bank accounts

All information about bank accounts

¿Do you want information about bank accounts? There are many options and you are the only one who value them. In this article, Alfredo Barandiarán will tell us what an account bank is, what it is for and which are the best. Welcome!

¿What is a bank account?

A bank account is a contract by which a person deposits their money and the bank is obliged to keep it. Bank account characterized because they are very easy to open. Later, we will see all the requeriments.

Different types of bank accounts

We have been able to account for up 8 different types of bank accounts in the United States. Here you have the complete list:

  • Checking accounts: These accounts allow you to write checks or make debit card purchases to access your funds.
  • Savings accounts: These accounts allow you to save money and earn interest on your balance.
  • Money market accounts: These accounts offer higher interest rates than savings accounts and may also allow you to write checks, but typically have higher minimum balance requirements.
  • Certificates of deposit (CDs): These accounts offer fixed term deposits with higher interest rates, but you cannot access your funds until the CD matures.
  • Individual retirement accounts (IRAs): These accounts allow you to save for retirement with tax advantages.
  • 401(k) accounts: These are employer-sponsored retirement savings plans.
  • Business accounts: These accounts are designed for the financial needs of businesses, and may include checking and savings accounts, as well as merchant services and loans.
  • Student accounts: These accounts are specifically designed for students and may offer features such as no monthly fees and lower minimum balance requirements.

Functions

A bank account can serve dozens of functions but these are the main ones:

  1. Holding and managing money: Bank accounts allow you to deposit and withdraw money, as well as track your spending and balance.
  2. Earning interest: Some bank accounts, such as savings accounts and certificates of deposit (CDs), earn interest on the money you deposit.
  3. Making payments: You can use bank accounts to pay bills, either by writing checks or setting up automatic payments.
  4. Receiving funds: You can have your paycheck or other income directly deposited into your bank account.
  5. Transferring money: Bank accounts allow you to easily transfer money to other accounts, either at the same bank or at a different financial institution.
  6. Providing financial stability: Bank accounts can provide a secure place to keep your money and help you manage your finances.
  7. Offering convenience: Bank accounts offer a convenient way to access and manage your money, with features such as debit cards, mobile banking, and online banking.

Steps to follow for open a bank account

To open a new bank account you need to follow the following steps:

  1. Choose a bank or credit union: Research different financial institutions and compare their fees, services, and location to find the best option for you.
  2. Gather necessary documents: Most banks will require identification such as a driver’s license or passport, as well as proof of your Social Security number or taxpayer identification number.
  3. Complete the application process: You can usually apply online, in person at a bank branch, or over the phone. The bank will review your application and may request additional information or documents.
  4. Fund your account: Once your account is approved, you will need to make an initial deposit to fund your account. This can usually be done by transferring money from another account or by making a cash deposit at a bank branch.
  5. Activate your account: Follow the bank’s instructions to activate your account and receive your debit card and checkbook (if applicable).
  6. Set up any additional features: You may want to set up automatic payments, direct deposit, or online banking to make it easier to manage your account.
  7. Review and understand the terms and conditions: It’s important to understand any fees or restrictions associated with your account, as well as your rights and responsibilities as a account holder.

Requirements

These are the requirementes you must meet to open a bank accounts:

  1. Proof of identification: You will need to provide a valid form of identification, such as a driver’s license, passport, or state-issued identification card.
  2. Proof of Social Security number or taxpayer identification number: Most banks will require you to provide your Social Security number or a taxpayer identification number in order to open an account.
  3. Initial deposit: Most banks will require you to make an initial deposit to fund your account when you open it. The amount of the deposit may vary depending on the bank and the type of account you are opening.
  4. Meeting minimum balance requirements: Some bank accounts have minimum balance requirements that must be maintained in order to avoid fees.
  5. Providing personal and financial information: You may be required to provide information such as your name, address, employment status, and income in order to open an account.
  6. Completing the application process: You will need to complete an application and provide any additional documents or information requested by the bank.

Advice

Note that the specific requirements for opening a bank account may vary depending on the bank and the type of account you are opening. It’s a good idea to research and compare different banks to find the one that best meets your needs and has the requirements that you can meet.

Conclusions

Opening a bank account is very simple but you must be well informed of the conditions offered by each bank.

Best banks to open a checking account

Here is a list of the best banks to open a checking account in the United States:

Logo Chase
  • It is very easy to avoid monthly commissions
  • Welcome bonus of 200 dollars fulfilling conditions
  • More than 16,000 ATMs in the United States
  • $25 minimum deposit
  • Very low interest rates
Chase Total Checking review
Bank of America logo
  • It is very easy to avoid monthly commissions
  • More than 16,000 ATMs in the United States
  • $100 minimum deposit
  • No welcome bonus
  • High interest rates if you have a lot of savings
Bank of America checking accounts
Wells Fargo logo
  • It is very easy to avoid monthly commissions
  • Nearly 12,000 ATMs
  • $25 minimum deposit
  • Welcome bonus of 300 dollars fulfilling conditions
  • High interest rates on CDs
Wells Fargo Everyday Checking review
Logo Sofi
  • No fees and no requirements
  • Nearly 60,000 ATMs
  • Welcome bonus of 250 dollars fulfilling conditions
  • High interest rates on CDs
Sofi checking account review
Charles-Schwab-Logo
  • No fees no direct deposits
  • Fee-free withdrawals from ATMs around the world
  • Without minimum deposit
  • No welcome bonus
  • High interest rates on CDs
Charles Schwab checking account review
Chime checking account Logo
  • No fees no direct deposits
  • More than 60,000 commission-free ATMs
  • Without minimum deposit
  • No welcome bonus
  • High interest rates on Savings
Chime checking account review
Ally logo
  • No fees no direct deposits
  • More than 50,000 commission-free ATMs
  • Without minimum deposit
  • No welcome bonus
  • High interest rates on CDs and Savings
Ally checking account review
Citibank-logo
  • Commissions of $10 if you do not meet requirements
  • No fees at Citibank ATMs
  • Without minimum deposit
  • No welcome bonus
  • High interest rates on CDs
Citibank checking accounts

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Updated the day 6 June, 2023 by Alfredo Barandiarán

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