Are you a little confused on how to open a new bank account? Not sure if you qualify, or even know the first steps to take?
While the process can be a bit daunting, it’ll be easier if you approach a bank with all of your paperwork ready and knowledge of the process in mind.
1) Know What Type of New Bank Account You Want to Open
What features are you looking for in a new bank account? It is usually easiest to start with a basic checking and savings account to get started. You can choose from a bank, local credit union, or even online only banks.
There are three big things to remember when you are looking at different institutions. These are:
• Fees – Some bank accounts have extra fees and charges that can be tricky and come back to bite you in the butt. Check if there are overdraft, International use, or out of network ATM charges. Some banks also charge yearly fees to hold the account.
• Minimum Balance – Some banks have minimum balances that are expected to be in the account either on a daily or monthly basis and you get charged if it goes below. Make sure to check on this too!
• FDIC Insured – An Federal Deposit Insurance Corporation insured institution is extremely important as it means that your money is insured for up to 250,000 if the bank were to fail.
2) Understand The Application Process for a New Bank Account
It’s very important to also understand the application process, as this will make it go much more smoothly. You are going to be asked for a few pieces of information that you should hold handy for when you open the account. The financial institution will not budge on these basics, so make sure that you follow the list below!
3) Make Sure You Are Prepared With All Documents And Information For Your New Bank Account
• 2 Forms of Legal Identification – These forms of identification usually include a Drivers License, Passport, State Identification Card, Foreign Issued ID, etc. However, they can also include identification such as a Residential Identification Card. This can be used at most institutions if you do not have two of the first mentioned.
• Money to open the account – Cash, check, or money order that will serve as your first deposit into the account.
• An adult over 18 years old – Minors need to have an adult present if they are opening an account.
• Personal Information – All of your personal information such as name, address, place of work, phone number, social security number, etc.