[X-post /r/personalfinance] Need advice choosing a bank/card

[missingthemark]

I have a few questions and I may help a few people with my findings.

I'm an American (Missouri resident), and I currently live in Italy. I'm moving with my family to Kansas City (Kansas) shortly after I turn 18 (within a few weeks).

I'm in a not-so-great situation with my family and I'm trying to move out as soon as I can. I don't have a bank account. Or insurance. I need to learn how to be an independent adult.

I plan on moving out-of-state and going to college after I'm on my own and I gain the slightest sense of financial stability. I'm taking small steps and I need some time to balance myself.

From what I've learned I'll only need two types of bank accounts:

• A checking account - for transactions.
• A savings account - to store money and collect interest.

I hear that checking accounts are what put people into debt (because of credit cards?), and I want to be as debt-free as possible. I'm told that I should open a checking account with no monthly fees, no minimum balance requirement, no limits on the number of transactions, and free atm access. That sounds like a lot to ask for.

I don't want a credit card. I'd like to have a debit card so I'm only spending my own money. I'll use this to open commissions as an artist and costume designer (adding money to the account), something I've been wanting to do for some years. I'll move the money that I earn into my savings account, when I get one.

As for savings accounts I only know to look for one with a higher interest rate, but that interest is almost worthless today.

I'm currently looking at five of the most common, widespread banks in the US:

• Chase
• Bank of America
• Citi
• Wells Fargo
• Capital One

From my own research:

• I can't get much info on Chase because it says all of my zip codes are invalid.
• Bank of America looks good, there's no fee for maintaining a checking account as long as I meet a few standards.
• Citibank also allows customers to avoid service fees, but I don't know what the terms are.
• Wells Fargo has unavoidable fees on checking accounts.
• Capital one has "fee-free" checking accounts with annual percentage yields. Is this interest to my advantage?

Which bank is the "best" for checking? Which is the "best" for saving? Why did you choose your bank? There are a lot of banks to choose from.

Also: will my bank give me a debit card, or will I have to get it from someone like Visa or MasterCard?

[EDIT] After doing some more research, I seem partial to Ally. There are no monthly maintenance fees and I can get reimbursed for using an out-of-network ATM. They also pay me interest, although that isn't worth much.

[EDIT 2] I've lost interest in Ally, they don't handle cash. At all.

 

[michaelsears]

@missingthemark Ally is great for your savings account
For checking, try some of the local banks where you end up or a local credit union.

In my experience, they are more likely to offer free checking, arm reimbursements, etc without having to hold a certain balance.

 

[rosecloud]

@missingthemark I agree with/bearninja about looking for a local credit union. The big banks all have very high fees and interest rates, so if you make any mistake it will cost you big bucks. Wells fargo is known for hostile business practices - and many of the big banks are not much better. Credit unions are a local alternative that typically have lower fees. Credit cards are a separate service than a checking and savings account. Debit cards are associated with bank accounts. Credit cards are a line of credit with extremely high interest rates and very high fees. Even so, if you did want a credit card, the credit union can set you up, and the interest rates are lower than the big banks.