You are currently viewing What Documents do You Need to Open a Bank Account?

What Documents do You Need to Open a Bank Account?

What Documents do You Need to Open a Bank Account?

If you are at that stage where you need to open a bank account, there are some crucial bits of information you need to know and steps you need to follow. For example, what do you need to know before you open a banking account?

Shop For A Bank

Numerous options can be considered based on your specific taste and preference. For example, there are online banks, physical banks, credit unions, and more to choose from. If you are a traveler, you need a bank you can access from anywhere.

There are many national banks you can choose from, others from your state and some even from your local areas. Scour the internet or walk into banking halls until you find something you like.

Choose The Account You Want

There are two most common types of bank accounts; a checking and a savings account.

You can choose a checking account if;

  • You need an account to pay your bills from
  • You need an account that you can easily write checks from
  • You require an account that you can make debit card purchases from

When looking for a checking account, there are some important aspects to consider. Most of the common ones include;

  • A low or no monthly fee
  • Low or no overdraft fees
  • They are affordable. If you are going to use the account frequently, it needs to have minimum fees.

You can choose a savings account if you are looking to build a rainy day fund or when you are saving up for a specific goal. For these accounts, you need to look for a bank that offers a high-interest rate so that at the end of the goal, you can withdraw it with some interest. It should ideally also have little to no monthly fee.

Check The Requirements

Whether you are opening up an online account or a physical one in a bank account, here are some of the most important papers you need.

A valid identification document; This could either be your driver’s license or your passport. The important bit is that it should have your government issues photo ID.

Personal contact information such as your birthdate, social security number, unique tax identification number, email address, physical address, and phone number.

If your bank requires the next of kin, you might be required to produce their documents. For example, if you are below 18 years of age, you might need a parent or guardian’s signature on some documents.

Some banks might require an initial deposit, so you might want to have that at hand. The amount required should be on the websites or brochures where they give information on opening an account on the specific bank.

What About Your Old Account?

If you switch your account from an old one to a new one, you can shut down the old one once you open up the new one. Then, schedule any automatic transactions like monthly payments to avoid missing out and garnering penalties. Visit SoFi Invest to clear up any doubts you may have about banking.

CCIE DC Exam Strategy

What Documents do You Need to Open a Bank Account?

Source link