As you process towards adulthood, you realize just how important savings are. A savings account is one such way that allows people to safely keep their hard-earned money and gain interest on the same. Almost everyone has a savings account because of the high bank interest rates on savings account and the security offered by banks.
Moreover, these accounts have now been digitized, which makes them even more convenient than before. Wondering how you can open a savings account? Then, you have come to the right place. Below we have a step-to-step guide on how you can open a savings account.
Consider applying options
To open a savings account, the first thing that you would need to do is choose your institution or bank. While you are doing that, make sure you do not randomly pick an institution and go for it. Instead, you should compare the interest rates and benefits offered by different institutions and then choose an institution.
After that, you should consider the options you have. Many banks allow three options which include application in person, by mail, or through your phone. Applying online is recommended as it takes only 10-20 minutes.
Gather all documents
For the application, you will need several documents required by the bank for processing your application. Make sure that you check with the institution to see what documents you need. You would definitely need your tax ID number or your social security number. Along with that, information from a government-issued ID is also required.
Keep these documents in a folder if you are submitting them in person. If submitting online, make sure you keep them all in a single folder so that they are easier to access.
Provide contact details
The bank will require your personal information, including your contact details. Ensure that all this information is correctly filled in. They will require your full name, address, phone number, and other such details. Since you will be contacted via the information you have provided the bank with, make sure that the address and phone number you have provided are valid and in use.
Along with that, make sure that you give your permanent phone number. Do not give contact details that are temporary or usually remain out of service. Steps to open a savings account
Choose between a single or joint account
While you are opening a savings account, you get the option to either go for a single account or go for a joint account. Joint accounts are those which you can share with your partner or your family. If you are going for a joint account, you will be required to provide all the information mentioned above for the other person as well.
Many times parents hold joint accounts with their children to save their funds till they are independent enough to handle it themselves.
Accept the terms and conditions
This is the step where the bank will hand you over the terms and conditions of opening and holding a savings account with them. Not reading the terms and conditions properly is a mistake that you would want to avoid. So, make sure that you read them carefully and ask if you have any doubts.
After you have done that, you will have to accept the terms and conditions presented.
Choose your deposit account
You will have to deposit a certain account required by the bank to open your account. If you are opening your account online, you can easily transfer your funds from an existing bank account. If you are opening the account in person, you can deposit the amount through a cheque. Some institutions might also allow you to mail the check.
Submit your application
If you are applying online, you will get an acknowledgment for your application within a few minutes. However, the confirmation of your application and the access will be given to you after a few days as the bank r=needs time to verify your documents. Once that is done, you will have your savings account.
These are all the steps you need to follow to open a savings account. A savings account is a great way to keep your money saved for any emergency.
That was all. Happy savings!