Opening a bank account for the first time may seem like a daunting task, but it doesn’t have to be. As with most things in life, knowing what to expect in advance helps eliminate uncertainty (not to mention jittery nerves).
Before jumping headfirst into opening an account, it’s good to do a little research to help ensure you end up with an account that works for you. And knowing what type of personal information and documentation you’ll need should help make the account opening process as smooth and painless as possible. Here are some tips to help get you started:
Figure out what kind of account you need.
There are many different bank accounts out there, so knowing which type you’re looking for is critical. Do you need a checking account or a savings account? Maybe both? Each type of account has its own features. For instance, a checking account is useful to pay bills and make debit card purchases. A savings account, on the other hand, is typically used to save up for things, whether those goals include buying a new car, going on a vacation, or simply establishing a “rainy day” or emergency find. If you’re a high school or college student, there are even Student Checking and Student Savings accounts that could be a good fit.
Review account features and fees.
It’s good to think about which account features are important to you. For example, if you’re looking to open a savings account, you’ll want to review the account’s interest rate. The higher the interest rate, the more money you’ll make by having your funds in the account. There are even some checking accounts that pay interest as long as you maintain a minimum balance, like BankFive’s eAccess Checking account.
It’s also a good idea to review any fees associated with the account you’re interested in. Is there a monthly maintenance fee? Will you be charged a fee if your balance falls below a certain threshold? BankFive offers a Free Checking account with no monthly maintenance fee, or minimum balance requirement, which could be a good fit if you’re looking to open a checking account while avoiding those fees.
Know which tools you’ll need to manage and monitor your account.
Depending on how you’ll interact with your account, there are a number of things you should evaluate before deciding which bank and account to go with. For example, if you’ll be doing most of your banking “on-the-go”, you’ll need access to Online Banking and a mobile app. Do the bank’s Online Banking and Mobile Banking platforms allow you to easily transfer funds from one account to another? Do they have a Bill Pay feature that allows you to pay your bills online? Can you set up email or text message alerts? Check out the bank’s website, and read through mobile app user reviews in the app stores to get a good understanding of what they offer.
You’ll also want to review which ATMs you’ll have access to. Does the bank have an ATM near you? It’s good to know specifically which ATMs will be free for you to use. If you use an ATM outside of your bank’s ATM network, you could be hit with fees from both your bank and the owner of the ATM as well.
If you prefer to do your banking face-to-face, you should ensure that you’re opening an account at a bank that has a branch close to you. And if you’ll be doing a lot of banking within the branch, be sure to choose an account that doesn’t charge a fee for in-branch transactions. With online banking becoming more and more popular, many banks are now offering “online-only” accounts with added perks, but the catch is that those customers are charged a fee when they visit a branch to complete a transaction.
Gather necessary documentation.
Whether you’ll be applying online or in-person you’ll need to have the appropriate documentation ready. When applying in person, you’ll typically need to provide a valid, government-issued photo ID, such as a driver’s license, passport, or state ID card from the Department of Motor Vehicles. Some banks require a second form of identification as well, such as your Social Security card or birth certificate. You’ll likely also need to verify your address, so it’s a good idea to bring along a recent lease or utility bill.
If you’re applying online, you’ll usually need to enter your license number (or the number associated with any other type of government-issued ID you’re using), Social Security number, and birth date. Online applicants may also be required to successfully answer a series of ID-related questions to confirm that they are who they say they are.
And, if you’re under the age of 18, you will most likely need to have a parent or legal guardian open the account with you as a joint account holder. If you’re applying in-person they’ll need to come with you, and if you’re applying online they should be there to provide their identifying information as well.
Open your account!
Fill out the necessary paperwork or online application, and provide the bank with the funds for your initial deposit. If you’ve applied online it could take up to a few days for your application to be processed, and even if you open an account in-person it could still take several days to receive your checks or ATM/debit card.
Good luck with opening your first bank account. It’s a great first step toward achieving your financial goals!
Before jumping headfirst into opening an account, it’s good to do a little research to help ensure you end up with an account that works for you. And knowing what type of personal information and documentation you’ll need should help make the account opening process as smooth and painless as possible. Here are some tips to help get you started:
Figure out what kind of account you need.
There are many different bank accounts out there, so knowing which type you’re looking for is critical. Do you need a checking account or a savings account? Maybe both? Each type of account has its own features. For instance, a checking account is useful to pay bills and make debit card purchases. A savings account, on the other hand, is typically used to save up for things, whether those goals include buying a new car, going on a vacation, or simply establishing a “rainy day” or emergency find. If you’re a high school or college student, there are even Student Checking and Student Savings accounts that could be a good fit.
Review account features and fees.
It’s good to think about which account features are important to you. For example, if you’re looking to open a savings account, you’ll want to review the account’s interest rate. The higher the interest rate, the more money you’ll make by having your funds in the account. There are even some checking accounts that pay interest as long as you maintain a minimum balance, like BankFive’s eAccess Checking account.
It’s also a good idea to review any fees associated with the account you’re interested in. Is there a monthly maintenance fee? Will you be charged a fee if your balance falls below a certain threshold? BankFive offers a Free Checking account with no monthly maintenance fee, or minimum balance requirement, which could be a good fit if you’re looking to open a checking account while avoiding those fees.
Know which tools you’ll need to manage and monitor your account.
Depending on how you’ll interact with your account, there are a number of things you should evaluate before deciding which bank and account to go with. For example, if you’ll be doing most of your banking “on-the-go”, you’ll need access to Online Banking and a mobile app. Do the bank’s Online Banking and Mobile Banking platforms allow you to easily transfer funds from one account to another? Do they have a Bill Pay feature that allows you to pay your bills online? Can you set up email or text message alerts? Check out the bank’s website, and read through mobile app user reviews in the app stores to get a good understanding of what they offer.
You’ll also want to review which ATMs you’ll have access to. Does the bank have an ATM near you? It’s good to know specifically which ATMs will be free for you to use. If you use an ATM outside of your bank’s ATM network, you could be hit with fees from both your bank and the owner of the ATM as well.
If you prefer to do your banking face-to-face, you should ensure that you’re opening an account at a bank that has a branch close to you. And if you’ll be doing a lot of banking within the branch, be sure to choose an account that doesn’t charge a fee for in-branch transactions. With online banking becoming more and more popular, many banks are now offering “online-only” accounts with added perks, but the catch is that those customers are charged a fee when they visit a branch to complete a transaction.
Gather necessary documentation.
Whether you’ll be applying online or in-person you’ll need to have the appropriate documentation ready. When applying in person, you’ll typically need to provide a valid, government-issued photo ID, such as a driver’s license, passport, or state ID card from the Department of Motor Vehicles. Some banks require a second form of identification as well, such as your Social Security card or birth certificate. You’ll likely also need to verify your address, so it’s a good idea to bring along a recent lease or utility bill.
If you’re applying online, you’ll usually need to enter your license number (or the number associated with any other type of government-issued ID you’re using), Social Security number, and birth date. Online applicants may also be required to successfully answer a series of ID-related questions to confirm that they are who they say they are.
And, if you’re under the age of 18, you will most likely need to have a parent or legal guardian open the account with you as a joint account holder. If you’re applying in-person they’ll need to come with you, and if you’re applying online they should be there to provide their identifying information as well.
Open your account!
Fill out the necessary paperwork or online application, and provide the bank with the funds for your initial deposit. If you’ve applied online it could take up to a few days for your application to be processed, and even if you open an account in-person it could still take several days to receive your checks or ATM/debit card.
Good luck with opening your first bank account. It’s a great first step toward achieving your financial goals!