To
open an account, you will need to choose a bank and provide the bank with some
important information, including your ID and proof of address. You usually need
to be 18 to meet the bank's eligibility criteria. Finally, you may want to
credit the account or have a minimum balance to avoid charges.
Key Points to Remember
•
To open an account, you must first provide government-issued identification,
your ID number, and your physical and mailing address.
•
When you decide to open an account, you must read the information to know the
account fee or minimum balance.
•
You can decide which bank or account you want based on the features you're
looking for, whether it's high interest rates, low minimum withdrawals, no ATM
fees or something else.
What You Need to Open a Bank Account
When
opening a new bank account, you must submit documents to the bank or credit
union so that they can verify your identity.
Prepare
the following:
•
Government-issued ID (such as a driver's license, passport, or military ID)
•
Your identification numbers
•
Proof of your physical and postal address
•
Down payment (if required)
If
you don't have a government-issued ID, you can use another ID. Ask your bank
what other forms of identification they may accept.
Depending
on your situation, your identification number may be your Social Security
number, visitor identification card number, taxpayer identification number, or
government-issued identification number. If you are a US citizen, your social
security number may be your social security number.
You
will need to provide this information in some form whether you open an account
online or in person.
Choose a Bank or Credit Union
After
gathering all your documents, you will need to choose the best bank or credit
union for your situation. If you know what type of account you want, you can
search for the best deal, whether you're looking for an online checking
account, a high-income savings account, or something else entirely. There are
three main types of financial institutions:
•
Banks, including local banks and large banks: These may be popular
brands in your area or nationally. They should offer most of the basic services
you need, including checking and savings accounts, debit and credit cards,
mortgages, personal loans, etc.
•
Credit Unions: Credit unions are financial institutions that
have customers that offer many services and products like banks. If you choose
to join one of these non-profit organizations, you will often benefit from
competitive rates because they do not seek to raise profits. But that's not
always the case, so take a close look at the billing structure.
•
Online banking and credit unions: These companies operate
entirely online. There are no branches to visit (or pay) and you have to handle
most service requests yourself. If you can access and feel comfortable with a
computer or mobile device, and do basic banking, online banking can help you
lower your bills and earn higher interest on the account. security.
Select
an Account
If
you don't know what type of account you want, think about your needs.
• Current Accounts: These accounts are usually used to make payments and receive direct deposits.
• Savings Accounts: These accounts allow
you to withdraw your savings and earn interest on your current savings.4
•
Money market accounts: These products sometimes earn more
interest than savings accounts (while retaining access to cash). You can also
have debit and check writing options in these accounts.5
•
Certificates of Deposit (CD): These products can earn you
more money than savings accounts, but require you to lock up your money for a
certain period of time.6
In
one of the categories above, the bank can offer several products, each with a
different name and level of service. These accounts may have different minimum
balances, fees or interest rates.
The
general rule is to choose an option that has a mix of features and fees that
meet your needs and budget.
For
example, if you think that you will not keep a large amount of money in the
account, you can open a bank account with a small initial deposit and a small
or no minimum balance and money requirement. don't find yourself stuck. making
unnecessary payments.
Your Financial History
Your financial history will not be flawless to open a bank account, but it can influence the bank's decision to approve or reject your application. Your bank or credit union can use ChexSystems, a customer intelligence company that analyzes checks and savings accounts, to determine the risk a customer may pose to the company where they are requesting an account.
ChexSystems is a
bank-owned credit reporting company. You don't need good credit to get a bank
account, but if you're having trouble opening an account, you may want to check
your credit report and get a copy of your ChexSystems report.
Opening an Account
Once
you have selected a bank and account type, you will need to provide your bank
information and sign a document. You agree to comply with certain rules and
accept responsibility for certain activities on your account. Be sure to read
the disclaimer before opening a bank account. Pay close attention to the fees
and make sure you know how often you can withdraw from the deposit.
Print,
Sign and Send (if Necessary)
If
you open a bank account online, you can print, sign and send documents to the
bank before opening the account. Some banks use electronic statements and
confirmations to make the banking relationship legally binding. You can do
everything online.
Others
still require a signed document to open an account. Until the bank receives the
documents, your account is inactive.
Fund Your Account
If
you open a checking or savings account, you'll usually need to make an initial
deposit into the account. Sometimes this is required as part of the login
process, and other times you can do it once the account is active.
There
are several ways to verify your account:
•
Cash Deposit: Must be available for you to spend within one
business day.
•
Deposit money or money: Money should be available a few business
days after confirmation, but it may take longer because this is a new account.
•
Set up direct deposit with your employer: If your company
offers it, instead of receiving a physical paycheck, your earnings will be sent
directly to your new account.
•
Electronic Fund Transfer: You can transfer money from another bank
account to make your first deposit.
Start Using the Account
If
you have completed all these steps, you should have a new bank account in your
name. It should be ready in minutes to days. For checking in a savings account,
look for a debit card or ATM card in the mail.
You
can also get a check or can order a check. To get the most out of your account,
you can sign up for account features that help you manage your money,
including:
•
Online Bill Payment: This feature allows you to pay your bills
electronically.
•
Remote Deposit: Your mobile banking app can allow you to
deposit money remotely so you don't have to visit a branch or fill out a
deposit form.
•
Alerts: Sign up for text or email alerts to notify you when your
account balance is low or when a large withdrawal occurs.
Frequently
Asked Questions (FAQ)
What
do I Need to Open a Bank Account?
When
opening a new bank account, you must provide identification so that the bank
can verify your identity. You'll need to bring government-issued
identification, such as a driver's license, passport, or military ID.
If
you don't have a government-issued ID, you should ask your bank what other
forms of identification they can accept. You will need to provide your
identification number, which may be a Social Security number, visitor
identification number, or other government-issued identification number.
Finally, you'll need proof of your physical and mailing address, as well as an
initial deposit, if required.
How Much Money Do You Need to Open a Bank Account?
Each
bank has its own requirements for opening a deposit account. Most banks will
require an initial deposit ranging from $25 to $100. However, you can also find
a few banks that will allow you to open an account without a deposit. Be sure
to ask the bank how much you need to deposit to open an account and what the
minimum deposit is to avoid fees. Make sure the bank you invest your money in
is FDIC insured.
How Long Does It Take to Open a Bank Account?
The
process of applying for a new bank account is quick. You can apply online in 15
minutes or less, although it may take a little longer in person. The bank may
also take a few days to verify your information and allow you to start using
your account.
0 Comments