May 28, 2021
Category: Money Management
How to Open a Checking Account
A checking account can be a great tool for managing your money. It allows you to deposit and withdraw funds. But opening a checking account isn’t as simple as walking into a bank and handing them your money. In addition to shopping around for the right financial service provider, there are certain steps you’ll need to take in order to apply and start using the account.
Below we discuss the steps you’ll need to take in order to open a checking account.
The first step in opening a checking account is to determine what exactly you’re looking for in a checking account. When selecting the right checking account option for your needs, you may consider traditional banks, online banks, credit unions, and alternative financial service providers. Here are a few factors to be mindful of in your provider:
Federal law requires you to provide several personal identification documents in order to open a checking account.
Once you’ve made your decision, it’s time to fill out an application. Some financial service providers allow you to apply online, while others ask you visit a physical location. The financial service provider will then review your information and may run a credit check to help determine whether or not you’re approved to open an account.
If you’re approved, you will sign a signature card that will be used to match your signature to whenever you write or deposit checks. You will also sign certain account documents. You may be able to provide this signature electronically if you’re applying for a checking account with an online-only bank.
After you’re approved for a checking account, the next step is to make your opening deposit. The required amount will vary depending on the financial service provider, but it’s usually a deposit of at least $25. Your checking account may also charge you fees if your deposit is less than the minimum balance requirement. Depending on the method in which you make your opening deposit, it may be several days before you have access to the funds for making purchases or withdrawals.
Once you’ve opened your checking account, it’s time to start using it! If your account has a debit card, it will usually arrive within 7-10 business days. Once it comes in the mail, you can follow the instructions on the card to activate it and come up with a unique PIN. You may also order checks linked to your checking account, which will usually arrive in around 10-12 business days.
A checking account can be an excellent way to store and use your funds instead of using cash. By taking the time to consider your options and selecting the financial service providers that works best for your needs, you’ll be one your way to a more secure, more convenient way to manage your money.