However, if you are looking for the monetary journey in the financial world, then you should forget about those tall glass towers of banks and their stuffy atmosphere. The credit union could be a great alternative to the first bank account, because it is a financial association owned by its members and existing only for the sake of the members’ needs.
To begin with, it is quite obvious that one of the things that are extremely important when you open your first bank account is the fee structure. Banks tend to take as much money as possible from you in various fees, including the monthly maintenance fee. A credit union does not impose any monthly maintenance fee – which is already a big deal. Moreover, the interest rates in credit unions on savings accounts are often way higher than those provided by banks.
However, joining the credit union could be quite a challenging task, but there is nothing to be worried about. First of all, you will need to find an appropriate credit union where you would like to open your account. There are many unions which have strict requirements of membership based on certain jobs and areas where you live. But there are also plenty of unions that have no such strict criteria.
The next step is doing some paperwork. In order to become a member, you have to prove it with a government-issued ID, social security card and proof of residency (a bank statement or a letter sent to your address). Moreover, if you are under eighteen years old, you will need your parents to join the credit union as well, as it is typical for minors.
And finally, the most significant step to become a member of the credit union is to make the share deposit. As you can understand, it is simply a certain sum of money you deposit into the credit union. But the sum of money you deposit is yours forever (or until you close the account). The minimum sum to open the account is five or twenty-five dollars.
In general, I believe that this step makes you ahead of the majority of your peers. You start managing your bank account without any kind of unfair treatment and build a relationship with your lender, who might give you favorable terms of the loan for your future purchase.