How to Open a Bank Account

If you are looking to open your first bank account,monthly fee, it might have a higher per-transaction
or to opening another bank account, then you willcharge. It might not allow you certain functions that
want to follow these simple steps.you need, which might include check-writing. Read all
1. Choose a banking institution.of the fine print before you sign up for an account.
Ask your friends and family where they bank and ifRemember that banks might offer you lower
they like it. What services are important to you? Dointroductory rates, which will rise at the end of a set
you want 24-telephone banking? Is it important thatperiod (sometimes three or six months). If you
they have lots of ATM machines (automated tellerchoose to take advantage of the low introductory
machines)?rates, or of a free introductory period, and you
You might also consider opening your account at aintend to change your plan at the end of this period,
credit union. A credit union is a smaller bankingbe sure to write a reminder on the calendar.
institution that is limited to a certain segment of the4. Provide your Information.
population (sometimes by region or employment).You will need to bring identification with you to open
Credit unions often offer higher interest rates onup your bank account. They will probably ask for
investments and lower interest rates on loans; theyphoto id, such as a drivers license or passport. You
can afford to do this because they are non-profitwill also be required to provide your social security
organizations who are taxed differently than banks.number or social insurance number. If you are
There are some disadvantages, however, includingplanning on opening up a bank account for your child
fewer ATM, sometimes shortened store hours, andwho doesnt have this information, call your bank to
possibly a difference in services. You might not evensee what options you have. Often, you can open
know that you are qualified for membership at ayour childs account with your information.
credit union, so consider doing some research.5. Read the contract.
Consider which location of your bank is closest toRead the contract for the account before you sign it.
you and will be most convenient to have as yourYou want to see if there are any extra hidden fees.
branch location.You also want to be sure that you understand the
2. Choose your account type.commitment you are making to the bank. Opening a
The two most common account types are checkingbank account is a big deal and you want to know
and savings. Go to your banks webpage to see whatwhat you are doing. Be sure to ask for clarification on
benefits they offer for each account type. Theyany points you dont understand. The bank will be
probably offer more than one savings account andpleased to help you.
more than one checking account. Do you qualify for6. Get your card.
any discounts, perhaps the student account, or theThe bank will give you an ATM card. This might be a
seniors account? These often have comparabletemporary card that is replaced by one you get in
benefits to regular accounts but with lower prices.the mail, or it might be your permanent card. If you
You will also probably get to choose between aopened a checking account, you might get checks to
passbook or statement based account. If you wantuse. Again, these might be temporary checks until
to have your account updates mailed to youyou get your real checks by mail.
regularly, choose to have statements sent to you.Your banker will show you how to use your card,
Find out the benefits of your account: will you beand might take you through an instruction on how to
able to do online banking or telephone banking? Canuse the ATM if you need help with that. You will be
you set up automatic bill payments? Ask about extraable to set your own password for your card.
features that can make your banking life easier.Once youve followed all of these steps,
3. Dont just look at the price.congratulations! You have a bank account! This is an
Sometimes a lower monthly fee is not the best wayimportant step in being able to handle money well.
to judge an account. If your account has a lower