How do I Open my First Bank Account and what document do I need to open my first account? Managing your Money without a Bank Account can be overwhelming; as you might end up spending your cash unnecessarily. However, with a Bank Account, you can manage and track your spending, learn the good saving habit. It can also make life easier in difficult situations such as emergencies, accidents, and more. Therefore, to avoid future issues; you should consider opening an account. There are, however, things you need to be aware of before opening your First Bank Account. In this article, we shall be discussing everything you need to know before opening a Bank Account.
Why Open a Bank Account?
There are several reasons why you should open a Bank Account. Whether you are in school or you just got a new job; you certainly need a bank account. For newly employed staff, most companies require you have a bank account to enable them to pay your salary with ease. But as a student, you will need a bank account to receive cash from your parents especially when you’re studying in a different city entirely. One of the benefits or reasons why you should open a bank account is that you get access to financial security.
Unlike cash o prepaid cards, a Banks account is legally protected and this helps to protect you from loss. In addition, it helps you build a good financial relationship with your bank. You will be provided with guides ranging from how to use your credit cards, apply for loans. And when you need financial support for your business, your bank can support you. They also support funding retirement accounts, receiving paychecks, chasing a check, and a lot more. The importance of opening a Bank account is so many and cannot all be listed.
Guide on How to Open your First Bank Account
Before opening an account, there are cetin guides to follow and you need to be aware of these guidelines. In this section of the article, we have compiled a list of simple and easy guides to follow; whether you want to open a Checking or a Savings account. This guideline comes in handy and must be used
1. Determine your need
The first step in opening a first Bank account is determining your need. You can determine your need by taking your time to think about the right account to open; savings or checking. Also, consider easy access to cash, availability of ATMs and branches, can you access their services online. This First step is very vital as you might make the wrong choice if you don’t go through this stage. So make sure to determine your need before opening a bank account.
2. Find the Bank that Suits your need
After determining your need; you will need to find the bank that meets your needs. You can search for some of the best banks around your location or country and check out if they meet your needs. The best way to check if a bank is really good is by reading reviews from past and new customers online or via their official website. You can also consider using a Credit Union if you don’t find the bank that meets your needs.
What Kind of Account Do I need?
There are two main accounts you can sign up for. You can either open a Checking or a Savings account. Check out the outline below for a short review;
Checking Account
A Checking Account refers to a deposit account that enables you to deposit and withdraw funds on demand. You can make use of this account for your every day such as ATM withdrawals, Debit Cards, Account transfers, and more.
Savings Account
A Saving account can however be used to store funds that you want to set aside for difficult situations such as emergencies. Unlike Checking accounts, Savings accounts have a higher interest rate which means you can earn more money plus the money you have saved up using this account.
Documents needed to Open a First Bank Account
To create your first Bank account, there are certain documents you need to have as a citizen of the US. Below are some of the needed documents to successfully created or open a First Bank Account;
- A Government Issued ID Card
- Social Security Number SSN or Individual Identification Number ITIN
- Valid Passport
- Proof of your Home Address including your Utility Bills, Cell Phone Bills, and more
Once you have the above-listed Documents, you are ready to apply for your first account. Note that; you might be required to make an initial deposit depending on the bank you are applying for a First Bank Account.
