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Key takeaways
- There’s a lot of value in having a checking account beyond managing your money.
- Today, there are multiple checking account options available to fit every lifestyle, so shop around. And be sure to do your research to learn what fees are associated with each account.
- To open an account, you’ll need a government-issued ID and Social Security number.
Opening a checking account doesn’t have to be stressful or complicated. And there’s a lot of value in these types of accounts beyond helping you manage your money. Read on to find out more about how to get one open, selecting how to choose the right type for your unique life, what’s needed to open a checking account and what the benefits are. Before you know it, you’ll be making the money moves you’ve always wanted to when it comes to your financial health. Below are five commonly asked questions banks are asked during the process of either switching to a new bank or opening a checking account for the first time.
Q. What are the benefits to opening a checking account?
A. With a checking account, you can often be paid two days early with no additional cost to you1. It’s a safe, FDIC-insured place to keep your money, and accessing it takes merely a few fingertip taps. Having a checking account also helps with organization, as well as money management.
Q. Can I open a checking account online?
A. You bet! It’s the rare financial institution these days that doesn’t offer the opportunity to open an account online. You can also open an account from your smartphone. While walking into a physical branch is also an option, some people prefer to do their banking online, including opening an initial account. You’ll want to have the required documents (further outlined below), as well as any funds you plan on depositing to open the account. Not sure where to look? Don’t worry, most banks have a “get started,” or “open an account” link or button directing you to a page where you can open your account. Once approved, you can fund your account by transferring money from another bank, or by sending money virtually from a guardian’s account to yours.
Q. What do I need to open a checking account?
A. It’s all about the details. Whether you apply for a bank account online or in person, you’ll need a government-issued ID and personal details, such as your Social Security number on hand. The reason why banks ask for a Social Security number is because main account types bear interest, which is a form of taxable income. Some banks will accept a Taxpayer Identification Number (TIN) instead. Overall, there are five things you need to open an account:
- A valid, government-issued photo ID, such as a driver’s license or a passport. Nondrivers can get a state ID card at the Department of Motor Vehicles office.
- Other basic information, such as your birthdate, Social Security, TIN, or phone number.
- An initial deposit is required by some banks, while others will let you open an account without a minimum deposit.
- Identification details for other applicants if you’re opening a joint account. Because the account will be owned by multiple people, the bank will want all owners’ identification and personal information.
- A co-owner if you’re not yet 18. Ask a parent or legal guardian to sign legal documents with the bank.
Q. Do I need to have good credit to open a checking account?
A. While banks may screen your banking history, they won’t check your credit score when you open a checking account. A bank should not be checking your credit score in order to open an account. They will, however, pull your checking and savings account history similar to the ways in which credit card screenings work — so that they can learn about your financial past.
Q. What should I consider before opening a checking account?
A. Let’s determine what type of checking account is right for your lifestyle. Whether you’re a student, military veteran, or starting your own business, there are a myriad of accounts that are personalized and tailored to fit a variety of lifestyles or interests. Your needs may evolve over time, such as opening a joint-checking account with another person such as a spouse or partner. Other than the name of the type of account that best suits your needs, here are other factors to consider before opening the account.
Account fees: While most banks offer ways to avoid monthly maintenance fees, not all do, so be sure to do your research. Waving maintenance fees sometimes comes with a specific minimum balance requirement. Other banks offer to waive maintenance fees if you elect for direct deposit of your paycheck, but again, be sure to check this when enrolling. Other types of fees associated with a checking account include overdraft fees, paper statement fees (if you don’t select e-statements) foreign transaction fees, or ATM/ITM withdrawal fees2. Keep in mind that you should shop around to find the best interest rate, while always keeping in mind reading the fine print and reading about any fee structures on the bank’s site.
Perks: Some banks offer convenient perks to the account holder, that make banking both more efficient for a busy lifestyle, and easier. Some examples are apps, or a debit card, which links to a digital wallet3, such as Apple Pay or Zelle®4, and discounts on area concerts or venues.
Budget: Mobile banking apps often include useful tools for balancing your budget. You can remember the 50/30/20 rule of needs, wants and savings, and use your checking account to maintain order including automatic bill pay, etc. Your account will help you decide not only on whether automatic bill pay, or direct deposit are right for you, but also whether you want to keep a consistent account balance or are okay with fluctuation throughout the month or year.
Ready to tackle your financial goals?
Whether it’s saving for a future goal, getting savvy about budgeting, receiving notifications to balance your budget, or automating payments to simplify your bills, there’s a checking account out there that is just right for you. Learn more aboutCitizens checking accounts.
