In this day and age, it is nearly impossible to be a
functioning adult without having your own bank account. Getting an account is a
relatively easy process, but there are a few things you need to know before you
set yours up. Once you have an account, you'll be able to pay people more
easily, get paid by employers, and also handle a lot of bills with relatively
no hassle. Here are a few things you need to know before opening an account. Chances
are that you can get one with relative ease.
Checking Account
vs. Savings Account
There are two basic types of bank accounts: checking accounts,
and savings accounts. Banks do not discriminate between the two, so if you can get
one, you can get the other. A savings account essentially saves your money as a
backup resource; you can't write checks or use a debit card from that account. A
checking account is much more common because it has greater function: you can
use your debit card and write checks with your checking account.
Legal Identification
In order to get an account, you need identification,
so that the bank knows you are who you say you are. A driver's license is the most common kind of identification, but if you don't
have a license, a government issued identification card or a passport will do
the trick. If you don't have an identification card on your person when you
apply for a bank account, you will be unable to complete the registration
process.
Social Security
Card
You don't need to have the physical Social Security
card, but you will need to provide your Social Security number. So if you don't
have the card on you, make sure you have your social security number memorized.
Proof of Residence
You must have proof of residence to open a bank
account. It's fine if you live with your parents, or in a college dorm, but you
need to have a physical address, and proof that you live at that address (you
may even need to produce a utility bill, lease agreement, etc.). This way the
bank knows where to send your paperwork, and also has documentation of your
whereabouts.
A Deposit Amount
If you're going to open up a bank account, you will
need an initial deposit. Some banks have a minimum initial deposit, while
others merely add a monthly charge for every month that you don't meet a set
balance. You can bring cash, or a check made out to you, and that can act as
your initial deposit.
Local Resident
Some small, independent banks, and nearly all credit
unions, require that you are a local resident. This will rarely be an enforceable
problem, but know that if you're looking for the customer service of a small
bank, you shouldn’t stray too far from home.
It takes only a few basics to get up and running
with a bank account. Many big banks will even let you apply for an account
online. Otherwise, you can simply walk into a bank during business hours, and
you'll be walked right through the process. Just don't forget the
aforementioned things!
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About the author:
This article was
contributed by Mike Gordon, recent Business graduate and finance aficionado.
If you’re also a recent graduate looking for work, Mike suggests searching for finance
jobs with moneyjobs.com.
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