Opening a savings bank account involves several steps, which are outlined below:
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Compare your options: Before opening a savings account, its important to choose the right bank for your needs. Key features to consider when making your choice include competitive annual percentage yield (APY), low or no minimum balance requirement, low or no monthly fee, accessibility of fee-free ATMs, and accessibility of branches.
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Gather required documents: Whether youre opening a savings account online or at a branch, you may need a few documents to prove your identity and fund the account. These documents may include a drivers license, government-issued ID, passport, social security number, most recent residential addresses, email address, and bank account number and routing number (needed to fund your account) .
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Choose a joint or individual account: Open an individual account if you want a savings account just for yourself. A joint account is an account owned with another person, such as your spouse or your child. If youre looking for a joint account, then you should open one. Joint accounts offer some benefits, such as the ability to share expenses and manage money together.
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Fund your account: Some savings accounts require a minimum deposit to open an account. Generally, only brick-and-mortar banks accept cash deposits, while most online savings accounts let you deposit checks or transfer funds from a linked bank account. Once youve funded your account, consider setting up a direct deposit and scheduling automatic transfers from checking to savings, which will help your balance grow over time without much conscious effort on your part.
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Submit your application: To open a savings account, you must submit an application. Depending on the bank or credit union, you may have the option to apply in person, by phone, via mail, or online. Once youve submitted your application, the bank will review your information and approve your account if everything checks out.
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Accept the terms and conditions: This is where the bank asks you to confirm that you read disclosure documentation describing fees, liabilities, and how account interest is calculated. Ideally, you have selected an account that earns high rates and has no or low monthly service charges. This is your chance to double-check...
