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Lesson 3 of 11 10 min

Banking on Your Own

Opening your own accounts and choosing where to bank.

Written by Mateo LermaLast reviewed 4 sourcesEditorial standards

All lessons in Money After High School

Step 1: The lesson

How do you choose a bank and open your own accounts?

At 18, you can open accounts in your own name. If you've had a joint account with a parent, ask the bank how to move to your own.

  • Big banks: lots of branches and ATMs; fees vary and some savings rates are low.
  • Credit unions: member-owned nonprofits, often with lower fees and better loan rates.
  • Online banks: often higher savings rates and no monthly fees, but no branches.

Compare monthly fees and minimums, overdraft policies, ATM access, savings rates, and the mobile app. And make sure deposits are FDIC-insured (banks) or NCUA-insured (credit unions).

Skip the expensive shortcuts

Check-cashing stores and many prepaid cards charge fees on almost everything. A free checking account with direct deposit costs nothing.

Protect your account

Turn on two-factor authentication. Your bank will never ask you to read back a security code sent to your phone — anyone who does is a scammer.

Step 2: See it

Where to bank

Big banks offer many branches and ATMs, with fees that vary. Credit unions are member-owned and often cheaper. Online banks often pay more on savings and charge fewer fees, but have no branches.

StrengthsWatch for
Big bankBranches and ATMs everywhereMonthly fees, low savings rates
Credit unionLower fees, good loan ratesMembership requirements, fewer ATMs
Online bankHigher savings rates, few feesNo branches; cash deposits can be harder

Step 3: Real-world example

Sofia sets up her accounts

  • Checking at a local credit union with no monthly fee and access to a large free ATM network.
  • High-yield savings at an online bank for her emergency fund.
  • Direct deposit splits her paycheck: most to checking, $50 automatically to savings.
  • Alerts for low balances and large purchases, plus two-factor authentication.

Total monthly fees: $0. Time to set up: one afternoon.

Step 4: Try it

Does the savings rate matter?

Compare a low-rate savings account with a high-yield one over a few years.

Your numbers

Results

Account A interest (0.01% APY)

$0.10

Balance: $1,000.10

Account B interest (4% APY)

$40.00

Balance: $1,040.00

The difference after 1 year: $39.90 — for leaving the same money in a different account.

Educational calculator, not financial advice. Results are hypothetical estimates based on the numbers you enter.

Step 5: Knowledge check

Quiz: Banking on Your Own (3 questions)

Answer each question, then check your answer to see the explanation. Retake it as many times as you like.

Question 1 of 3

ScenarioSomeone calls saying they're from your bank and asks you to read them the code just texted to your phone.What should you do?

Choose an answer.

Step 6: Summary

Summary: Banking on Your Own

At 18, open accounts in your own name. Compare banks, credit unions, and online banks on fees, overdraft policies, ATMs, rates, and apps, and confirm deposits are insured. Avoid check-cashing fees, set up direct deposit and alerts, and never share security codes.

Step 7: What you should remember

Key takeaways: Banking on Your Own

  • Compare fees, overdraft rules, ATMs, rates, and apps.
  • Credit unions and online banks often cost less.
  • Direct deposit + automatic savings.
  • Banks never ask for your security codes.

Key terms in this lesson

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Sources and further reading

Rules, rates, and official figures in this lesson are based on these sources. People and numbers in examples are hypothetical.

  1. 1.
    Bank accounts and services (opens in a new tab)

    Consumer Financial Protection Bureau · consumerfinance.gov

  2. 2.
    Deposit Insurance (opens in a new tab)

    Federal Deposit Insurance Corporation · fdic.gov

  3. 3.
    Share Insurance Coverage (opens in a new tab)

    National Credit Union Administration · ncua.gov

  4. 4.
    Prepaid cards and other prepaid accounts (opens in a new tab)

    Consumer Financial Protection Bureau · consumerfinance.gov

Cite this lesson

Financial Literacy Club. (2026, September). Banking on your own. https://learnwithflc.org/courses/money-after-high-school/banking-on-your-own

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