Newbie Intro to Banking

[Eric Inigo]

Hello BPers. New investor that is closing on my very first rental property soon with a property manager in place since the property is out of my home state. I plan to open a new checking and savings account for this property and will be separate from my personal accounts. That said, is there a difference opening these accounts with a credit union or a national bank? Pros? Cons? Thanks!

[Scott M.]

You may want to sample the online offerings of each type before you decide.  Maybe the smaller credit union or local/regional bank has everything you need in that respect and maybe they don't.  But be sure to check that out.  Also think through how you are going to be sending/receiving money and make sure both local options offer it and in a way that is affordable for you.  Who charges and how much for ACH?  Is a mobile app important to you?  Can you make deposits online or do you have to go in etc....we don't know what is important to you so think through how you bank and that will lead you in the right direction, at least in terms of questions to ask.

What @Jody Sperling said is good for certain types of people.  Some are great with receipts and they don't need a separate account.  Some, like me, not so much and I enjoy keeping everything separate.    Also, don't be afraid to change.  There is nothing that says after 2 months if you realized you made a mistake you can't change.  Don't buy checks as most will give them to you for free or a starter pack, wait and see how you get on with the bank so changing isn't a big deal if you decide to.

We just use the same bank for both business and personal as we found that easier.  You may find the same too.