4. OPEN THE ACCOUNT
The time has come for you to open your account. Break out the champagne!
Ways to open an account
Before you sprint down to the bank of your choice, we'd like to inform you that you might not even need to step out of your house to open your account. Thanks to technology, there are several ways to open an account now.
- Over the phone: According to the bigger chain banks, people are increasingly picking up the phone to open a bank account. You might want to consider looking up the number to your bank and giving them a call instead of making the trip, especially if you're having a bad hair day. The process will take longer because you'll have to mail in your signature, but it is a fairly simple way to go.
- On the Internet: Many banks - especially the online banks - offer applications over the Internet. Simply call the bank to ask for their website, or look it up here. When you open an account online, you don't have to deal with a pesky teller trying to talk you into opening a certain type of account. You can also leisurely browse through all your options and take your time in deciding what you really want. There's no pressure, and you can always call the bank if you discover that you need some assistance. Ah, sweet solitude.
- In person: If the above two options reek of detachment to you, you can always head down to the bank and get some of that human contact you crave so badly. Another advantage of opening a bank account in person is that you can ask the teller all of your questions and get immediate answers (as opposed to waiting two business days to get an e-mail response). Because you can sign all the papers on the spot, the process of opening an account is also speedier in person.
Qualification and identification
Before picking up the phone, switching over to your bank's website, or physically heading over to your bank, make sure you qualify for a bank account by preparing some ID first.
- Proof of age: Sorry, kiddies, you've got to be at least 18 years of age to open a bank account. Fortunately, banks only care about legal age, not mental age.
- Proof of address: A phone bill, driver's license, or any other official document with your name and address will do.
- Proof that you are who you say you are: The bank will ask for your social security number or employer identification number to ensure that you exist, so have those digits handy.
In addition to these requirements, get out an ID with your picture, an ID with your signature, and anything else you've got that tells the bank you're legit (a passport is always nice). Have your mother handy, if necessary.
Questions to ask
The following questions MUST be answered before you give your money away. What if you forget to ask about time deadlines, and suddenly realize that you can't touch your money for three years? So always get the answers to the following:
- Is there a monthly fee for maintaining this account? If so, what is it?
- Is there a minimum balance that I must keep within this account? If so, what is it? And what sorts of fees apply if I go under that limit?
- What is the interest rate of my savings account?
- Is the account for which I'm applying FDIC insured? (You definitely want your account to be insured by the Federal Deposit Insurance Corporation. If your bank ever goes bankrupt and loses all your money, the FDIC's will pay you back down to the very last cent.)
- Is there a limit to the amount of transactions (deposits/withdrawals, check writing, ATM uses) I have per month? If so, how many do I get of each? What sorts of fees apply if I go over my limit?
- Where can I withdraw cash without paying any fees? What is the fee for using an ATM machine that doesn't belong to this bank?
In addition to these questions, don't be shy when it comes to asking for a clarification on anything that confuses you. You are dealing with your (allegedly) hard-earned money, after all, and the last thing you want to do is blow it all over a misunderstanding.
One final tip: find a nice person at the bank, get his/her name, and always ask for that person. It's easier to deal with a friendly face that knows you. Just make sure he/she isn't wearing a mask and holding a gun.
