Opening a bank account is generally a straightforward process, but the more you’re prepared up front with the right documentation, then the quicker and smoother the process goes. You’ll need your personal information, your Social Security number, and a government-issued ID to start with, but there are a few other details you should be aware of. Many of these steps are needed when opening your bank account in-person here at PNB of Kewanee, but also at other financial institutions.
What You Need to Open a Bank Account
Whether you’re opening a new checking or savings account, you can expect the financial institution to ask you for the following documentation and information:
- A government-issued photo identification. This can include your driver’s license, passport, military ID, or a State ID card issued by your state’s Department of Motor Vehicles office.
- Basic information. The financial institution will need your Social Security number or Taxpayer Identification Number, birthdate, address, and phone number.
- Initial deposit. Some banks may require an initial funding deposit, while others do not. If the bank does require it, then you’ll need to know what the accepted forms of payment are for the setup.
- Proof of address: You may be asked to provide a document showing proof of your current residence, such as a utility bill, bank statement, or credit card statement.
If you’re opening a joint account, then the person you’re opening the account with will also need to provide the same information.
If you’re under the age of 16, then you’ll likely have to include a co-owner on the account, such as your parents or legal guardian. The bank will also require their signatures.
How Do I Choose Where To Open a Bank Account?
With so many choices among banks and credit unions, it can make it difficult to know which one works best for your lifestyle and financial needs.
You can start by looking at financial institutions offering the type of account you want, such as checking or savings, but keep in mind while you may only need a checking or savings account now, it’s possible you may need other financial products, such as certificates of deposits (CDs) or a money market account, which may help with your future financial goals.
Fees are another important factor when deciding, since many banks charge monthly fees, overdraft, ATM usage, and more. These fees can add up to a costly amount over the course of a year, which may sway your decision. Look for introductory basic accounts, such as our Peoples e-Power (PeP) personal checking account which has no monthly service charges and free checks. It’s an example of a way to get your foot in the door and meet your basic needs until you’re ready to level up your account options.
You may also want to take into consideration the location of the physical branches and how convenient they are for you. PNB of Kewanee has nine branch locations across north central Illinois in addition to online banking. Digital tools are equally important, such as mobile deposit, online access, or user-friendly apps, which can make banking easier when you’re on the go or can’t go to the branch in-person.
Lastly, make sure you carefully read through the terms and conditions for the account, which spells out any charges. It will also confirm if your deposits are federally insured by the National Credit Union Administration for credit unions or the Federal Deposit Insurance Corp for banks.
Do I Need a Checking or a Savings Account?
If you’re unsure whether you need a checking or savings account to start with, it’s essential you consider the main reason why you need an account.
Checking Account
A checking account is typically used for paying bills, writing checks to various businesses or people, and making debit card purchases. If this fits your needs then look for accounts with no or low fees, no monthly charges, and convenient access to ATMs.
Saving Account
Savings accounts are ideal for building emergency funds or putting aside money for specific financial goals, such as saving for a down payment or new car. Select a savings account with the highest interest rate possible and the lowest amount of fees, so you can maximize your savings over time.
FAQs
Can I open a bank account without a social security number?
Yes, you can open a checking or savings account without a Social Security number. The bank or credit union will need another type of ID number, such as an Individual Taxpayer Identification Number (ITIN) or may accept a passport number, alien identification card number, and other forms of identification.
How much money do I need to open a bank account?
Not all banks or credit unions require an initial deposit, but if they do, you can expect it to be around $100.