Opening a Bank Account
- Opening a checking account can help you establish good credit.
- A savings account can help you save money for large purchases.
- Having a checking or savings account (or both) helps you establish a relationship with a bank, which will allow you to deposit or cash checks.
What you will need to open a bank account
- Two forms of identification.
- A U.S. or foreign government-issued form of identification with your picture on it. (Each financial institution has its own policy on which foreign IDs it accepts.)
- A second form of identification: Some banks may require a Social Security card, a bill with your name and address on it, or your birth certificate.
- A Social Security number or ITIN; if not, you may only be able to open a non-interest account.
- Money to open the account.
Questions to ask your bank representative
- Minimum balance required to avoid monthly service fees and what are those service fees
- Transaction limitations
- Direct deposit options and whether it eliminates the monthly fee
- Per-check or transaction fees
- Fees associated with use of automated teller machines (ATMs)
- Internet and/or mobile banking access and if there is a cost
- How to avoid overdraft fees
- Options for low balance alerts
Managing Your Checking Account
Once you have your checking account, you need to manage it in order to keep it. Good account management helps you avoid expensive fees and helps you maintain the account.
- Keep enough money in your account to cover your payments or withdrawals, your bank might close your account.
- Your bank may waive monthly service fees if you maintain a minimum balance or sign up for direct deposit.
- If your bank has transaction alerts or low-balance warnings, be sure to sign up for them.
- Avoid overdraft fees—keep a positive balance in your account.
- Review your bank statement at least monthly.
- Use your bank’s ATMs to withdraw money. They generally do not charge a withdraw fee for their network ATMs.
Five Questions for Making Financial Decisions
- How much does this cost now? How much will it cost over time?
- Are there fees, taxes, penalties, or other charges? When do those apply?
- How do I avoid paying for extra services or add-ons if I do not want them?
- Can I cancel and get my money back? What is the deadline for cancelling?
- What are the payment options?