Opening a bank account It is not that easy to walk for a tailor and hand over your money. Creating a new account requires a little preparation and consideration. For example, you have to decide what type of account you want and how you want to use it. Fortunately, while banking jargon can frighten, this process is not difficult once you know some banking basics. Follow step-by-step to set up your first account.
Opening a Basic Account
Make sure you’re eligible to open an account. Before you go to the bank, it is wise to check whether you complete all the criteria to open an account. As a general rule, most banks will need the following:
-If you are under 18 years of age, then some banks may need to sign some form when creating your accounts. Not all banks do so, so if you do not want your parents to join your banking, then try to email the banks, before you ask them if they need to sign your parents is.
-You will need a valid identity and be prepared to share basic information about yourself. In the US, you will usually need your Social Security Number.
-You will need at least the minimum amount to open an account. This can vary depending on the bank and account you choose. For example, a Basic Bank of America savings account requires a minimum $ 300 deposit.
Choose the bank that’s best for you. Not all banks are the same, even when it comes to basic personal accounts, it may be wise to contact the banks in your local area for what you actually get when you open the original account. While all banks are different, they can usually be divided into two general categories: large chain banks and small locales. Look down:
Large chain banks: Large banks usually have branches in most towns and cities across the country, which means that you will be able to basically get the same service, where you go. This detailed coverage can help you avoid the charges to use the services of other banks (like ATM fees, etc.). Large banks usually have resources to offer services like 24-hour helpline for their customers. Apart from this, these banks have a stable, reliable reputation – they are not likely to fail or present with “surprises” difficulties.
Smaller local banks: Small banks provide a more personal, human experience. They are friendly in many ways in comparison to the big banks – not only will they be ready to give more personal, one-on-one attention, but when they do something wrong they often “work” with you. Be prepared. Overdraft from your account). Small banks generally take small fees to use their services. Small banks often invest their money in local communities rather than national, or multinational projects, in which chain banks can invest. On the other hand, small banks fail more often than big banks (though it is still very rare, though). In addition, credit union is another option for banking. Credit unions are not beneficial financial institutions, often with the “community-oriented” and “mission to serve people”, not profit. Credit unions have successfully made their services more accessible by offering partnerships with other credit unions to offer shared branch banking. And atm.
Pick the type of account you want. Most of the time, when someone opens their first bank account, this is a regular checking or savings account (or both). With these two types of accounts, you can safely store your money with the bank and you can withdraw it if you need it. However, each type of account is best for different tasks. Look down:
Checking: A checking account is one that most people use for day-to-day purchases. With a checking account, you will get a checkbook and a debit card, which you can use to pay things with money in your account. Money in a checking account does not change over time – if you want more money, you have to keep it in yourself.
Savings: As its name suggests, saving money is the best time to save money. Money in a savings account gradually earns interest – in other words, the bank will pay a small amount to deposit your money with it. The more money you have in the account and you save it, the more interest you get. You can still withdraw money from banks and ATM savings accounts, but you can not usually use it for payment by check and debit card.
If you have enough money to meet the minimum deposit for both, both the checking and savings accounts are usually best. You can use a checking account for your daily expenses and save extra interest in your savings.
Visit your bank and ask to open an account. Opening an account in person is usually the best option for account holders for the first time. One major advantage of opening an account individually is that you can ask all your questions to teller and get immediate reply (unlike wait you have to do online or over the phone). Also, because you can sign forms and get your confirmation document on the spot, the process of opening an account is usually faster in the person.
In the rest of this section, you will be assumed that you are opening an account in person. However, depending on your bank, you can open an account on the phone or online. These options vary from bank to bank – all banks will not allow you to open your account in these ways.
Ask important questions before you finalize your account. Now there is an excellent time to ask for clarification on any issue related to your account that you do not understand. Below are some suggestions for those questions that you would like to ask, but do not be afraid to ask any other.
Is there a monthly fee to keep this account? If so, what is it?
Is there a minimum balance that I should keep in this account? If so, what is it? What type of fees will be applicable if I go under that limit?
What is the interest rate of my savings account? How often does interest occur?
Do I have limit of transaction amount (deposit / withdrawal, check writing, ATM usage) per month?
Where can I get cash without paying any fees? What is the fee for using ATMs which is not related to this bank?
Am I depositing the account which is applying for the insured person by the Deposit Guarantee Scheme (DGS).
Supply the necessary information to create your account. As mentioned above, to open a checking account, some basic pieces of personal information are required. You may or may not have to provide documentation to prove this personal information. It depends on the exact bank with which you are opening the account. In general, this is a good idea:
The proof that you say is you are: You have a government issued ID with your photograph (driver’s license or passport is best).
Proof of address: A phone bill, driving license, or other official document with your name and address will usually be.
Evidence You are a registered citizen: The bank will ask you to be “on record” with the government, for your social security number, taxpayer identification number, or employer identification number. Unless you know this number, you do not usually need to be with your social security card etc.
Keep the account documents you receive secure. Once you have completed your account, you will receive such documents, which will contain important information about your account. Put them in a strong place, like a strong box. Do not let those people who do not trust you to access these documents – they may be able to use them for malicious purposes. If you can, then it is a wise idea to give the following information for memory so that you do not have to rely on documents in the future:
Your four digit PIN number: You need to use your debit card for purchase.
Your bank account number: You need this for financial work like direct deposit
Your Social Security Number: You Need This for Different Tax and Financial Functions in the Future
If you feel that your account information is in the wrong hands, you can always contact your bank and request a “freeze” on your account to prevent unauthorized use.
