If you were planning to open a savings account, but don’t know where to start, bookmark this post. Opening a savings account is easier than what you might expect. This type of account should be a place to set aside your money for emergencies and safekeeping.
Continue reading below since we will be reviewing what you need to know and what steps to take in this guide.
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What To Consider Before Opening a Savings Account
Before you decide to open a savings account, you should first decide which bank or credit union you want to use. From there, the online financial institutions or local bank will have multiple options to choose from. However, you should consider the following factors to best suit your needs:
- Interest rates: You should look for banks with higher interest rates because that means the your balance earns more money. Online banks often offer higher interest rates.
- Access to money: You have to go to an ATM or wait for a bank-to-bank transfer to go through when you want to withdraw cash from an online bank.
- Fees and balance requirements: Check if you have to maintain a minimum balance and look out for other fees that counteract with your savings
What Do You Need To Open a Savings Account?
Before you go to open a savings account, make sure you have the following documents and information:
- Driver’s license, passport or military ID
- Proof of physical address
- Social Security number or individual taxpayer identification number
Most places will require you to show two forms of identification. If you open a joint savings account, you’ll also have to provide the information for everyone in the account.
How To Open a Savings Account
You can open an account online from a computer and mobile device or you can go the bank in person. This might be the case if you had issues with your checking history or if you want to make a large deposit.
Here are the steps to opening a savings account:
- Before you open an account, compare banks’ interest rates and fees
- Bring your driver’s license or other government-issued ID and proof of residence.
- Apply for an account at a physical branch or online.
- Make an initial deposit if required.
Savings Account Alternatives
If a traditional savings account isn’t suited for you, there are other saving alternatives.
- Certificate of Deposit
- CD’s have higher interest rates than traditional savings accounts but have more restrictions. If you choose to go with a CD, your money will be locked in the account until the end date and you will be penalized if you withdraw early.
- Money Market Accounts
- If you’re looking for a saving account with higher interest rate, a money market account would be for you. Money market accounts come with features such as a debit card and checks. This type of account works well if you need to pull funds early.
Is It the Right Time To Open a Savings Account?
There is no real correct time to open a savings account. It should be based on your personal situation. If you are looking to meet financial goals, then it would be smart to open one up. You can also plan for your children’s future to help financially stabilize in the future.
Compare Savings Accounts
With the CIT Bank Savings Builders account:
• Earn a top tier, competitive APY on your money—one of the top savings rates in the nation. Earn up to 1.00% APY on your funds - grow your savings faster.
• Build a habit of savings. Pay yourself first. Start with $100 per month and build your habit of savings-—all while getting a top rate.
• FDIC Insured
With the American Express® High Yield Savings Account:
• Earn 3.00% APY as of 11/17/22 on your deposits. Your High Yield Savings account earns interest daily and is posted to your account monthly.
• Links easily with your current bank accounts. No need to switch banks.
• FDIC Insured. Your account is insured to at least $250,000 per depositor.
• 24/7 Account Access
Open a Discover Online Savings Account for all these features:
• Earn $200/$150 Bonus with promo code HMB922 by 12/15/2022
• Earn high interest rate of 3.00% APY
• No minimum opening deposit, no minimum balance requirement, and now no fees
• Interest on Discover Online Savings Accounts is compounded daily and credited monthly
• Manage your account online or with the Discover mobile app
• FDIC insurance up to $250,000
• See advertiser website for full details
To get your $150 or $200 Bonus: What to do: Apply for your first Discover Online Savings Account, online, in the Discover App or by phone. Enter Offer Code HMB922 when applying. Deposit into your account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Deposit must be posted to account within 30 days of account open date. Maximum bonus eligibility is $200.
What to know: Offer not valid for existing or prior Discover savings customers or existing or prior customers with savings accounts that are co-branded, or affinity accounts provided by Discover. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 30 days of the account qualifying for the bonus. Bonus is interest and subject to reporting on Form 1099-INT. Offer ends 12/15/2022, 11:59 PM ET. Offer may be modified or withdrawn without notice.
Opening a savings account is easy when you sit down and prepare. So before you commit to one, make sure that you know everything and what steps to take. You can look into the best rewards checking account and the best free checking accounts. While you’re here on HMB, you can also check out the best bank promotions to take advantage of.