conversation: User (shitpostlord4321): "I got my first paycheck ever last week, at my first job. I’m going to make a bank account soon, but what is there to know before making one? I’m going to be honest, I don’t know anything about financing. Should I get a card? Should it be credit or debit? Or should I just bring the checks and get cash? Which bank should I go for? Chase, Wells Fargo, Bank Of America etc. There’s so many questions.\n\nEdit- I meant to be put before doing so in the title but I messed up.\n\nEdit 2- I really appreciate how many responses and discussions I got in this post! It helps me understand some stuff a lot better."
  Self: "Good for you for learning about it before doing it. \n\n1) Don't use one of the big "money center" banks like Bank of America, Wells Fargo, Chase, Citibank, even if they are physically convenient. They have horrible terms of service, fees, policies that let them charge you fees you didn't expect, and pay no or absolutely crapola interest. Even if at some point you want one of their rewards credit cards, you don't have to bank with them to have a credit card with them. \n\n2) Don't use your parents' bank. Don't put your parents on your account. Don't put your siblings on your account. Don't put anybody you aren't already married to on your account. See, every near-daily horror story here, and on /r/legaladvice, about that. Yes, your parents and significant other may be wonderful. Still don't do it.\n\n3) If you don't need to deposit literal cash bills and coins (everybody should be getting paid by direct deposit these days), then consider using an online-only or online-primary bank that pays better interest, refunds ATM fees, and has good customer service. \n\nAlly Bank (formerly GMAC General Motors Acceptance Corporation, GM's car dealer finance company) is highly recommended here. \n\nDiscover Bank also is, despite being owned by a major credit card firm. Discover's fairly good as credit card companies go, even though it's not a terribly well-accepted credit card (and barely at all outside the USA.) OK for an online bank. \n\nLikewise, people here seem to like Marcus Bank owned by "evil Bankster" aka "vampire squid" Goldman Sachs, but both for ethical reasons and because I think they don't yet have full-service checking, please don't use them despite the many recommendations.\n\n4) Consider using a credit union instead of an actual bank. Insured just as well as banks, with the full backing of the government just like banks. Typically lower fees, higher interest, better customer service. With free bill payments, free online transfers, smartphone apps and websites with online deposit, and usually a large network of no-fee ATMs, including at many convenience stores. \n\nAlso, for almost all credit unions (not quite 100% of them), every other credit union in the country is your "local branch" even if it's not your own credit union - you can do teller deposits, withdrawals, other transactions. Likewise, other credit unions' ATMs are your own free ATMs. There is likely one or more credit unions near you that you can join because you are in their "field of membership" based on where you live, work, go to school, worship. And dozens of credit unions nationwide which anyone can join, by a simple and cheap/free membership in a nonprofit done at the same time as joining the credit union. Good list of them at https://www.depositaccounts.com/credit-unions/anyone-can-join/.\n\nWhen you join a credit union, you become an owner of it. You get a vote for its board of directors, and you get some of the benefits of whatever revenue they make, in higher savings/CD interest, lower fees, and when it comes time to get a credit card, car loan, mortgage, likely lower loan/card rates and better terms.\n\n5) Consider using an online/real-world discount brokerage firm's checking instead of a bank (or credit union). They can be your only bank - or at least your primary bank.\n\nThe two to consider, really the only two in terms of the fullest service and best deals, are Charles Schwab and Fidelity Investments. \n\nCharles Schwab the brokerage also owns Charles Schwab Bank, which many here (including me) recommend for their Investor Checking Schwab Bank account. You have to open it together with a Schwab Brokerage Schwab One taxable individual (or joint) brokerage account, but doing so together gives you a zero-balance minimum required balance on both accounts. Excellent app, free online transfers and billpays nearly always overnight, app check deposits, all ATM surcharges refunded (at month end), pays OK interest (better than the big banks, not as good as the top online banks.)