How to Open a Bank Account

Your financial goals and intentions for opening a bank account will determine what kind of account to open. The two most common include:

• Savings account: a place to deposit your money with the intent of saving it, not spending it right away. Your funds will earn interest while in this account with no monthly fees. There may be transaction fees for withdrawals on savings accounts.

• Chequing account: used to hold your spending money. Daily transactions like purchases, paying bills, or accessing an ATM are best done through a chequing account. Chequing accounts come with different monthly fees depending on the account type, and sometimes have transaction fees or minimum balance requirements. The money held in these accounts usually earn little-to-no interest, making a chequing account good for accessing spending money, but not great for saving.

Banking needs are unique to each individual, but there are some key features to consider when looking at institutions and their bank account offerings. When thinking about switching institutions or opening your first account, you can look for a few things:

Low fees and high-interest rates. When comparing options, be sure you understand what fees (if any) come with maintaining a bank account, and if there are extra fees or incentives for using online vs. in-person services. If you’re opening a savings account, you should choose a financial institution that offers competitive interest rates on savings accounts so you can grow your earnings.

Find out the institution’s reputation. Connect with friends and family, or individuals who share similar financial needs as you. Ask them about their experiences with the financial service providers you are considering. A simple search on the internet can also bring up helpful reviews to guide your decision.

Consider your technological capabilities and needs. If you prefer banking in-person, choosing a financial institution with brick-and-mortar locations that offers quality in-person and over-the-phone customer service is essential when opening an account. Individuals who desire more digital banking options should look into the digital offerings of an institution that will allow them to bank digitally from anywhere using a mobile app or computer.

Research branch and ATM locations. If you need to visit a banking branch, choose an institution that is a reasonable distance from your home. If you travel frequently or often need to withdraw cash you will want your bank account to be physically accessible with ATMs.

A bank account can be opened by meeting with an advisor. The account opening process is simple, and you’ll need to complete a few steps:

1. Fill out an application form. This will include personal information like your name and address.

2. Provide ID. Often institutions may ask for at least two forms of government-issued ID in order to verify your identity, name, address, and date of birth. These requirements may differ between banks. When opening a bank account online, you will likely be asked to upload digitally scanned copies of your ID.

Opening an account is easy, and there are many account types to suit your needs. Even young people under the age of 18 can begin managing their finances by opening an account, but generally they need a legal guardian’s permission to help them open a bank account. These are considered junior or youth accounts and they have certain benefits, such as low or no maintenance costs and fees.

If you have already opened a bank account, but are not currently satisfied with the services offered by your bank, you may want to consider switching financial institutions. There are a few common signs that it may be time to switch:

• High fees. If you find yourself frequently disappointed or shocked by hidden fees for basic services, consider looking into a new institution that can offer the same products for less.

• Customer service. Do you feel content with the customer service at your institution? If your bank does not provide you with adequate customer service, it can add to your financial stress, and this is a sign to switch.

If you are currently with a traditional bank and facing these issues, you may want to consider switching to a credit union. Many credit unions offer similar products and services like larger banks, while maintaining lower costs. This is due to the operational differences between banks and credit unions.

Traditional banking institutions are for-profit, and owned by shareholders. These banks may have higher fees or minimum account balance requirements. Customers of banks do not generally have a say in how the bank operates.

Alternatively, credit unions are member owned. This means that profits are returned to credit union members and the community. This is done through lower fees, higher interest rates, and participation in community initiatives. Individuals looking for support in growing their savings, small business, or investments should consider speaking to an advisor at a credit union like 1^st Choice.

If you currently have a bank account at one institution, but want to make the switch and open a new bank account, there are a few things you can do to make the process easier and more efficient:

1. Make a list of your direct deposits.You will need a list of individuals and organizations who send you payments. Examples include your employer, the government, savings plans, etc. You will need to notify these companies and organizations that your banking information is changing and provide them with your new account number.

2. Make a list of automatic payments. Create a list of the bills and subscriptions you pay on a regular basis. This is a good time to take note of the services you no longer use regularly.

3. Keep both accounts open for a short time. Once you open an account at your new institution, do not close your old account until you’ve confirmed all bills and deposits are being paid and received properly from the new account. Monitor your account statements for the first month or two to make sure you are not paying anything twice, and paying important bills on time.

4. Transfer all funds and close your old account. Once you have transferred all of your funds to the new account and your payments and deposits are in order, you can inform your old bank that you would like to close the account.

Having a bank account that serves your wants and needs is key for saving and using money. A bank account is a simple but fundamental tool for everyday life, providing easy access to your earnings and allowing you to use current financial technologies.

A practical bank account should be cost-effective, with low fees and higher interest rates that make having a bank account worthwhile. If your present financial institution isn’t meeting your needs, consider making a switch today by reaching out to an advisor.