By Max.
How do I open a bank account?
To open a bank account, you need to provide some identifying information. For example, your ID, social security number, your birth date, and phone number. Most banks require you to be 18+ to open up an account. That said, some banks will allow student or child accounts to be made in your information, underneath your parents’ name. This allows your parents to have access to your money and account, as long as you remain in a student account.
Many banks also require a deposit fee, so that you aren’t opening up an empty bank account. In my case, my bank had a $100 deposit required to open an account. That felt insane to me at first, but I saved up after doing some art commissions and opened an account with that deposit. Most places require you to go in person with your deposit, your ID, and other information listed above. They will walk you through the steps of setting up your account. You will have to sign some papers/documents verifying your information, and often times they will print your debit card in-house.
Once you have your debit card, be sure to ask your bank if there’s any activation process or anything else that you need to do ahead of using the card. If not, you’re now free to use your brand new debit card.
Small Max Tip
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If you plan to use your debit card online, try to use it in a physical store location first. Sometimes, online stores will flag your fresh card as fraud or suspicious if you haven’t used it before. Alternatively, your bank may flag it, even if the online retailer doesn’t, especially if it’s new.
What about savings accounts?
A savings account is a lot alike your bank account (AKA, your checking account). The difference being that if you add money to your savings account, and do not spend it, it will collect interest over time. Most banks pay out interest to your savings account monthly. Similar to a credit card, your interest is based off of an APR (annual percentage rate). The current savings account I have is about 2.73% APY (annual percentage yield). So over the course of a year, I will have earned 2.73% of the balance in my saving’s account. If I put in $100, a year later I would have about $102.73, since it’s yearly interest. However, because most interest in a savings account is compounded monthly, I might end up with a few extra dollars. This is because the interest that the bank pays me will continue increasing my balance each month, causing them to give me slightly more money each time.
This post was originally created by Max, on October 6th, 2022 in The Homeschooler’s Chat Discord server, and edited by Anne. Learn more about Max and Anne on our About Us page. Cover photo by micheile henderson on Unsplash.