Thinking about opening a new bank account? Here is what you need to know.
Should you open a bank account?
Nowadays, not having a bank account is almost the same as not having a healthy financial life. However, to choose the one that will best meet your needs, you will have to consider many aspects. Find an institution that offers both what you need and outstanding advantages, like great welcome bonuses.
A bank account may serve for various purposes. It can help you make transfers, receive payments, invest your money, earn interest, buy using credit, get discounts, etc. There are options for individuals and businesspersons. And by having one, it is possible to also ask for a loan or other financing products.
As we have already said, choosing the right bank, and the right bank account, is a personal choice. Because everyone’s priorities are different, so will be the decision-making process. First it is important that you know what your financial profile is, so that you learn what you are searching for.
Whether you are opening a bank account for the first time, or you just want to change accounts, pay close attention to what we have to say.
Here is your step-by-step guide
Today, it is quite common to subscribe to an account directly through the bank’s website or mobile app. Depending on the bank, the application methods and options will vary. Some also accept calls, but most of them go for in-person requests.
Sometimes, the application starts with an online form, but later it can ask for other means of contact. Regardless of what will be asked from you, generally speaking, they tend to include two things: personal information and initial deposit.
Checklist for opening your bank account
Necessary documentation – You will need to present a valid photo ID and other basic information, such as birthdate, social security or taxpayer identification number, and phone number. In case you are seeking a joint account, this information will be asked of all applicants. For those who are less than 18 years old, a co-owner, who can be a parent or legal guardian, will need to sign the legal documents.
Initial deposit – Some banks will ask for one, sometimes you will need to do it right away, or during one of the steps of the application. In case this is not your first account, simply transfer money from your one. But a check or cash will work simply fine as well.
Which bank account should you open?
Types of banks
Traditional banks – Traditional banks are those we are already used to. They are easy because you can just visit their local branch as opposite to getting lost in a robot customer service call. They also normally offer more than just checking and savings accounts.
Credit unions – These are not-for-profit institutions, and they mostly offer related products to those of traditional banks. Their rates are often extremely competitive, as their focus is not on profits.
Online banks – Almost the same as traditional ones, except that there is no such thing as a local branch. This is a trend that is rising, and so are their offers, but withdraw options are still extremely limited.
International banks – As the name already says it, they are best for those who work with foreign currencies.
Types of accounts
Checking accounts – They allow you to easily deposit and withdraw money for your routine needs. As a result, they were created to give you easy access to your money.
Savings accounts – They are designed to hold your money over a lengthy period of time, allowing you to accrue interest and save money for future plans.
How to responsibly manage your recently opened bank account?
Finally, know that you do not need to choose only one. For example, you can open different accounts for diverse needs, which can include one for paying your bills and receiving your salary and another for planning your retirement.
But, most importantly, even though sending a bank application does not take exceedingly long, planning to open a bank account, and especially choosing which one to open, should take as long as you need. The thing about managing bank accounts is that they need to work towards your wellbeing. Therefore, do not lose sight of what you earn, adapt your needs to this number, and always keep track of you bank transactions.
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