Module 3 of 11 10 min
Banking on Your Own
Opening your own accounts and choosing where to bank.
Course lessons
Step 1
The lesson
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).
Step 2
See it
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.
| Strengths | Watch for | |
|---|---|---|
| Big bank | Branches and ATMs everywhere | Monthly fees, low savings rates |
| Credit union | Lower fees, good loan rates | Membership requirements, fewer ATMs |
| Online bank | Higher savings rates, few fees | No 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
Answer each question, then check your answer to see the explanation. Retake it as many times as you like.
Question 1 of 3
Step 6
Summary
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
- 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.
Finished the lesson?
Mark it complete to track your progress.