Financial Literacy & Banking

How to Open a Bank Account

Opening a bank account is an important step in managing your money. Follow these easy steps to get started.

1. Choose the Right Bank

Think about what you need. Nearby branches, online banking or special services may matter. Consider these factors:

• Location: Is there a branch near you?

• Fees: Are there monthly or ATM fees?

• Services: Does the bank offer online banking or a mobile app?

• Interest: Does the account earn interest? (For savings accounts)

2. Decide on the Type of Account

Do you want a checking or savings account? Here's the difference:

• Checking Account: For everyday transactions. Usually no or low fees.

• Savings Account: For storing money and earning interest. May have withdrawal limits.

3. Gather Necessary Documents

Have these ready:

• A government-issued ID (like a driver's license or passport)

• Your Social Security number

• Proof of address (if the bank requires it)

• Initial deposit (if the bank requires it)

4. Visit the Bank or Go Online

Choose how you want to open your account:

• In-Person: Visit a local branch. A bank employee will help you. (Some fintech banks like Chime don't have this option)

• Online: Go to the bank's website. Follow their instructions.

5. Fill Out the Application

Provide the needed information:

• Personal details (name, address, date of birth, ssn, id, etc.)

• Employment information (if required)

6. Make Your First Deposit (Not requied for some fintech banks)

Deposit the minimum amount the bank asks for.

8. Get Your Debit Card

Banks give you a debit card. This lets you access your money and make purchases. Some fintech banks will also give you a virtual debit card you can use immediately. 

9. Review Account Terms

Take time to understand fees, terms, and conditions. Know what services are free and which cost extra.

10. Start Banking

Once your account is open, you can start using it. Keep track of your spending and save when you can.

Opening a bank account is easy and opens up new money management options.

Difference between debit and credit cards

Debit cards don't affect your credit score, and credit cards affect your credit score and are typically used for borrowing money (With the exception of Chime credit builder cards, which affect your credit score, but are only meant for building credit as you can't borrow money with them).

What is a credit score?

A credit score is what is used to determine if you have a good or bad history with money, typically used for loans and other means of borrowing money. If you have a bad credit score it will be harder to borrow money (Including getting a credit card).

Credit vs debit

The reason a debit card is called a debit card and vise versa is because of credit vs debit. Credit is money you are borrowing and typically have to pay interest on, and debit is money you already have.

Banks

• Bank of America

• Chase

• Chime (fintech bank)

• Capital one