What do You need to Open a Bank Account?

In this modern day and age, when everything is going digital, including the currency that we use, it has become imperative for every one of us to own a bank account. Whether you talk about the ease of making online purchases or receiving funds from somebody, a bank account makes your life easier.

Opening a bank account is a fairly simple process which does not demand a lot from you. All you need is a few documents and you can have your personal bank account. Wondering what documents you need for it?

What Do You Need To Open A Bank Account?

The primary requirement for opening a checking or personal savings account in your own name in the US, is that the applicant has to be at least 18 years old. Besides this, you also need the following:

#1. Photo Identification

The first thing that you need for opening a bank account in the US is a government-issued ID. This could be your driver’s license or passport. While most banks only require one photo identification document, some may also ask for a secondary once which could be your credit card or utility bill.

(Image Courtesy: Keywords Suggest)

#2. Social Security Number

Despite the increasing cases of identity theft these days, most banks still ask for your Social Security Number before you can open your account. In case you are hesitant of providing your Social Security Number, talk to your bank about using the Taxpayer Identification Number issued by the Internal Revenue Services or IRS instead. You may be able to do so.

(Image Courtesy: Kentech)

#3. Other Personal Information

Apart from the aforementioned documents, you also need to provide additional information to your bank at the time of opening a bank account, such as your date of birth, residence address and phone number. In some cases, the bank might also require your valid email address; however, it is not mandatory every time.

(Image Courtesy: The Hackers News)

#4. Initial Deposit

Once you have been found eligible for opening a bank account, you are also required to put in a small amount to money into your bank account which will act as your initial deposit. If and how much you are required to pay as initial deposit depends on the bank in which you are opening an account. The fund can be transferred to this new account by the means of money order, check and debit card.

Also, you do not need to physically visit a bank to open an account and you can complete the entire process through your laptop from home. To open a bank account online, you need your Social Security Number along with other personal information outlined above. You can make the initial deposit through your existing debit card if permitted, or you're another bank account by giving in your bank’s name, address, routing number and account number.

(Image Courtesy: Business line)

It is also important to note that in certain circumstances, a bank may also reject your application for a new bank account. This could occur in the following cases.

#1. Your Personal Information Couldn’t Be Verified

Owing to the growing number of identity thieves using fake data for opening an account, banks have now started to double-check your personal information. Any mistake on the form or documents may render your application invalid and rejected by the bank.

(Image Courtesy: CSO Online)

#2. You’re Flagged

People who mismanage their accounts or are suspected of fraud are flagged by banks as high risk. If you have been flagged, you will have to apply for a second-chance checking account instead of a regular one.

(Image Courtesy: Free Pik)

#3. Bad Credit

While most banks usually check for your status, some may also scan your credit report to analyze your past banking records. A bank might also reject your application if you have bad credit or discrepancy in banking history.

(Image Courtesy: Auto Deets)

Now that you know what you need to open a bank account, do not waste time and open one today. But before you start collecting your documents, spare a couple of minutes and tell us if you found the information here useful. We would love to hear from you.

(Featured Image Courtesy: Nerd Wallet)