Q&A for How to Open a Bank Account

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  • Question
    What is daily interest, and how do I calculate it?
    Paridhi Jain
    Paridhi Jain
    Certified Public Accountant
    Paridhi Jain is a Certified Public Accountant and the Co-Founder of Seva Ltd, a CPA firm operating in Maryland and Alabama. She has over 10 years of professional experience in the financial sector and has built a reputation for assisting small business owners navigate the intricacies of regulatory compliance, encompassing areas from company structuring and entity formation to detailed nexus determinations for income and sales tax. She is an active member of the Alabama Society of CPAs and has a certification in pre-professional accounting. She graduated Magna Cum Laude from the University of Maryland, Baltimore County with a major in Information Systems.
    Paridhi Jain
    Certified Public Accountant
    Expert Answer
    Daily interest refers to the amount of interest incurred on a financial arrangement, such as a loan, calculated on a daily basis. Let's consider an example with a principal amount of $100 and an annual interest rate of 10%. If the interest is compounded daily, the daily interest can be determined by dividing the annual interest rate by the number of days in a year, which is 365. In this case, the daily interest would be approximately $10 divided by 365, resulting in around 2.7 cents per day. This means that each day, the borrower would be accruing 2.7 cents in interest on the loan. Over the course of a year, this daily compounding would accumulate to the agreed annual interest of $10. It's essential to understand this concept to gauge the ongoing cost of the loan on a daily basis.
  • Question
    How old do you have to be to open a bank account?
    Community Answer
    Community Answer
    If you are over 18 years of age, you can open a bank account on your own. If not, a parent or legal guardian may have to sign some documents for you and will usually be responsible for your savings and transactions.
  • Question
    How will a savings account help me in the long run?
    Community Answer
    Community Answer
    A savings account is a great place to save money for things you may need in the future, such as a car, house, or vacation. Because it is separate from your main account, you won't be tempted to use that money for ordinary things, like gas, food, and bills. It might even earn your some interest over time.
  • Question
    What should I think about before choosing a bank to open up an account?
    Community Answer
    Community Answer
    Primarily, you should consider the bank's reputation and the location of a nearby branch should anything go wrong with your account (not applicable for online banks). You may also want to consider the fees being collected by the bank for its services, how would you use the account, and the fees associated with that usage (i.e. Cross-border banking).
  • Question
    If I'm currently living abroad, have a social security number and will be returning to the US shortly, can I open a bank account?
    Community Answer
    Community Answer
    Yes, as long as you have proper identification that shows you are a resident of the U.S. Try opening the account after you return so you can have proper identification. An ID with your address in another country cannot be used to open an account in the U.S.
  • Question
    Can I open a bank account even though I'm a student? I don't know what to use as a proof of identification.
    Donagan
    Donagan
    Top Answerer
    Use a picture ID, such as a driver's license or student ID. A government-issued ID card (such as Social Security) will also help.
  • Question
    Can I open an account without an ID card?
    Community Answer
    Community Answer
    No. All banks and credit unions are bound by The Patriot Act which means an ID card, driver's license, or passport must be presented when opening an account.
  • Question
    I am 18 years old and want to open an account, so which type of account will be better for me: checking or savings?
    Community Answer
    Community Answer
    Most banks offer a free savings account with a checking account, so you should get both: checking to pay your bills, and savings to earn interest on money you've tucked away.
  • Question
    Can I open a new account without paperwork if I have a joint account?
    Community Answer
    Community Answer
    No. Both parties need to be there with proper identification to open a bank account jointly.
  • Question
    I have a large amount of money saved up, but I don't have a job. Could I still open a bank account to keep my money in, or do I have to have a job?
    Donagan
    Donagan
    Top Answerer
    No, you don't need a job.
  • Question
    How do I set up my own bank account number?
    Community Answer
    Community Answer
    Randomly choose a number between 6-12 and tell the bank you wish to register under that number. They should then send you a confirmation. If they do not accept this, try a different number and keep insisting on it. Note that not all banks will allow for this and it may depend on which country you're in.
  • Question
    If I want to move money from my current account to my deposit account, what do I do?
    Donagan
    Donagan
    Top Answerer
    If these accounts are at the same bank, you can do this easily online at the bank's website, or go to the bank and have them make the transfer for you. If the accounts are at different banks, just withdraw money from one account, and deposit it in the other.
  • Question
    Can I get a debit card and check book by opening an saving account but not opting for a checking account?
    Donagan
    Donagan
    Top Answerer
    No, you need a checking account to get those things.
  • Question
    What are the various services offered by banks?
    Donagan
    Donagan
    Top Answerer
    Banks offer savings and checking accounts, personal loans, credit and debit cards, investment opportunities, and help with money management.
  • Question
    Do banks require credit checks to open savings accounts?
    Donagan
    Donagan
    Top Answerer
    No.
  • Question
    What is age requirement, and what deposit should I make?
    Donagan
    Donagan
    Top Answerer
    If you're a minor, you can open an account (with a parent's help) at any age. The opening deposit will vary among banks, but most have a very small minimum.
  • Question
    How do I get my Social Security number?
    Donagan
    Donagan
    Top Answerer
    Apply for a Social Security account. Go to the nearest Social Security office, or do it online at ssa.gov/ssnumber.
  • Question
    How much do I have to have to keep an account open?
    Donagan
    Donagan
    Top Answerer
    Some banks impose minimum balance requirements, while others do not.
  • Question
    Will the bank give us ATM cards when we open an account?
    Donagan
    Donagan
    Top Answerer
    Probably. Ask the bank.
  • Question
    Will they give me an ATM card at the beginning of the account opening?
    Donagan
    Donagan
    Top Answerer
    Ask the bank for an ATM card when you open the account.
  • Question
    Can I use an athletic ID to create a bank account?
    Community Answer
    Community Answer
    No, an athletic ID is unlikely to be considered an acceptable form of ID. However, you can call your bank ahead of time and ask them whether that would be sufficient.
  • Question
    I am under 18 and don't have a passport. What should I use as an ID?
    Donagan
    Donagan
    Top Answerer
    Use a driver's license or student ID.
  • Question
    Can we open a joint account online?
    Donagan
    Donagan
    Top Answerer
    In most cases, yes.
  • Question
    Does it always have to come out of my checking account if I write a check or swipe my debit card?
    Chaff LS
    Chaff LS
    Community Answer
    It will always come out of your checking account. With a savings account, you are not given a debit card nor check book. Therefore, the only place the money can come from is your checking account.
  • Question
    Can a mother open a saving account for her daughter who has just turned 18?
    Donagan
    Donagan
    Top Answerer
    An 18 year old can open her own account.
  • Question
    I already have an account in the bank. Can I open another account with them?
    Community Answer
    Community Answer
    In general, yes. This can vary from bank to bank and customer to customer. In addition, some banks may charge additional fees for having multiple accounts. Contact your bank.
  • Question
    Can I open a bank account if I am under 18 years old?
    Eric
    Eric
    Top Answerer
    Yes, you can open a bank account if you are under 18 years old. Whether you can have an account without a parent or guardian as a co-signer may be determined by state law and bank policy.
  • Question
    I am not a US resident, can I still open an account?
    Eric
    Eric
    Top Answerer
    Yes, you can still open an account. Check with the bank you want to open an account with to determine what documentation is required to open an account.
  • Question
    Do I need to have a good credit score to open an account?
    Community Answer
    Community Answer
    You can consult each individual bank to find out what they require in order to open a bank account.
  • Question
    Does my spouse have to give her social security number for a joint account?
    Donagan
    Donagan
    Top Answerer
    Yes.
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