It’s easy to open a savings account these days since banks do much operating online. Some banks operate entirely online, and these tend to offer better terms to customers, including higher APY %s. Even if you’ve never opened one before, it’s pretty straightforward knowing how to open a new savings account.
The first step is selecting a bank and reading over their application process. Some online banks have minimum deposit requirements, and some do not. Make sure you’re choosing a bank or credit union that offers a decent APY% for the amount of money you plan on putting into the account. Keep in mind that you may or may not be required to make additional deposits every month.
Another essential thing is that the financial institution you open a savings account with offers federally insured backing so that the FDIC will always protect your money, no matter what happens. This protection is perhaps the most important thing to understand when learning how to open a new savings account. If it’s a bank, the FDIC should back it. If it’s a credit union, the NCUA should insure it.
As with signing up for anything financially related, you’ll need to gather up documents and submit some info. You’ll probably need to provide your address, social security number, or tax ID number, as well as a government-issued photo ID. If you’re applying online, upload a copy of the ID – make sure all of the details are displayed clearly.
You’ll need to provide contact details as well. In addition to your address, you’ll probably need to provide a phone number and email. How long it takes for all of this information to be verified depends on the bank.
How to Open a New Savings Account and Fund It Quickly
A big part of knowing how to open a new savings account is funding it. If it’s an online account, you’ll need to transfer the funds by linking the account with a checking account you already have with that particular bank or providing the account and routing numbers from another bank account. Some institutions might still accept checks or allow you to schedule a wire transfer.
Pay close attention to any fees or penalties the bank may charge you, whether it’s for maintenance purposes or making too many withdrawals or transactions. For example, avoid any bank that charges maintenance fees. As for the transactions and withdrawals, there is usually a limit to how many you can make. Make sure you understand this clearly before opening the account.
Learn more about how to open a new savings account with CIT Bank. It’s an excellent place to get started. There are no maintenance fees, the APY % is decent and consistently above average, and customer service is good.