Having the right information and documents before opening a bank account can save you money and time. Here’s what you need to open an account:
You must be 18 years or older and preferably, have a social security number. If you’re between 14 and 18 years old, you must list a parent or guardian as the co-owner of the account.
How Big of A Deposit Is Required?
Most banks don’t require a large deposit to open an account. Only a few online banks may need a minimum initial deposit. Credit unions may charge as little as $5. However, it’s best to find out the requirements of the bank. Additionally, beware of monthly fees that may be charged if you don’t maintain the required minimum balance.
What Kind of An Account Should You Open?
To figure out what type of bank account you should open, be clear about the purpose of the account. The main types of bank accounts include:
Savings Account: If you want to save some money and earn a small interest on it while still having easy access to funds, a savings account is the best option. However, there’s a limit on the number of times you can withdraw from your savings account—six transfer and withdrawal transactions per statement.
Checking Account: A checking account is used for daily expenses, such as paying bills. There aren’t any restrictions on transactions, as is the case with a savings account. You can schedule bill payments and set up a direct deposit for free to receive your paycheck directly into this account.
Certificates of deposit (CDs) and money market accounts are some other types of accounts.
Things to Consider
When you compare banks, here are some things you should consider to pick the best one for you:
Digital Access: Does the bank have a well-built online banking system and mobile app to help you bank from anywhere and anytime?
Banking Fees: Is there a fee to open an account or monthly charges like maintenance fees, ATM withdrawal charges, and the like?
Minimum Monthly Balance: Does the bank charge you a service fee if you don’t maintain a certain amount in your account?
Also, consider the extent of the bank’s services in terms of branches, ATMs, and customer service, and the products it offers (credit cards, auto loans, and the like).