Having a separate account for a specific purpose can also reduce the likelihood of you spending the money rather than saving it. If you own a small business, your checking account is the daily and monthly lifeblood that allows you to pay your bills and employees.
The savings account can be used to manage your cash flow and even as collateral for a small business loan in the future.
3. Be prepared to pay a deposit
Prepare to deposit once you’ve decided on a bank and the type of account you want to open. Banks typically require between $25 and $100 to open a checking or savings account.
Consider how much money you want to deposit into the account. A checking account should have enough money to cover any bills that may come due.
Consider the amount you open a savings account with in relation to your goals. How much money could you save each month? How will you make your first deposit? To open a checking or savings account, most banks accept cash, a check from another institution, or a money order. If you open it with a check, the funds may need to clear before you can access them.
Keep minimum balances in mind when deciding how much to deposit at first. Failure to meet any minimum balance requirement may result in charges you want to avoid.
4. Provide Current Documentation
Bring Current Documentation. To open an account, all banks require identification (ID). They will almost certainly require specific forms of identification. Bring the necessary documents to avoid multiple trips to the bank.
Identification is required because the bank needs to verify your name, date of birth, and address. The following are some examples of common forms of identification:
- Individual Taxpayer Identification Number (ITIN) for those who do not qualify for a Social Security number, driver’s license, Social Security card, passport, or other government-issued ID.
- A bill bearing your name and address (such as a utility, phone, or water bill).
Please also include the Social Security number and date of birth for any beneficiaries you wish to add to the account.