Info Tips News – What Do You Need to Make a Bank Account, Here’s All That You Need to Know. 76.2% of the population of the modern world has at least one bank account. In this online world, having a bank account is a necessity. What do you need to make a bank account is quite simple, but can delay the process if you don’t provide all the right documentation needed.
The first step of making a bank account is preparing your documentation. Then provide the fund to start an account. Afterward, just let the bank help you to do the rest. So, let’s start with the first step now.
The First Step: Preparation
Banks in general only have a few requirements for opening an account. Age is one of them, although a minor also can be listed in a joint account with a parent or guardian. This is because the identification is usually only issued for at least a person aged 18+.
1. Government-Issued Identification
The first important step of what do you need to make a bank account is valid identification with a photo issued by the government. The bank needs to verify that photo with your face to make it official.
The form of this identification can also be a driver’s license. But of course, you need to pass the driving test first. Yet another form of identification is a passport. Because all your data is also listed there.
2. Individual Taxpayer Identification Number or Social Security Card
Depending on the kind of account you choose to make, the bank sometimes asks for your Taxpayer Identification Number (TIN). Especially if the account is used for business or the amount is quite big, this TIN can be one of the requirements.
It is also related to the tax you need to pay for all the income from the interest. The US citizen usually asked for a Social Security Number to complete this requirement to connect the data for the IRS.
3. Proof of Address
Banks usually ask you to provide a physical address when opening an account. You could provide your recent monthly bills, such as utility bills, or credit card statements. Because that means you have a physical place to live.
If all the bills are paperless, just print a few billing statements as proof. Another option is a signed lease agreement. Anything that can prove a physical place where you live.
4. Additional Identification
This is usually for minors or any specific kind of account. Such as a birth certificate if the account is a joint account for the child and a parent. The bank will ask for this as proof of the relationship.
Similar to that is a student account. Usually, the bank will ask for the student ID and the parent’s ID as documentation. The account can be made in the child’s name, but the parent will be the joining partner.
A special case occurs when the person who wants to open an account is incapacitated. Such as elderly people, those who are ill, or any other special circumstances. The bank will ask you to have a Power of Attorney (POA) letter that authorized another person to manage the account.
5. The Fund
Another important part of what do you need to make a bank account is, of course, the fund. The amount needed to open an account may vary. Depending on the kind of account you choose and the minimum requirement the bank needs.
The minimum balance for every type of account is different. For school children’s accounts, it might be as small as $25. But for a normal checking account, it could be $100. Do check the requirements of every type of account to make sure.
Remember that the bank also requires you to maintain a certain minimum balance available in your account. This is related to any fees or to take advantage of some perks.
The Second Step: The Bank
Now you have already completed the preparation needed for what do you need to make a bank account. Then this is the time to go to the bank.
Luckily in today’s digital age, you don’t need to go in person to a bank to open an account. Banks nowadays have online banking services available to smooth the process for their customers. You just have to download the bank application and start opening an account online.
All the documentation just needed to be uploaded online, verification also will be done online, and the deposit can be transferred from another account. Just prepare the original documents at hand, because the bank might ask you to take a picture instead of a scan result.
Special case in opening a business checking account. You will be asked to provide your business documents. Since the amount involved could be quite big and the requirements are more complicated, it is advisable to go to the bank in person.
There will be some forms to fill out and sign, documents that need to be verified, and maybe many other details that need to be handled personally.
Types of Accounts
Banks can give you a lot of options in account types. They provide many different alternatives as a service to their diverse customers. Better check your requirements for an account that will suit your needs.
1. Checking Account
This type of account will be your source of daily business. Such as paying your bills, writing checks, or making some debit purchases. This account is active, either for deposits or withdrawals. Usually, the interest is quite small, but there are perks such as no monthly fees.
A checking account is also completed with an ATM Card that can be used for withdrawing money from an ATM or as a debit card in online payment for many kinds of purchases.
2. Saving Account
A bit different from the checking account, this account is for saving your money. It can be your emergency fund or just put away money for specific goals or rainy days. Banks usually give a higher interest rate for this account, but please check your bank to make sure.
Some Useful Tips
There are plenty of banks available for you. Either physical brick-and-mortar banks or online banks. Here are some tips for you to consider:
- Online banks usually take lower fees but higher interest rates.
- Physical banks typically have more fees and lower rates. But they balanced it with a variety of services and in-person assistance.
- Choosing a bank that has a good reputation and is successful will be more advantageous due to its wide services (many ATMs, safe deposit boxes, international transfers, etc.). Moreover, they can provide safety to the fund you have.
- If you are opening an account in a physical bank, try to choose the most convenient or the nearest branch from your residence or office. It will be easier in the long run if you need fast assistance.
- Close your old account, if needed. Especially if it is connected to bills payment. If you don’t use that old account anymore, you better close it before you need to pay any unnecessary fees.
Now you already know what do you need to make a bank account. It is not complicated, as long as you have all the requirements complete and at hand.
