Opening a bank
account can be a confusing process, especially if it’s your first time.
However, you can make
the process a lot smoother if you prepare with the documents and information
you’ll need.
1. Decide on the type
of account
If you’re unfamiliar
with banks in your area, see which ones have accounts with the features you’re
looking for. A basic checking or savings account might be all you need.
Compare offerings at banks, local credit unions and online-only banks to see
which offers the best rates of return, the lowest fees and perks such as online
and mobile banking. Also, big national banks, credit unions and community
banks, and online-only banks tend to offer different levels of customer
service. Decide what level is best for you. Once you decide on an account and a
type of financial institution, make sure to ask the bank or credit union these
questions:
- Is the account federally
insured? Money in most banks is backed
up to at least $250,000 by the Federal Deposit Insurance Corp., or FDIC,
to protect depositors in case the bank fails. Credit unions that
participate in a similar insurance program through the National Credit
Union Administration, or NCUA, provide the same level of protection. Those
that offer this insurance must display the FDIC or NCUA logos.
- Is there a daily or monthly
minimum balance? If so, check for any fees
that apply if an account goes below that amount.
- Is there a monthly maintenance
fee and can it be waived? You
may need to fulfill some requirement to avoid this fee, such as
setting up a direct deposit, using a debit card, creating a recurring
transfer or linking savings and checking accounts.
- Are there other fees? Check for a fee disclosure page on the bank’s
website for other costs, such as out-of-network ATM charges, overdraft and
international transaction fees.
2. Review how to
apply
Determine whether you
need to visit a branch to open an account or if you can do it online. The
information you’ll provide in either case will be similar, if not the same.
In the application
process, the financial institution will ask for proof of your identity and
personal information. Depending on the account, you may need another person to
join you. Here’s a general checklist of what to have:
- Identification: You will most likely need to provide a valid,
government-issued photo ID, such as a driver’s license or a passport. If
you don’t have either, you can get a state-specific ID card at the
Department of Motor Vehicles.
- Personal information details: You’ll need to provide basic information to
verify who you are, including your name, date of birth,
current address, phone number, Social Security number (in most
cases) and email address.
- Cash: Have some money, either cash, a check, a
money order or digitally accessible funds, that you can easily transfer
into the new account for the opening deposit.
- A second applicant if you’re
opening a joint account: Because
this type of account requires two people, both may need to be present
to provide their information and verify their identities. Applying
online may be an exception. Joint accounts are most often used by couples
who want to manage bills together.
- A parent, if you’re not 18: To open an account, minors usually must have a
parent or legal guardian as a co-owner who can sign legal documents with
the bank.
With this information
in hand, you should now be able to apply and open the best checking or savings
account for you.
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