watch out for the monthly fees and e-Transfer fees.

Book an appointment

Now that you have decided on the best bank account for you, for most banks, you can do it online. You can definitely make an appointment with an actual person if you prefer!

You will need a checking account for your transactions but take the time to open a savings account with the highest interest rate possible (some banks go up to 0.10% interest).

Cheque specimen

Once your account is all set up, make sure to give a cheque specimen to your employer to make sure your pay is deposited in that account.

Wait, what is a cheque specimen?

You don’t need to order actual cheques for this. Most banks give you 4 cheque specimens when you open your account, or you can print them from your online portal.

Basically, your employer will need this information:

Transit number
Institution or branch number
Account number

Make sure to write Specimen or Void on your cheque specimen

I cannot emphasize this enough: You shouldn’t sign the cheque or write any amount on it. It should be written “Specimen” or “Void” on it so that no one can use it with malicious intent.

Now that you’ve learned how to open your first bank account, head over to my posts Build a healthy relationship with your credit card and Be the hero of your credit with Borrowell. Make sure to follow me on Facebook, Instagram, and Pinterest. You can also join my Facebook group to engage with like-minded people trying to figure out adult stuff!