What Do You Need to Get a Bank Account?
Opening a bank account is a fairly simple procedure if you have the proper documents in place, in addition to funds for the account, U.S. banks are required to collect certain identification information from their customers to prevent crimes such as money laundering and identity theft, according to the Federal Deposit Insurance Corp. (FDIC).
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Research Bank Accounts
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The FDIC recommends that individuals shop around for the best deal before opening up a new account. Banks differ significantly in terms of fees that they charge, minimum opening balances and so forth. The FDIC recommends accounts that require little money to start and involve little or no fees.
Identification Requirements
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As of Oct. 1, 2003, U.S. financial institutions are required to request from each customer a name, address, date of birth and a tax ID number, such as a Social Security number.
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Funding Requirement
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In addition to identification requirements, banks will require that you fund your new account. Usually, you will be able to fund your account with cash or a check. Some banks, such as Chase, allow you to use a debit or check card to fund your new account.
Benefits
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There are several benefits to owning a bank account, including enhanced safety of funds, the ability of your money to earn interest and the convenience of sending and receiving money. Money in the bank is safer than if it is kept at home. While the money is in a bank account, it generally earns interest. Owning a bank account also allows you to write checks or wire money to recipients and to receive money through direct deposit.
Precautions and Safety
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While there are several benefits to owning a bank account, holders must take certain precautions to protect their money. The FDIC advises that holders keep track of all transactions, including deposits and withdrawals. Review your bank statements and immediately report any discrepancies.
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References
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