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On This Page, You Will Learn:
How banks and credit unions keep your money safe
How to choose the right account for your needs
What kinds of ID you need to open an account
How to protect yourself from scams and predatory financial practices
To use a bank account to safely manage and pay your bills online
Opening a Bank Account
Opening a Bank Account
When you open a bank account, you can:
Deposit money (put it in) from your job, government benefits, or other sources. Many employers in the U.S. will expect you to have a bank account and will put the money you earn directly into it.
Withdraw money (take it out) when you need it.
Pay bills online.
Store money, so you have it for later.
Build trust with the financial system. This is very important later when you want to make bigger purchases.
Types of Accounts
Checking Account
For everyday spending
You can withdraw money using an ATM (Automatic Teller Machine) or a debit card
Savings Account
For saving money you do not need now, but might want later
You make interest (extra money) on the money sitting in the account
How to Open an Account
Bring documents to prove your identity, such as your passport, refugee documents, Social Security number, or ITIN (Individual Taxpayer Identification Number).
Bring a document to prove your current address. Such as a rent or utility statement.
Fill out a form, given to you by the bank, with your personal information.
Make an initial deposit (putting money into the account). Banks often have a minimum deposit requirement of up to $100.
Example
Fatima, who recently arrived from Syria, opened her first bank account after receiving help from her caseworker. At first, she was nervous about signing forms, but the bank offered translation support. Now, she uses direct deposit (when money goes straight to your bank account) to receive her salary from work.
Alternative ID for Banking
Alternative ID for Banking
You need some type of ID to open a bank account. Most Americans use their Social Security Number. But some banks and credit unions accept alternative documents:
Passport (even if expired, as long as it was within the last year)
Consular ID card (Matricula Consular, etc.)
I-94 Arrival/Departure Record
Refugee Travel Document
Driver's license or state ID from your country of origin
Example
Alem, who arrived from Ethiopia, opened his first account using his Ethiopian passport and I-94. He was grateful that he could open an account before getting his Social Security Number.
Fees
Fees
Overdraft fees: If you spend more money than you have in your account, the bank may still pay the expense but will charge you a fee.
Account fees: Some accounts have monthly fees. Ask your bank if they have fees attached to their accounts and what they are. Not all banks have account fees. If you can, find a bank that doesn't have these fees.
Using Online and Mobile Banking
Using Online and Mobile Banking
Online and mobile banking let you manage your money anywhere using your phone or computer. That way, you can do the following from anywhere, as long as you have your device with you:
Check your balance (the amount of money in your account)
Transfer money between accounts or to another person's account
Deposit checks by taking a photo of them with your phone
Pay bills directly from your account
Safety Tips
Never share your PIN (this is a password normally between 4 and 6 numbers long that you will create when you set up your account) with anyone.
Only check your mobile bank when you are on a trusted Wi-Fi connection.
ALWAYS log out of your account when finished.
Example
Lien, who moved from Vietnam, uses her bank's mobile app to pay her phone bill. She likes that the app sends a message every time money leaves her account. This helps her track her spending and avoid overdraft fees.
Avoiding Predatory Practices
Avoiding Predatory Practices
As a newcomer, you may be targeted by dishonest lenders or financial scams. You need to understand how to identify and avoid these traps. By doing this, you can keep your hard-earned money safe.
Common Predatory Practices
Payday loans: Extremely high interest (300-500%)
Title Loans: Risk losing your car if you can't repay
Advance-fee scams: requests for payment before a loan or job is "approved"
Fake check scams: someone "overpays" you and asks for money back
Safe Alternatives
Getting a loan through your local credit union
Nonprofit lending circles (such as your RA or other community organizations)
Credit-builder loans
Community development financial institutions (CDFIs)
Example
Leila was offered a $300 payday loan, but learned that the interest rate was so high that when she would have the money to pay it back (in two weeks) it would cost her $450 to repay! Instead, her caseworker helped her find a credit union loan with no hidden fees.
Making Deposits and Withdrawals
Making Deposits and Withdrawals
When you deposit money, you add that money to your bank account. When you withdraw money, you take it out. You can deposit or withdraw using:
The bank teller (a person who helps you at the bank)
An ATM (Automatic Teller Machine)
Mobile or online banking (using your phone or computer)
Steps for Depositing
Fill out a deposit slip (small form stating how much you're adding to your account)
Give it to the teller, or insert it at the ATM
Keep your receipt (a printed record showing how much was added)
Steps for Withdrawing
Use your debit card (a card connected to your account)
Type your PIN in the PIN Pad (Personal Identification Number)
Keep the receipt
Example
José, who recently arrived from Mexico, deposits his paycheck at an ATM near his apartment. While doing so, he checked his balance (the total amount in his account). He was glad to see that he had enough money to pay rent and buy his wife a gift for her birthday.
