5 Ways to Open a Bank Account

1. Choose a Bank

You may think choosing a bank sounds easy enough, but there are several things for you to consider. Location and services offered are two of the most important: You may want a bank located close to your house, or you may be willing to drive further to a bank that has national/international locations available for when you travel. Some banks offer special promotions to gain your business, such as a vacation contest, a free backpack, cash and other prizes. Many banks offer online access, allowing you to pay bills and track your account from your computer 24 hours a day. You may need a bank with the ability to transfer funds internationally.

2. Pick a Bank Account Plan

When you go to the bank to open an account, you will be presented with a number of checking-account options. Choose the option that fits your spending habits, taking into account such elements as ATM and debit cards, a check-processing capacity of 25, 50 or more checks each month, joint accounts, and more. Some checking plans require a minimum initial deposit to open the account.

Savings accounts provide a higher interest rate than checking accounts, but the funds aren't as readily available. When you choose a savings-account plan, note the interest rates offered by the bank(s) and how accessible the funds are. Some banks offer a bankcard that allows you to withdraw limited amounts of cash from the savings account when needed. If you have trouble leaving your money in a savings account, try a 30-, 60- or 90-day-notice account to stop impulse spending.

3. Provide Proof of Identification

Banks must protect themselves by verifying the citizenship of each person who wants toopen an account. You will need to bring several pieces of identification with you, such as a driver's license, Social Security card and/or passport. Some banks require a utility bill to verify your address. You will provide your legal name, address and other personal information on the application.

4. Agree to the Rules

When setting up your new bank account, you will be provided with a list of its governing rules. Before you sign anything, you should read through that list. At the very least, look for specific rules you need to follow regarding overdraft penalties, availability of funds, debit-card fees, check fees and online usage.

5. Deposit Money to Start the Account

To open a checking account, you need to deposit a minimum amount of money. The amount of money you are required to deposit varies according to the type of account, and from one bank to another. You can bring cash, a check from another bank, a paycheck or a check from any other party.