Using Your Account’s Features
Withdraw money from your account when needed. The biggest benefit of having a bank account is that it is a safe way to keep your money safe. Money can not be lost or stolen in the bank – it’s yours unless you spend it. Even in the event that your bank has been robbed, your money is insured by the government, so you will not lose it. When you want to receive money in your bank account, you need a withdrawal. There are several ways to do this:
Go to the bank individually and fill out an evacuation form. You will usually need your account number and basic personal information for this. It takes some time compared to other options, but it is necessary for special tasks like large extraction.
Use ATMs. See below for more details.
Online. In this situation, your withdrawal is usually limited to the transfer between accounts and payments of other people – you can not “get cash” online. See below for more details.
Get cash from an ATM. ATM (Automatic Teller Machine) is a convenient way to get cash when you are out and about it. ATMs are located in almost all banks. In addition, you can usually find them in areas of commerce, such as malls, grocery stores and some restaurants.
To use ATMs, you need to know the four digit pin number of your checking account. See our ATM article for detailed instructions.
It is always best to use your bank’s ATM whenever possible. Generally, you will have to pay a small fee to use those ATMs that are not related to your bank. Also note that there may be a limit to the number of ATMs your customers receive each month without charging fees.
But before you can use your ATM or debit card for any type of transaction, they can be online or offline, such as withdraw money from your account using an ATM machine. You have to activate your debit card. The process of activating the debit card is different from the bank in the bank, so you should ask your bank about the process that is to activate your debit or ATM card.
Write checks to pay for purchases. Another way to use your bank account to pay for a purchase is to write a check. This is a convenient option when you do not have cash work. A check is basically an official slip of paper that shows that you promise to pay someone a certain amount. When you write checks to bring the person into the bank, they will use the money to pay from your account.
See our article on writing the check for more information.
Before writing your check, make sure you have enough money in your account. If you do not, then your check will be “Bounce”. This means that the payment will not be made, you have to pay a fee, and you will still be held responsible for the money.
Some banks provide “overdraft security” services for check-writing. In these cases, when you write a check that you do not have enough money to pay, your bank can “spot” to cover the purchase. You still have to pay the fee but you do not have to deal with the check bouncing.
Make a deposit to add more money to your account. When you want to put more money into your bank accounts, you have to make a deposit. With the withdrawal, there are several ways to do this:
Get your money or check in your bank. You will have to fill out a deposit form for which you will have to give your account number.
Use ATMs. Today, many ATMs (especially in banks) allow you to deposit. You will usually have to do this at your own bank’s ATM.
Use mobile check deposit services. A relatively new way to deposit checks is to take a picture of check with your mobile phone and send it to the bank. For this you usually have to download the mobile app of your bank. For example, click here for instructions for Mobile Check Deposit Service of Bank of America. Note that not all banks offer it.
Try your bank’s online banking features. Today, almost all banks will offer some types of online options to view and manage your bank accounts online. When you first open your account, you are usually asked to set it up. These services will be different from the bank and account of the bank. In general, most banks will offer:
Secure online login options at the bank’s official site
Ability to see the balance of your accounts
Ability to view purchase, withdrawals and deposits for each account
Ability to transfer money between accounts
The ability to send money to other people
Set up a direct deposit to make maintaining a balance simpler. Every time you get paid you do not want to travel to the bank? Most employers give you the option to pay directly to your bank account – this is called “direct deposit”. In this case, tax is withdrawn before the money is added to your account.
Talk to your employer’s payroll department if you want to deposit directly. For this, you will usually have to fill out some form and give information about your bank account (such as your account number).
Setting Up Special Accounts
Consider linking your checking and savings accounts. “Connecting two separate accounts separately” usually means that one account is made available to the other for special expenses. For example, if you link your checking and savings accounts, some banks will allow you to use the savings account money to cover overdraft of your checking account. Other benefits include:
Avoiding some type of minimum-balance fee
Receiving a joint account statement instead of two different people
Allow easy transfer of funds between accounts.
Consider making a joint account with someone else. When you open an account with another person, it is called “joint account”. Married couples often open one of these accounts, but no two people can do this. You and the co-openers account have equal ownership on all the money, and they can take advantage of all the services that come with the account. Either the owner can deposit or withdraw money without answering the second holder.
For these reasons, it is important to open only a joint account on which you fully trust. For example, there is nothing that the bank can stop an owner from taking all the money from the account without notice of another.
To create a joint account, both the account holders must agree to the terms of the account and fill their copies of the account creation forms. This means that each person must provide an ID, Social Security number etc.
Generally, most joint accounts carry the “right to be alive”. This means that if one of the joint account holders dies, then the living owner gets all the money in the account.
Consider opening a high-interest account. Looking to earn more interest on the money that you are depositing in your bank account for a long time? Many banks offer special options for starting accounts with high interest rates. It increases your long-term earnings, but you have to meet certain conditions to keep these accounts. See below for more details:
High-interest savings: This account comes with all the benefits of a regular savings account, but there is a minimum balance (i.e., you will need to have more cash in the account). You can also limit it in terms of how often you can withdraw it. In return, you will earn high interest.
Interest Checking: This account contains everything that happens in a regular checking account (ATM privilege, check writing, etc.), but it also includes an interest rate, so it works like a regular savings account is. However, the monthly maintenance charge for these accounts is usually higher. This means that having enough money in your account is in your interest so that the interest is higher than the monthly fee.
Consider a certificate of deposit (CD) for long-term gains. When you put your money into a CD, then you legally agree to keep it off for a certain time. It usually happens from several months to about five years. During this time, you can not add or remove money from the CD. Because you agree that for a long time the banks are agreeing to tell your money “no problem”, CDs generally have a higher interest rate than the original savings accounts.