Sep 23, 2021
Opening Your First Account
It’s one of the first steps you’ll take when entering the world of finances. If your hard-earned money has outgrown the shoebox and jar under your bed, then it may be time to secure a safer place for it. While opening an account at a bank or credit union may seem complicated, the process is actually quite simple. But before you get started, read on to learn more about the different accounts available for someone just getting started on their financial journey.
Why should I have an account with a bank or credit union?
There are several benefits to having an account at financial institutions like Hughes Federal Credit Union. Credit unions, as well as banks, are federally insured. Credit Unions are insured by the National Credit Union Administration (NCUA) which means if you have an account at a credit union, your deposits are insured up to $250,000.
Depending on the account, you’re also given access to convenient tools like a debit card or mobile banking to help you make purchases and help you manage your money. Debit cards are a much safer option when compared to prepaid cards, too. If you happen to lose your wallet and you use a prepaid card, chances are you’ll have to take the loss because there aren’t any protections in place for prepaid cards. When it comes to debit cards, consumers are protected when they make electronic transfers under the federal law known as the Electronic Fund Transfer Act. Immediately reporting your card lost or stolen can limit your liability.
Opening an account means you’re building a financial relationship with your bank or credit union and that comes with benefits such as fewer fees and charges for transactions like cashing checks or making transfers. You can also set up direct deposits from your employer, helping you skip the visit to a branch location. Establishing a financial relationship with your credit union or bank also paves the way for access to other financial services and products that you’ll need throughout life’s journey, like credit cards and auto loans.
What type of accounts are offered?
Credit unions like Hughes offer a variety of accounts to help with your financial goals. You’ll want to consider how you’d like to use and access your money, before deciding on which account is right for you.
Checking account
A checking account is a deposit account that allows you to withdraw funds and make payments using a debit card or check. Some checking accounts like Hughes’ Checking PLUS account, come with additional benefits like cashback rewards, discounts, and more. Checking PLUS even comes equipped with an identity theft restoration service known as Restoration Rescue® to give you peace of mind in case identity theft happens to you.
Savings accounts
A savings account is an account used for, you guessed it, saving. You can use a savings account to help you save for big purchases like a car or a vacation or build an emergency fund. Unlike, checking accounts, you can’t use a savings account to make purchases but you can transfer funds to your checking account.
Money Market Accounts
Money market accounts are primarily used for saving purposes but they do allow account holders to spend directly from the account via a limited amount of transactions. Money market accounts typically require a larger initial deposit to open and could range from $1,000 to $150,000.
Certificate Accounts
A certificate account or certificate of deposit (CD) is a savings option that “locks” in your money for a certain amount of time (known as a “term”) in exchange for higher interest rates than a regular savings account. Keep in mind that certificate accounts come with penalty fees if you happen to access the funds before the end of the certificate’s term.
If you’re under 18, you’ll most likely need to start with a joint or custodial account tied to your parent or legal guardian.
What do I need to open an account?
Getting started is easy. Here’s what you’ll need to open an account at Hughes.
First, you’ll need to become a member. Unlike banks, credit unions are not-for-profit and member-owned financial cooperatives which means that any profits made by the credit union are returned to its members through better interest rates and fewer fees. When you join a credit union you become an owner, not a customer.
Membership is open to anyone that lives, works, worships, or attends school in Tucson, or through other affiliations you may have. You'll need:
- Your Social Security Number
- A valid form of identification (U.S. Driver’s License/ID or U.S. Passport with Signature)
- Information for funding your new account (existing Hughes account number, account number, and routing number from another financial institution, or a credit/debit card)
- Your previous address (if at current address less than two years)
- If applying for a joint membership/account, the secondary applicant's information
What should I do once I’ve opened my account?
- Notify your employer and set up to have your paycheck direct deposited to your new Hughes account.
- Take advantage of the convenient payment options like online bill pay and set up automatic payments to utility companies, car loans, insurance, etc.
Ready to get started on your financial path with Hughes? Open an account online or visit one of our convenient branches today!