Sometimes customers can reduce bank fees by keeping a minimum balance in their account, but without planning, having enough money for a minimum balance can be hard to do. Also, many banks restrict the kinds of accounts students under the age of 18 may open. If you're under 18, having your own bank account may mean opening a joint account with an adult who already has an account at that bank. Two of the main banking choices are commercial banks and credit unions. Commercial banks offer checking accounts, savings accounts, investment services and loans to people and businesses.
Credit unions are non-profit financial institutions that provide banking services for their members.
Some of the advantages of having accounts at credit unions are that they offer low fees for banking and low lending rates for their members. Because they are usually small, credit unions often provide personal service to their members. In addition, they often pay dividends on savings and checking accounts without requiring members to have a large amount deposited. It is also important to make sure that deposits are insured by the Federal Deposit Insurance Corp. But if you spend without a plan, then all your money can disappear before you even realize it.