8 Questions to Ask before Opening a Bank or Credit Union Account | America Saves (2024)

FAQs

What questions should you ask before opening a bank account? ›

Is there a minimum balance requirement to avoid a monthly fee? If so what is it? How soon is my money available after I deposit it? (Both banks and credit unions can put holds on large and sometimes even small deposits). Do I need to open a checking account or some other account to have a savings account?

In addition to documents that verify your identity, age, or address, you may also need to provide a minimum initial deposit when opening a bank account. A minimum initial deposit is an amount of money required by the bank upfront when opening a checking account, savings account, or certificate of deposit.

Credit unions offer competitive interest rates on checking and savings accounts. This allows you to grow your money faster. Unlike banks trying to maximize margins, credit unions use deposits to fuel local borrowing and investments. This community-first strategy allows them to share higher returns with their members.

What is the main downside to opening an account at a credit union? ›

Limited accessibility. Credit unions tend to have fewer branches than traditional banks. A credit union may not be close to where you live or work, which could be a problem unless your credit union is part of a shared branch network and/or a large ATM network such as Allpoint or MoneyPass.

Credit unions tend to offer lower rates and fees as well as more personalized customer service. However, banks may offer more variety in loans and other financial products and may have larger networks that can make banking more convenient.

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All banks require proof of identification (ID) to open an account. They will likely require specific forms of ID. Save yourself the headache of multiple trips to the bank and make sure you bring the essential documents. Required ID is important, because the bank needs to verify your name, date of birth, and address.

In conclusion, there are many factors to consider when choosing a bank. Be sure to compare interest rates, fees, customer service, convenience, security, account options, online and mobile banking, financial health, additional services, and reputation to find the bank that is the best fit for your needs.

Bank accounts

To open an account, all you need is your ID book and proof of residence.