Having a bank account is a necessity in this day and age. Check cashing places charge high fees for their services. Many transactions, such as reservations and online purchases, require at least a Visa debit card. Opening a bank account is easy and takes only a few minutes. It can be done in person at a branch or online on the bank’s website. The process is similar at all banking institutions, from Bank of America to Wells Fargo to Citigroup.
Choosing a Bank
Choosing a bank is a very personal decision. Study their terms, offerings, and locations carefully. And check customer reviews online.
Ask your friends and relatives whether they would recommend their financial institutions and why. Compare products, services and fees at different banks. While all banks offer savings and checking accounts, the services and fees will be different. Some banks offer free online banking. Other institutions offer free checks. The fees associated with the accounts will also vary. Overdraft fees for checking accounts can be as high as $39 or as low as $20. Also, dividend rates for savings accounts or certificates of deposit (CDs) will play a big role in your decision if you are planning to deposit a large amount. You may want to consider how conveniently located it is. If it offers attractive products but is too far away, check to see if they offer special services, such as a remote deposit option or prepaid deposit envelopes and phone support services. Choose the right financial institution based on your current needs.
Locating the Branch or Website
While many banks make it very easy to open accounts online, some still prefer to help their customers in person. This is partially due to the increasing number of identity theft crimes. Search online to find a branch close to you or the bank’s website if you prefer to do it online.
Choosing Products
Go through the list of products and pick the ones that work the best for you. Many banks offer several different checking account options. One option may have per-check charges, another may only allow a certain number of transactions per month. Compare the options and pick one. You may also need an ATM or a debit card. Ask about online services so you can keep track of your account online. You may want to open a savings account for the emergency fund. If you have a large amount, consider a money market account. Money market savings accounts pay interest on the money you keep at the bank.
If you are at a branch, a customer service representative will explain the differences between different accounts. She will also give information about balance limits and any fees that are associated with each account.
If you are online, this information can be found in product description section. You will have to make a decision without the help of a personal banker. You may need to go to the section “Open Account Online” and then click on the product you want to open.
Providing Information
Next, regardless whether you are online or at a branch, you will need to fill out an application and provide your personal information, such as name, address, Social Security number, phone number, driver’s license or ID number, etc. If you are at a branch, the customer service representative will request to see your driver’s license or ID. This is mandatory for compliance with the federal regulations.
Some banking institutions process the account applications without the hard copy, meaning that you don’t need to mail your application in. Others want to receive the application in the mail before they open an account for you. Follow the directions online to complete your application.
Reviewing Terms and Conditions
After you have provided the information, you will receive a list of terms and conditions for each type of account you are opening. It is your responsibility to read them and make sure you understand the information. The disclosures will list all the fees and penalties associated with the accounts. You may need to sign a copy at a branch.
If you are applying online, you may need to type in your name in place of a signature or click on “I Agree” button. The financial institution may also require you to print the form, sign and mail it in.
Making a deposit
In most cases a deposit will be required to be made into the account. If you chose an account that requires a minimum balance, your deposit will need to be at least that much. If no minimum balance is required, the amount is at your discretion. For checking accounts, it is recommended to deposit at least $25-$30 to cover the fee for the first order of checks. The deposit can be made in a form of cash or a check, unless specifically requested otherwise.
If you are opening you account online, you will have an option of making a deposit electronically from an account at another financial institution or mailing it in. If you choose to make the deposit online, you can do so by providing the account information. You may also choose to do it via a debit card. Then you will need to enter the debit card information. Follow the steps listed on the website to complete this transaction.
If you are transferring a checking account from one financial institution to another, make sure that you do not have any outstanding checks before your close your old account. The checks will be returned and fees will be charged if the account is closed. Banks generally advise to keep some money in the bank for a couple of weeks in case any transaction clear.
At this point, if you are at a branch, you may receive a book of temporary checks, your account number card to keep in your wallet and copies of the disclosure documents. If you have filled out the information online, all these will be mailed to you. Congratulations, the account opening process is now complete.