\n\nOr Fidelity Investments Cash Management Account checking - not really a bank, though the deposits are put into FDIC-ínsured banks on your behalf behind the scenes. Same benefits as Schwab Bank, with the added benefit that the ATM fee refunds are next day, rather than waiting to the end of the month. This technically is itself a brokerage account, so you could also invest in index funds, brokered insured CDs, treasury bills, etc. for some savings. \n\nAt both firms, you also could open up your Roth IRA and/or regular IRA right there, and manage it all with just one web and app login, just one monthly statement, just one consolidated year-end tax statement. \n\nBottom line: Just don't blindly walk into your family bank or local bank or Big City Big Name Bank. Better options are just as convenient and will earn you more money while costing you less money. "
  legaltinder (legaltinder): "As counter point to the credit union suggestion, be careful of their online infosec. It can seriously lag state of the art security recommendations at smaller CUs. (I’ve been a local USA CU customer for years)"
  Self: "As opposed to banks, which have never been hacked or had stupid security policies? /s \n\nThis honestly sounds like you're just parroting typical banking industry FUD against credit unions. Yeah, there are some crappy small credit unions. Have you seen how crappy the sites and processes are at some small banks?\n\nAnd for that matter, the breaches at some major banks? JPMorgan Chase's Chase Bank a few years ago is a good example. Citigroup the year before that. TD Bank, BMO, others. Plus the many breaches at payment processors? There's nothing particularly more risky about credit union infosec compared to big banks, in terms of the record of breaches.\n\nMy three credit unions have good infosec, 2FA, proper challenges on calls, negative consent letters or other appropriate notifications on significant changes, and non-stupid password policies. \n\nI've seen online and real-world banks' online sites with far worse. And some brokerages, though not (at this point anymore) Fidelity and Schwab."
  legaltinder (legaltinder): "I'm not parroting FUD. My CU has terrible infosec, so we are working on moving."
  Self: "So move your money, now. It's not hard. \n\nThere are plenty of good credit unions with modern secure processing. Penfed, NFCU, Alliant, USAlliance, NASA, UNFCU and many more that anyone can join easily, online, right now. Other good ones like BECU, Campus USA, etc. that you may be able to join depending on where you live, work, worship, attend school, or are already related to a member.\n\nIf you want to help others, why not identify your current crappy credit union rather than do a smear job against the whole sector? "
  legaltinder (legaltinder): "Suggesting that new clients check an institution's infosec practices before becoming a client is not a smear."
  Self: "Of course not. Though not really possible in any meaningful way for a layperson to do beyond the superficial. \n\nNor even for a professional in infosec, which perhaps I might have been for part of my career, to do from outside of the institution without auditing legal powers and access. So your reasonable-sounding "Suggesting that new clients check an institution's infosec practices before becoming a client is not a smear" is really just more deflecting from your irresponsible broad-brush unsubstantiated smear of the whole credit union industry.\n\nSingling out just one sector of the four possible provider sectors* for a "bank account", just because you chose an institution that sucks at infosec, certainly is a smear. \n\nYet you continue to deflect and refuse to name your credit union that you claim has bad infosec. Naming it would actually help the OP and others to know what one credit union to avoid in your opinion. Instead you continue to imply that credit unions as a class are less secure. When called out on your FUD, now you pivot to a content-free "check their infosec" as if that were even for a prospective customer to do. \n\nYou don't even mention what type of information security weakness(es) nor platform(s). The mainframe real bank system back end? The middleware? The web server and supporting application servers that aren't when the real banking system? The online banking package they lease or the outsourcer service bureau that really hosts it? Their password policy? 2FA or lack thereof or crap implementation of it? Documentation requirements and secure vs non secure doc submission procedures and systems?\n\nJust what the hell is it you say is insecure? How do you know? **Which credit union is it?**\n\nThe commercial banking lobby would be proud of your work here. (Perhaps they are?)\n\n* *Traditional banks, online only banks, brokerage checking-alternative banking, credit unions.*"
  