How to Open a Bank Account
1. Ensure You Are Eligible to Open a Bank Account
You need to have a valid identification card. This is to provide proof that you are over eighteen years and a citizen of the country. Some banks, however, can allow minors to have an account provided their parents sign the necessary registration forms. Also bring any document that contains your name and address. This may be your driving license or even a phone bill.
You need to have a social service number or taxpayer identification number that proves you are in government records.
2. Choosing a Bank
You will need to visit your preferred bank or if you have none, you will need to shop around to find one that suits your needs.There are many different banks available and they can be generally categorized into large chain banks and local banks.
Large chain banks are available in almost all cities and towns. Their advantage is that they are financially stable and have a trusted reputation. You will receive the same service no matter the branch.
Local banks are located in certain areas only and they tend to offer more personal one-on-one experience. Local banks tend to charge a smaller fee and invest in local community projects rather than national ones. Credit unions, which are non-profitable institutions, can be considered as local banks.
3. Choosing the Type of Account You Want
Banks have a way of selling their services by giving their products unique names, but the basic available accounts are checking accounts and savings accounts.
Checking accounts are simple accounts used to make day-to-day payments (like paying bills) and direct deposits. The amount in the account is determined by the amount you deposit. The user will get a checkbook and a debit card upon opening this account.
In savings accounts money is saved for long-term use. Money deposited in this accounts earns interests from the bank. You can withdraw money from the bank or at an ATM, but it can never be used to make payments directly.
4. Visit the Preferred Bank and Ask to Open an Account
Once you have identified your preferred bank and account, you need to visit the bank where you will be asked to fill in forms and upon completion, you will receive a confirmation. The advantage of visiting the bank is that you can get clarification of a number of issues including;
• Saving accounts interest rates
• Minimum balance that should be left in the account
• Monthly fee, if any, to maintain the account
• Transaction limit, if any
• If the account is insured under the Deposit Guarantee Scheme
Some banks offer online services, where you can open an account of the comfort of your home. It is, however, important to visit the bank's website to identify if the bank offers online services.
Upon completion, you will be provided with an account number and a four-digit PIN for your debit card.
5. Make an Initial Deposit
On completion of filling the necessary forms, most banks will require you to make an initial deposit to activate your account. This amount differs from bank to bank and the type of account opened, and therefore it is important to know the terms and conditions.
Once you've completed this step you're all set. Congratulations, you have opened a bank account and can now make deposits and withdrawals as per the banks’ terms and conditions.
