Steps To Take To Apply for a Savings Account
There are a few ways you can open a savings account, depending on your bank’s policies. You may be able to open an account online, over the phone, or in person. The application process is similar across banks, so if you’ve opened a savings account before, the steps may be familiar to you.
Verify Your Identity
Banks are required to confirm your identity before allowing you to open an account. They may also check your identity periodically as long as your account is open. This means you’ll have to provide your name, date of birth, address, and identification number. If you’re a U.S. citizen, that’s a Social Security number. If you’re not a U.S. citizen, you may need to provide your taxpayer identification number, passport number and country, or other identification number. Banks also typically need you to provide a copy of your valid driver’s license, state ID, or passport. Some banks may also ask for a second form of identification, such as a copy of your Social Security card, birth certificate, or a recent bill with your name and current address. If you’re opening an account in person, you can call ahead or check online to see what documents and information your bank will need from you. That way, there won’t be any surprises when you get there.
Complete the Application
In addition to the information required to confirm your identity, the application form will typically require your contact information, such as your phone number and email address. You’ll then sign and date the application to confirm your information is correct and that you agree to the bank’s terms and conditions.
Make the Initial Deposit
Once you’ve completed the application, you can make the first deposit to your savings account. Many banks allow you to choose between making a mobile check deposit, a bank transfer, or depositing a check or cash in person. You may need to make a deposit shortly after opening your account, even if there’s no minimum deposit required. Some banks will close your account if you don’t make a deposit within a certain amount of time.
Opening an Account Online vs. In Person
Opening an account online or through a bank’s mobile app can be faster and more convenient than applying in person. Some banks allow you to do that without uploading any documents. Instead, you can provide your Social Security number and other information the bank can use to verify your identity. That said, if the online application isn’t user-friendly or requires you to upload multiple documents, you may prefer to apply in person. Another benefit of applying in person is that a bank employee can walk you through the process and answer your questions. However, if you visit a busy branch, the whole process may take longer. You may also be able to open an account over the phone.
How To Open a Joint Savings Account
A joint savings account allows two people to own a single account. Both individuals can make deposits and withdrawals and view account history. If you decide to open a joint savings account, you and the other person will both need to include your names on the application and provide proof of identification.
How To Open a Savings Account for a Child
State laws and company policies vary, but in general, it’s very hard for a child under age 18 to open an account without an adult. Most banks require anyone under age 18 to have a joint account with an adult. You’ll need to provide your personal information and identification, and your child will need to provide their birth certificate or Social Security card.
Choosing the Best Savings Account Option
Consider what your priorities are when deciding where to open a savings account. If your top priority is the APY, you may want to open an account with an online bank instead of a traditional brick-and-mortar bank. Online banks may have lower overhead, which can allow them to offer higher interest rates. But just because a bank offers a high interest rate for savings accounts doesn’t mean it’s the right choice for you. Check to see if there are any fees that may affect you. Those fees can effectively erase your interest earnings. A bank that offers a lower interest rate but has no minimum account balance requirements or fees may be a better fit for you. There are other factors to consider outside of interest rates and fees. If you frequently need to deposit cash, or if you’re not comfortable depositing checks using an app, consider a bank with branches near your work and home. Also consider features that you may want, such as an ATM card—some accounts provide those, while others don’t. You can also check out online reviews like The Balance’s top picks for savings accounts to see some of the available options. To determine which account is right for you, list the features most important to you and jot down how each bank measures up as you shop around.
