How to Shop for a Financial Institution: A Guide for Teenagers

Just like different stores at the mall, banks and credit unions offer products and services at different rates. It can pay to shop around! See for yourself: Stop in—or call—at least two financial institutions and compare answers to these questions:

Convenience of locations and ATMS

1. How easy is it to visit the branch when I need to?
2. Do you have evening or Saturday hours? Are you open when I can get there?
3. Where are ATMs available? Is there an annual charge for an ATM card or fees for using it? How many surcharge-free ATMs are in your network?
4. Do you offer online banking? Are there any charges or restrictions?

Account opening and information access

1. What kind of identification is required to open an account?
2. Can I access my account information online?
3. Can I access my account information by phone?
4. Are there any fees or limits for account access?
5. Is a parent or guardian signature required?

Savings accounts

1. What is the minimum amount to open an account?
2. What happens if my balance drops below the minimum?
3. Is there a charge for withdrawals or transfers?
4. What is the current interest rate? Is there a minimum balance to earn interest?

Checking accounts

1. What is the charge for a box of checks? Are “designer checks” more expensive? (Remember to ask how many are in a box.)
2. What is the minimum amount to open an account? What happens if my balance drops below the minimum?
3. What happens if my account is overdrawn? Do you have overdraft protection and what are my options?
4. What fees are charged for overdrafts? What happens to my NSF (non sufficient funds) checks?
5. How much money do I have to have in my account to earn interest and what is the interest rate?
6. Is there a monthly service fee? Fees for number of checks written per month?
7. Do you keep my cancelled checks for free? Or, return them to me for a fee?
8. Can I get a debit card and what are the fees?
9. Can I get personal money orders and what are the fees?

Credit card

1. What are the age and credit history requirements to receive a credit card?
2. Does a parent or guardian need to give permission or be a co-signer on the card?
3. What would my credit limit be?
4. What interest rate (APR) would I be charged?
5. What types of credit card fees are charged? (i.e. cash advance, over limit, late charge)

Loans

1. What types of loans do you offer to someone my age?
2. Do my parents or guardian need to give permission or be a co-signer on the loan?
3. Is the interest rate I will pay based on my individual credit score or is it one rate or everyone?
4. Do you have flexible term limits?
5. What are your requirements for co-signers?
6. Do I have to do all of my business with you in order to receive the best rate?

Online bill pay

1. Do you offer online bill pay? What is the fee?
2. What are the minimum account requirements to be eligible?

Personal preferences 

1. Does the staff treat me with courtesy and respect?
2. Does the staff provide me with helpful information or do they try to sell me products and services I don’t want or need?
3. Do they have specific products and services for people my age?
4. Do I like doing business with them?

Philosophy and community involvement

1. How do you support the communities where you operate?
2. How are profits spent? Who determines this?

Make sure you include at least one credit union in your search.  Credit unions are not-for-profit financial institutions and therefore generally offer better rates and fees than for-profit financial providers.  You may have access to a credit union through an affilation your parents have established.  My Credit Union, Destinations CU, is located in Parkville and can serve most residents of this readership area through our community association affiliations.