Opening a checking account is a great way to start managing your finances and protecting your funds. It can be a great resource to help you pay bills and track your expenses if you maintain a budget.There are several requirements you’ll need to bring or submit to open a checking account.
The following checklist should help provide you with the information needed to open your account:
Required Documentation and Identification
In order to open any checking account, you must prove your identity to the financial institution offering the account, and provide documentation that verifies your identification.
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Identification: Depending on the bank and its individual policies, you will likely need to present a current picture ID or other type of valid photo identification. This could be a driver’s license, state ID, passport or military identification.
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Social Security Number: When opening any checking account, you must present a valid social security (SSN) or taxpayer identification (TIN) number.
Financial History and Record Keeping
Before you can open a checking account, the bank will likely examine your financial records.
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Credit and/or background checks: Depending on the bank and its policies, you may have to consent to a credit history check or related background check.
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Payment history: Financial institutions monitor and store each customer’s payment history.
Additional Information
Often, banks require additional information to open a checking account.
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Address: Most financial institutions will ask you to provide at least two addresses. This usually includes your current street address and mailing address.
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Phone number: You will likely be requested to submit your primary and/or alternate phone numbers.
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Previous banking relationship: If you may have had a previous banking relationship or shared ownership of a checking account, be prepared to provide details about that.
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Employment information: Banks sometimes need to verify your current employment information as part of the account-opening process.
Funding the Account
In general, you will have several different ways to fund your checking account.
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Direct deposits: Many financial institutions offer direct-deposit services, allowing your employer to electronically transfer money into your account on a regular basis.
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Checks: You can fund your account with check deposits.
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Cash: Some financial institutions may still accept cash deposits, but this is becoming less common.
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Electronic transfers: You may be able to fund your account electronically through services such as Paypal or with an electronic transfer of money from an existing checking account.
What to Look For When Choosing a Checking Account
Once you are ready to open your checking account, there are several things to consider before selecting the right bank or credit union for your financial needs.
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Fees: Compare the fees different banks charge for the same services.
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Interest rates: If you are interested in a high-yield account, compare interest rates.
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ATM locations: Make sure the bank has convenient locations you can access.
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Online account access: In today’s world, customers often enjoy the convenience of banking online. Make sure any bank you are considering provides an online banking platform.
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Customer service: Good customer service is important when selecting a bank. Ask your friends, family and coworkers about the customer service they have experienced with different banks.
Closing a Checking Account
When you’re ready to close a checking account, inform the bank in writing of your decision.
- Canceling all outstanding checks and debits linked to the account
- Making sure all outstanding transactions have cleared
- When you are closing an account, ask the bank how long it will take for the account to be officially closed
- Don’t forget to withdraw any cash deposits and transfer remaining funds to the desired bank
Opening a checking account is a great way to start taking control of your finances and keep your funds safe. Make sure you understand the features and fees associated with different checking accounts and select an appropriate institution that suits your financial needs.
