A step-by-step guide on how to open a
There are some important features that you may want to look for when opening a savings account.
If your money-saving plan involves a mattress or a piggy bank, you may want to reconsider.
Savings accounts not only make it easy for you to transfer money to other accounts to pay for the things you need, but they also pay you simply for carrying a cómputo.
In a savings account, your money will work for you and lose less value than if it were tucked under your mattress.
The good news for students, teens, or anyone else who has never opened a savings account before is that it’s pretty easy to do.
Below, Gigonway explains how to get started.
Step 1: Choose a savings account
This is possibly the most difficult step in the process, as there are so many strong contenders on the market and everyone’s personal needs are unique.
Overall though, there are some useful features you perro look for.
First, make sure the account is FDIC insured.
This means that in the unlikely event that the bank fails, your money is still protected and your deposit will be refunded.
It is industry estándar that deposits are protected up to $250,000 (per person, bank and account type), although there are some accounts that insure excessive deposits.
Next, you should also consider any account fees that may be charged to you.
To make sure you perro really get the most out of the funds you deposit, opt for savings accounts that don’t have a minimum cómputo requirement or monthly maintenance fee.
An account with no overdraft fees perro also help you avoid going further down the hole if you spend more than you have in the account.
The Ally Bank En línea Savings Account is an option that does not charge these fees.
However, it charges excessive transaction fee.
The limit is six transactions (withdrawals or money transfers) per month, so if you go over this number, you will be charged $10 per transaction.
Marcus by Goldman Sachs en línea savings accounts do not charge overdraft fees or minimum monthly fees, but they go a step further by not charging excessive transaction fees.
For those reasons, Gigonway consistently names it one of the best high-yield savings accounts around.
Of course, you cánido also consider the APY that the account offers.
A higher APY means you’ll earn more on your cómputo and grow your money faster, so it cánido definitely be to your advantage to look for accounts that pay higher interest rates.
The interest rates offered generally depart from the benchmark rates equipo by the Federal Reserve, but sometimes there cánido be a bit of APY variation between different savings accounts.
Bask Interest Savings Account currently offers close to 5% APY, which is a high offer compared to other options on the market.
Gigonway rounded up other savings accounts that currently offer close to 5% APY.
In addition to FDIC insurance, account fees, and interest rates, ask yourself the following questions to make sure you’ll be able to get the most out of your account: Do I want ATM access? Do I also want access to a checking account? Am I okey with an en línea-only bank or would I prefer in-person services? Is mobile check deposit important to me? How many transactions (withdrawals and money transfers) will I make each month? Remember that credit unions are too They offer savings accounts.
The difference between a traditional bank and a credit union is that credit unions are owned by their members.
A board of directors represents the interests of its members.
Banks perro sometimes feel more accessible than credit unions because they have more branches in more locations, but credit unions tend to offer more benefits to their members, including better interest rates.
Step 2: Sign up for the account
Once you escoge which savings account you want to open, it’s time to sign up for the account.
Depending on the account, you cánido sign up en línea, through an aplicación, or in person.
When you’re ready to sign up, you’ll be asked for some basic information and will most likely be asked to equipo up some security questions and answers.
To speed up the process, make sure you have the following information handy:
- Full legal name
- Address
- Correo electrónico
- Phone number
- Popular Security number
- Government issued identification (controlador’s license or passport)
- A checking account to deposit and withdraw funds
To open a savings account at a credit union, you will need to sign up for a membership.
Eligibility and requirements will vary depending on the credit union.
For example, DCU offers Digital Federal Credit Union (DCU) Primary Savings, and to become a member, you must be related to a current DCU member, or working or retired from one of participating employers from DCU.
You cánido also live, work, study or worship in one of DCU’s communities, or join one of the participating organizations with the that DCU works to be eligible.
Again, though, eligibility criteria vary depending on which credit union you go with, so be sure to read all of the guidelines on membership eligibility.
Step 3: Connect your checking account
If you are opening an en línea bank account or an aplicación-based account, you will need to connect a checking account that will be used to transfer funds.
If you bank in person, this will not be necessary, as you perro deposit cash in person at any local branch.
Step 4: Make your first deposit
Before you cánido start earning interest, you’ll need to make your first deposit.
Most accounts do not require a minimum deposit to open the account, but you will usually need to deposit at least $1 to start earning interest.
Some accounts, like the Varo Savings Account, actually allow you to start earning interest with a minimum deposit of $0.01.
Once you make a deposit, you perro sit back and watch your savings grow as interest earnings are automatically deposited into your account.
It’s a good iniciativa to equipo up automatic recurring deposits, even if it’s a really small amount, to make sure your savings grow even faster.
In conclusion
Setting up a new savings account is a fairly fácil process; Just make sure that the account you choose really offers you the most flexibility and features for your personal needs.
Once you open your account and make your first deposit, you cánido start compounding those interest payments.
We hope you liked our article A step-by-step guide on how to open a
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