Opening a bank account is a fairly easy process. Simply select a bank, fill out the required paperwork, provide necessary forms, such as your Social Security number. You might also be asked to fund your account with an initial deposit.
However there are some things you need to look out for!
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Bank Account Eligibility
One of the first things you need to know when opening a bank account is make sure you meet the eligibility requirements. You must be at least 18 years old to open a bank account yourself, otherwise you will need to open a joint account as a minor with a parent or legal guardian as the account co-owner. However, some banks do offer bank accounts that can help teach a minor how to manage their own bank account.
Some banks turn you down if you have criminal convictions related to fraud or financial crimes or if another bank closed your account due to mismanagement, such as unpaid overdrafts.
How to Open An Account
Look into what accounts you are interested in signing up for.
If they offer different methods of signing up, decide which one would suit you best. If you’re fine with signing up online, go ahead and do that. One additional factor to consider is what type of account you’re opening:
- Checking Accounts: Made for everyday transactions. You can make ATM withdrawals, check writing, and bill pay.
- Savings/Money Market account: These are for saving money for goals. So you want to look for the highest interest rate. There are limitations on withdrawals.
- Certificate of Deposit account: CD’s are best for putting away a certain amount of money for a specific time. You know the exact interest rate you’ll get, so you want the highest possible.
Requirements
Here are some other considerable requirements when signing up:
- Clean Record:
- Bank may possibly do credit and/or background checks.
- They can deny applicants with a bad background.
- Social Security Number:
- Banks will require applicants to have their SSN in order to apply for an account.
- This is to report interest and other factors to the IRS.
- If you don’t want to provide it, some will accept a Taxpayer Identification Number.
- Age:
- All banks require you to be 18 years old to open an account on your own.
- Those under 18 will need a parent or guardian as co-owner of the account.
What You Will Need
In order to open an account there are generally some requirements you must first complete:
- Valid ID:
- Drivers License, Passport, or state identification will work as a valid ID.
- Basic Personal Information:
- You will be required to give your birthday, address, SSN (Social Security Number), email address, and phone number.
- Proof of Address:
- Provide proof of your address.
- For example, any sort of bills mailed to you with your name.
- Most banks don’t allow the use of P.O. boxes.
- Initial Deposit:
- Depending on the bank, you’ll be required to have an initial deposit (On average around $25).
- Make your initial deposit via cash, check, or transferable money.
- Your Signature:
- The bank will require you to provide a signature to open the account.
- For online or phone applications, an e-signature or verbal agreement might be recorded.
The information you’ll be asked to provide will be much the same, whether you’re opening a checking account, a savings account or both.
Opening an Account Online
In today’s day and age most interactions are done online. Opening a bank account can also be done online. Whether you decide to open a bank account with a bank that is completely online, or with a bank that has physical locations, the requirements will probably be the same.
Most banks accept online signatures so the process is relatively simple that way you usually won’t have to mail in or drop off any forms.
If the online bank account you decide to open requires a minimum opening deposit, you can easily meet the requirement by doing an online transfer from an existing bank account. This requires you to provide your other account’s information like routing and account numbers.
Conclusion
Opening a bank account is simple. This is especially true when you come prepared with all the required information and paperwork. In addition to forms of ID, Social Security and proof of address, you should check with your bank beforehand if they have any extra requirements.
Hopefully after reading this you understand how to open an account! Be sure to do proper research and start saving today!
Additionally, If you are interested be sure to check out our list of bank bonuses and CD rates!
