|
Setting up a bank account is a relatively easy process that shouldn’t take more than fifteen minutes. However, knowing how banks function, and which accounts will best suit your needs will help you make the most out of your banking experience. 
What the bank will need from you
By law, banks must obtain your legal name, social security number, physical address, and date of birth. Bring along a valid government-issued form of identification such as a driver’s license or passport.
A bank will know if you owe any other bank money, so ensure that you’ve paid off any existing debt owed before trying to open a new account.
Types of accounts you can open
Depending on your needs, you may want to open one or several accounts. To help you determine which account to open, ask yourself these questions: How often will I need to access the funds? How do I need to access the funds? How much will I retain in the account?
- A checking account may be the best option if you need to access the funds in your account frequently. Generally these accounts are non-interest bearing. Ask for a debit card if you’d like to access your funds online, at an ATM, or for point-of-sale purchases. You can also access your funds through writing checks.
- A savings account will earn you a small amount of interest while still giving you access to your funds. Most savings accounts require a minimum balance, and will charge you a fee if you fall below it. Savings accounts may also have a limit on how many withdrawals you are able to make per statement cycle. Additional withdrawals may earn you a fee.
- Certificates of deposit (CDs) are accounts that will earn you a higher percentage of interest than a savings account. However, CD funds are held for a certain period of time, with options ranging from 3 to 60 months. You’ll be charged a penalty for any early withdrawals from the account.
How to avoid fees
Banks make big money by charging you fees. Generally, a teller will not offer information upfront about how to avoid fees. Be proactive. Ask about options for overdraft protection, such as a line of credit or a linked savings account. Ask about minimum-balance requirements. Some banks may even send you an email if you fall below a certain balance.
ATM fees can also add up. Ask which ATMs you’ll be able to use without accruing fees.
Knowing your needs and taking a proactive approach when opening your new account will help you make the best out of your banking experience.
|
