Opening Bank Account

It is important for every individual to manage their money well. For that one must have a bank account. Opening a bank account is a simple task. You’ll need few documents for the same like proof of your residence; social security number; two IDs – one with a photo like passport or driver’s license and the other one may not have a photo attached; your employment details and one or two references. Debit card is normally issued when you open the bank account. Checkbook may also be given if you request for the same.

There are different kinds of banking accounts like checking account and savings account. The checking account can be used for everyday use which can be conveniently used for deposits as well as withdrawals on a frequent basis. Normally it doesn’t give you any interest. For a checking account you are expected to maintain a minimum balance every month which generally varies from bank to bank in order to avoid the monthly fee.

Savings accounts on the other hand are normally used for savings. It is beneficial when you plan to keep your money in the bank for a longer duration. There is a restriction on the number of withdrawals in the saving account and hence it cannot be easily used for regular transactions like checking account. You’ll be given a monthly interest on the amount deposited with the bank which ranges between 0.5% to 2%. It is possible to link your savings account and checking account in case you have both of them in the same bank. If you have a link between your both accounts, you’ll gain protection against overdraft. The bank will ensure that your checking account is having the required amount which is adjusted from your savings account. For this service the bank will charge a minimum of $2-3.