What Do You Need to Open a Bank Account?

Most people need to have a place where their money can be stored safely and securely. There are many credit unions and banks that allow people to get interest on any deposits they make through them. It is in these places where money can be stored safely. Many credit unions and banks will be fully insured which means people will not have to be concerned about losing their money. With that in mind, there are several things a person needs to do in order to open up a bank account. Certain information will also have to be provided to the bank or credit union a person decides to use.

Opening A Personal Account

Most people will have (and need) a personal bank account. In order to open one, identification of some sort will be required. When opening a bank account in person, suitable identification will often include a drivers license or passport. When taking this to the bank, you can expect them to make a photocopy of it and then store it for their records. The bank will also need to know your social security number, postal and residential address, date of birth, and full legal name.

Personal accounts can also be opened on the internet. Most of the time, all that is required is for a person to enter certain information. Then all that is left to do is simply click on the submit button and it will all be done electronically. All signatures and other personal information is kept safe and secure. If something else does need to be sent to the bank, then they will get in touch with the person about this. Be aware that there may be a few banks on the internet that will need a signature physically sent to them. This can be done through the mail or through fax. Identification may also have to be sent in the mail with the signature. Most of the time though, internet banks will not require you to do this.

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Worried about the convenience and speed of it all? Then there are some banks on the internet that can open new accounts straight away. These accounts will not require anything to be sent to the bank.

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Opening a savings or checking account? It’s important to understand that money will need to be immediately deposited into them. Always check to see if these account charge a fee before opening them. More often than not, cash or check’s can be transferred from another account to pay for this. An electronic transfer is also typically available. If an account is being opened online, then be sure to have the account and routing number on hand to transfer some money to the new account. Don’t forget to check the waiting time for the money to be made available in the new account. Sometimes money will not be available for approximately ten business days, although it’s usually available within 3-5 business days.

Opening a Business Account

Business accounts will require some extra information and identification. This extra information will also be required if opening an account online. These days, people can often scan and send information and identification through email or fax. On top of your personal identification, you will need an EIN to open a business account. A certificate of incorporation or a business license should also be given to the bank. If a person does not have specific identification, they may be able to provide another form of identification. Be sure to know what this is so that you know what to expect.

There are a few institutions who need a person to take in some Articles and Memorandums of Association. This might include Articles of Organization for your LLC, Doing Business As or  a Fictitious Business Name. The name of the business will have to be registered and filed before the account can be opened and accessed.

Everybody doing this should be aware of what is required at the bank they have chosen since all banks will be different. The bank may also ask other questions to make sure the account will not be used for any fraudulent activities.

ChexSystems Checks and Credit Checks

Before a bank makes an account available, it is likely they will need to do some sort of credit check. Most banks are happy to accept identification and will leave it at that. However, some banks will go further than this. When it comes to credit unions, most people will have to meet and accept the field of membership terms and conditions.

Credit checks may also be done on a person’s history. Some people may have a bad credit history which will cause the bank or credit union to ask questions. If this is the case, they might not allow a new account to be opened. A ChexSystem check may also be done on a person who is opening a new account, the purpose of this is to screen future customers. This means that if a person has an overdrawn account or has had a check bounce, this will be reported to the bank. When a different bank sees this information, they will know what your history is like and how risky it would be for them if they allow you to open an account. If the bank discovers you in this system, there is a good chance they won’t allow you to open up a new account. These records will be kept within this system for approximately five years.

If you have poor credit, always be sure to know whether or not the bank you are looking to open up an account with does a credit check. Do this well in advance before opening an account. Also find out whether or not the Chexsystem is used by the bank if you have had quite a few checks bounce or have had a checking account closed in the past. You can even obtain your own copy of the report once every year.

Although it is not hard to open a new account, it is worth knowing what is required before doing so. Opening an account on the internet is easier than in person. This is because you already have what you need within arms reach. Always find out what is required in advance if you intend on going to the bank in person. This will allow you to have all the right information with you when you go.

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