How To Open A Bank Account

Anyone interest in establishing a banking relationship with a bank or other financial institution should know how to open a bank account. The process for opening a bank account involves locating a bank or financial institution that you want to do business with, completing all required account paperwork and providing verification of your status and funding the account. Once these steps have been completed, you will have access to your funds and the ability to conduct banking activity.

Step 1: Locate a Bank or Financial Institution

The first step in opening a bank account involves locating a bank or other financial institution such as a credit union or savings and thrift association in order to establish the account. The financial institution that you choose should offer a variety of services and products that meet all of your banking needs. This includes checking and savings accounts, certificates of deposits and loan products.

You can choose to work with a financial institution that is in your community or an online bank that is nationally based with local branch offices. You can use the internet to locate the bank, talk to friends and family or visit bank branches that are located near your home or place of business.

Step 2: Complete an Account Application

You will need to complete an account application in order to open the account with the financial institution. The account application can be completed in less than 5 minutes and usually requires that you provide basic data such as your name, date of birth, social security number and other information. This information is necessary in the case of a bank that uses the ChexSystem in order to determine your credit risk for a checking account but is not necessary for savings accounts. You can choose a non-ChexSytem bank if you have bad credit. These banks are found online and are able to assist you with your checking account needs.

You should also be prepared to provide a photo identification card such as a state-issued ID or driver’s license. This is used to verify your identity and ensure that you are the individual opening the account, in accordance with the provisions of the USA Patriot Act requirement for banks.

Step 3: Make a Deposit

After completing the account paperwork, you will need to make a deposit into the account. Some accounts require that a minimum balance of $1,000 or more be maintained in order to avoid monthly fees. Other accounts offer basic services with no minimums or fees other than those that are associated with overdrafts. You will need to make a deposit that corresponds to the type of account that you are establishing with the institution.

You should also inquire about the availability of direct deposit for your account. Direct deposit allows your employer to directly deposit your paycheck into your new account. This cuts down on paperwork and the handling of a physical check that needs to be deposited every time your employer pays you.

Conclusion

If you are looking to open a bank account, follow these steps in order to accomplish this task and establish your banking relationship.