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What Information Is Required to Open a Bank Account?
When you know what to expect and how to prepare, opening a new bank account is simple and quick. Whether you apply for an account online or in person, you will need a government-issued ID and personal information such as your social security number, as well as the means to pay a potential minimum opening deposit.
The following items are required to open a new checking or savings account.
Know the basics: checking and savings
You will likely open a checking, savings, or both accounts. Here are the pertinent details about each.
Choose checking if you want to:Choose savings if you want to:* Pay your bills
* Write checks
* Make debit card purchases* Build an emergency fund
* Put away money for specific goalsWhat to look for in a checking account:What to look for in a savings account:* No monthly fees
* Low or no overdraft fees
* Convenient ATM access* High-interest rates
* No monthly fees
Savings, meanwhile, creates a vital financial cushion. Some banks, particularly online banks, offer competitive interest rates, whereas others offer almost nothing.
Collect your personal information: A checklist
Whether you are opening a checking or savings account, you will be required to provide essentially the same information. Here’s a checklist:
Identification: A valid, government-issued photo ID, such as a driver’s license or passport, is required. Non-drivers can obtain a state identification card from the Department of Motor Vehicles.
If it is not on your identification, you will likely be required to provide additional personal information to verify your identity, such as your date of birth, Social Security number, phone number, and email address.
If you are opening a joint account, you must provide the following information for co-applicants: Because the account will be shared, the identification and personal information of all account owners is required.
Do you require co-ownership? If you’re under 18, you’ll likely need a parent or legal guardian who can sign legal documents with the bank as a co-owner.
Does this fit the bill? If you have credit history issues or if you are not a U.S. citizen, let the bank know so they can determine if the loan is right for you. (With a second chance checking account, those who have been denied a bank account can get a fresh start.)
Open your new account
Apply online or over the phone and make your initial deposit. Some banks require a minimum opening deposit, typically between $25 and $100 for basic checking accounts, while others do not. If you already have an account at another bank or credit union, you can easily transfer funds into the new account. Your initial bank may assess a fee for this transfer.
If this is your first bank account, you should inquire about the bank’s policies. The majority of banks require you to open an account in person and fund it with cash or a check. However, some banks will allow you to open an account and fund it later.
Monitor your new account for changes to features, service terms, and fees, and learn how to avoid them. Monthly maintenance, overdrafts, and wire transfers may incur fees.
Close your old account, if needed
Knowing how to properly switch banks can prevent you from incurring late fees and headaches. Ensure a smooth transition by addressing the following:
Direct deposit: Provide your employer with your new account details.
Bills paid automatically: Cancel any old ones — whether through the bank’s own bill-pay platform or, for example, your cable provider’s website — and create new ones with your new account information.
Linked accounts and recurring transfers: This could involve setting up a transfer between a new checking and an existing savings account, or ensuring that your PayPal information is up to date.
Mobile applications, text banking, and alerts: Download your new bank’s app, delete and sign out of your old bank’s app, and disable any alerts you were receiving.
Destroy any blank checks left over from the previous account.
Safe-deposit boxes: If you are severing all ties, collect your belongings in person and consult your rental agreement for specifics on closing out your box.
Obtain a written statement from your old bank confirming that your account has been closed, and inquire about the bank’s account reopening policies. Why? Some banks will reactivate closed accounts in order to accept automatic payments or deposits, placing you back on the hook for any fees.
Find a bank that meets your requirements.
Good accounts should offer competitive interest rates, low fees, and additional customer-friendly features.