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Finding the Right
Bank... Page 3
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5) Rates
- What is the current interest rate?
- Are rates based on the level of your account balance?
- How often is interest compounded?
- What balance is required to start earning interest?
- When does the interest begin accruing? When you deposit money or when the check clears?
- What is the Annual Percentage Yield (APY)?
6) FDIC
Look for banks that are insured by the Federal Deposit Insurance Corporation (FDIC). The
government protects your money for up to $100,000 in losses. Ask the bank what FDIC rules
will apply to your account. Look for a bank's Member FDIC sticker.
Opening an Account
What you need to open an account:
1) Valid Identification. You should bring a valid I.D. such as a driver's
license, social security card, birth certificate, or passport.
2) Social Security Number. Banks require you to provide a social security
number to open an account -- for tax purposes.
3) Signature Card. You must sign a signature card so the bank can
identify your handwriting on future checks, deposits, or other banking services.
4) Application. The application tells the bank what type of account
you're going to open (joint, individual, etc.). You'll have to list important information
such as full name, address, phone number and other personal information.
5) Initial Deposit. Most banks require you to make a minimum intial
deposit to open a bank account.
6) Direct Deposit Form. You have to fill this form out if you want your
paycheck to be automatically deposited to your new account. You'll also have to notify the
company for which you work -- so they can complete the appropriate paperwork.
Banking and Savings Calculators:
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• How much will my savings be
worth?
• How will taxes and
inflation affect my savings?
• How much difference will
the rate make?
• How much, at what rate,
when? |
