Opening Your First Account: Step-by-Step Tips for Young Adults

Why You Should Open a Bank Account

A bank account is a financial tool to help you store, protect and manage your money. It makes everyday tasks like paying bills, receiving income and saving goals simpler and more transparent.

Two of the most common banking accounts members open first are checking accounts and savings accounts. Checking accounts give you immediate access to your funds, while savings accounts encourage setting aside money for emergencies or future financial goals.

Whether you’re stepping into your first summer job, moving into your own apartment or adjusting to campus life, having a checking and savings account keeps your finances orderly and easy to oversee at every turn.

Checking Account

A checking account is an account that allows you to access your money for frequent transactions. For example, it allows you to receive paychecks through direct deposit, pay rent and utilities automatically and make purchases with a debit card. Many banks offer student or entry-level checking accounts that waive monthly maintenance fees when you meet reasonable requirements such as maintaining a modest minimum balance or setting up regular pay deposits. While these accounts typically earn little to no interest, they compensate with the flexibility to withdraw or spend funds at any time, whether you’re buying groceries, fueling up your car or shopping online.

Some banks or credit unions even offer promotions to members who are new to banking. For example, California Credit Union offers a $250 bonus when you open an eChecking account¹. That’s cash in your pocket for simply taking your first steps toward financial empowerment.

Savings Account

A savings account is designed for holding money you don’t intend to spend immediately. Whether your goal is building an emergency fund or saving for a major purchase like a car or a down payment on a home, a savings account rewards patience with higher interest rates. Although some savings accounts may charge a fee if your balance falls below a specific threshold, you can usually avoid these charges by maintaining that minimum.

What You Need to Open a Bank Account

Opening your first account is simple once you have the right documents. In most cases, a government-issued photo ID is all you need. However, if we’re unable to verify your identity through our identity inquiry tool, we may ask for additional documentation:

• A government-issued photo ID. Acceptable forms of ID include a driver’s license, state ID card, military ID, permanent resident card or passport
• A proof of a social security number. This could include your social security card, a recent paystub or W-2 form
• A proof of address. This could include a copy of your lease or a pay stub

Once your documentation and completed application are reviewed and approved, your account will be active. You’ll receive details about how to access online banking, order checks if needed and enroll in mobile services. With your account open, you’ll be ready to access all the features that come with being a member.

How to Use Your Accounts

If you open a checking account, you'll receive a debit card that can be used anywhere that accepts card payments.  

This card also allows you to withdraw money from your financial institution’s ATMs. If they're also part of a larger network of ATMs, like California Credit Union’s participation with CO-OP and Allpoint ATM networks, you will be able to withdraw and deposit cash or checks, and check your account’s balance at thousands of ATMs across the US without incurring fees. 

You'll also receive login credentials to access your account via mobile banking. This allows you to manage your banking needs without the need to visit a local branch or ATM. This includes activities like viewing your account balance, mobile deposit, moving money between accounts and transferring money to others all from the convenience of your phone.  

What Is Direct Deposit? 

Direct deposit allows you to bypass paper paychecks entirely by authorizing your employer or benefit provider to transmit funds electronically into your checking account. To set this up, request a direct deposit authorization form from your payroll or human resources department provide them with your bank’s nine-digit routing number, along with your new account number. Once processed, your paycheck will land in your account on payday without having to deposit a check at the bank. This seamless process not only saves you time but also often qualifies you for fee waivers and other perks that banks extend to customers who rely on direct deposit. 

What to Use Your PIN For 

Your personal identification number, or PIN, is a four- to six-digit code tied to your debit card that verifies your identity for ATM withdrawals, deposits and point-of-sale transactions that require using your PIN. When you first receive your card, follow the bank’s activation instructions, which typically involve calling an automated line or completing the process online. You’ll be prompted to choose a PIN. If you ever forget your PIN, you may need to request it by contacting your bank, or if offered, reset it securely via your bank’s mobile app or at an ATM after identity verification.

Zelle

Your mobile banking app will allow you the ability to transfer money between your accounts and transfer money to others. One of the easiest ways to manage and move your money at California Credit Union is through Zelle, a payment service built directly into California Credit Union’s online and mobile banking app. Whether you're sending a paying your share of dinner or requesting half the rent from your roommate, Zelle lets you move funds quickly.  

You don’t need to download anything extra. As a California Credit Union member, Zelle is already available to you right within your existing banking tools. Just log into your account through a browser or the mobile app, navigate to the Zelle® section, and begin sending, requesting or receiving money.

Wrapping Up:

Opening and using your first bank account does not have to be intimidating. By educating yourself about the types of accounts and understanding tools like direct deposit, PIN protection and mobile deposits, you’ll transform banking from a chore into an everyday routine. Your accounts will become your foundation for responsible money management, supporting everything from everyday purchases to long-term financial goals. 
 
California Credit Union is a great option for young adults who are new to banking. Opening your first account at California Credit Union lays a solid foundation for your first account, and new members receive a $250 bonus¹ after opening an eChecking account online. 

¹ Restrictions apply. $250 offer applies to NEW eChecking accounts for NEW members only. Minimum $25 required to open account. Requires enrollment in Digital Banking within 120 days of account opening. Must establish a recurring Direct Deposit with a minimum of $400 per month. Recurring Direct Deposit must be a Direct Deposit or Payroll Deposit. Direct Deposit must be established within 120 days of membership opening to qualify for bonus. Three (3) months of recurring Direct Deposits must be credited to the account before qualifying for the bonus. Requires enrollment in eStatements within 120 days of account opening. Account will default to Personal Checking without notice if eStatement enrollment is not completed. The bonus will be added to the checking account the first week of the following month from the qualifying date and will be reported as income. Qualifying date includes the date you enrolled in Digital Banking, the date Direct Deposit was established to the account and received (3) months of recurring direct deposits and date you enrolled in eStatements. The bonus will be forfeited by the member if the account does not remain open for a minimum of 6 months. Limit one (1) bonus per member. The eChecking account does not accrue dividends. Account and membership are subject to approval. Programs and offers (including but not limited to fees, rates, and features) are subject to change without notice. Standard data & message rates may apply.