Direct Deposit
Direct Deposit
Direct deposit means your paycheck goes straight into your bank account. It is safe, fast, and easy. Many employers use this method.
To set up a direct deposit, you will need:
Your bank name
Your routing number (a number specific to your bank that can be found online)
Your account number (your unique account number)
Here is an example of a direct deposit Authorization for:
Paying Your Bills Online
Paying Your Bills Online
Paying bills online is a safe and convenient way to make sure your rent, utilities, and other expenses are paid on time. Instead of waiting in line or mailing a check, you can pay directly from your electronic device. Paying on time helps you avoid late fees and build a good record with your landlord and service providers.
Common Types of Bills You Can Pay Online
Rent: through your landlord's website, payment app, or property management portal.
Utilities: such as gas, electricity, or water (sometimes called sewage); usually through your city or service company website.
Phone and Internet: with your provider's app or website.
Credit Card or Loan Payment: through your bank or lender's online portal.
Government or Community Services: sometimes through online city or county payment systems.
How to Pay Bills Online - Step by Step
Gather your information
Find the bill: listing the account number, amount due, and due date.
Also, have your payment method ready: debit card, credit card, or bank account.
Go to the official Website or App
Search for your biller's official website.
Look for a "Pay Bill" or "My Account" section.
Create an Account (this only applies to the first time)
You'll usually need an email address and will need to create a password (make sure your password is something you'll remember. But also, something that no one else can guess).
You may be asking for your account number from your bill to link your payment.
Choose your Payment Method
Debit Card - draws directly from your checking account (there may be a convenience fee).
Bank Transfer (ACH) - safe and free in most cases.
Credit Card - use ONLY if you can pay it off (to avoid extra fees from the credit card company).
Confirm and Save the Receipt
Always double-check the amount and due date before confirming.
Save a screenshot or email receipt for your records.
Be Careful! Avoid These Common Mistakes
Always check for https:// and official logos. You don't want to pay on a fake website.
Use a secure network. Avoid public Wi-Fi when paying bills.
Don't share passwords or personal information with anyone.
Double-check the recipient's name before sending payments.
Tips for Staying Organized
Mark due dates on a calendar and/or set phone reminders for due dates.
Use automatic payments (AutoPay) for bills that stay the same each month.
Keep a list of payment websites and logins in a safe place.
Review your bank account statements monthly to make sure all payments are correct.
Example
Basma pays her rent through her landlord's online portal each month. The first time, she used her debit card and took a photo of the receipt on her phone. Then she created a "Bill Calendar" on her fridge, marking rent as due on the 1st of each month. Now, she feels less stress because she knows exactly when and how to pay her rent.
✏️ Let's Practice!
Pull out a piece of paper and write down two bills you pay regularly.
Then, make a plan for how and when you plan to pay them.
For example, I pay my Electricity Bill through www.rockymountainpower.net on the 5th of each month. To make it easier, I set up an Automatic Payment through direct bank transfer, so I never forget!
Understanding Your Paycheck
Understanding Your Paycheck
When you start a job, you will receive a paycheck. This will either be a physical check or a direct deposit to your bank account. Your paycheck shows how much money you earned (sometimes it will also show how much was withheld for taxes).
Pay Periods
In the U.S., different employers pay workers on different schedules. You may get paid:
Every week
Every two weeks (Bi-weekly)
Twice a month (semi-monthly)
Once a month
Ask your employer: "When will I get paid?" Knowing your pay schedule is very important in planning your finances.
Key Terms
Gross pay: the total amount of money you earned.
Net pay: the amount of money you take home (will be less than gross pay).
Deductions: money your employer takes from your gross pay to pay for taxes and benefits.
Pay stub: a document that explains how your pay was divided.
Example
Ayan, who recently started a job at a grocery store, noticed her paycheck was smaller than she thought it would be. Her caseworker explained that part of her earnings went straight to taxes.
✏️ Let's Practice!
Pull out a piece of paper and define these terms in your own words:
Gross Pay
Net Pay
Deductions
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