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Choosing the Right Account: Your Essential Guide

There is a range of flexible account solutions out there that are tailored to your specific financial needs. Whether you’re looking for convenient day-to-day banking, secure long-term savings options, or strategic investment opportunities, we have you covered. Get familiar with the different types of accounts below to find the perfect fit for your financial goals.

Checking Accounts: Checking accounts are transactional accounts that allow frequent deposits, withdrawals, and payments. They typically come with features such as debit cards, check-writing capabilities, and online banking access, making them suitable for everyday expenses and managing cash flow.

Savings Accounts: Savings accounts are designed for depositing and accumulating funds over time while earning interest on the balance. These accounts often have higher interest rates compared to checking accounts and are ideal for setting aside money for short-term or long-term financial goals.

Certificate of Deposit (CD): CDs are time deposit accounts that require customers to deposit funds for a fixed period, ranging from a few months to several years. In exchange, the bank offers a higher interest rate than regular savings accounts. Withdrawals before the maturity date may result in penalties.

Money Market Accounts: Money market accounts combine features of both checking and savings accounts, offering higher interest rates than traditional savings accounts while providing some check-writing and debit card privileges. They typically require higher minimum balances to open and maintain.

Opening an online account with a financial institution is easier than you think. Whether you’re new to online banking or looking to switch to a more convenient option, we’ve got you covered. Below, we’ve outlined the simple steps you’ll need to follow to get started: 

Personal Information: This includes your full name, date of birth, residential address, email address, and phone number. You may also need to provide a valid government-issued photo ID, such as a driver’s license or passport.

Social Security Number (SSN) or Tax Identification Number (TIN): Most banks require either your SSN (for U.S. citizens and residents) or TIN (for non-residents) to verify your identity and comply with regulatory requirements.

Proof of Address: You may be asked to provide a utility bill, rental agreement, or other documents that verify your residential address.

Funding Source: You’ll need to fund your new account, so you may need to provide the routing and account numbers of an existing bank account to initiate a transfer. Some online banks also accept debit or credit card payments for initial deposits.

Employment Information: Some banks may ask for details about your employment status and income to assess your financial stability and risk profile.

Legal Agreements: You’ll likely be required to review and agree to the bank’s terms and conditions, privacy policy, and any other legal agreements governing the use of the account.

Identity Verification: To prevent fraud and ensure compliance with anti-money laundering regulations, you may need to undergo identity verification through methods such as providing answers to security questions, uploading a photo of your ID, or undergoing a video call with a bank representative.

Minimum Deposit: Some online banks may require an initial minimum deposit to open an account, though this varies depending on the bank and the type of account you’re opening.

It’s important to note that requirements may vary depending on the specific bank and your location. Always check with the bank directly or visit their website for the most accurate and up-to-date information on opening an account.

Frequently Asked Questions

• Is my money safe in the bank?
  • Yes! National banks are insured by the Federal Deposit Insurance Corporation (FDIC) which protects up to $250,000 per person per institution. So for any event that may affect a financial institution’s health or viability, whether a natural disaster or default, a customer’s money is insured through this federally regulated mandate.
• Is my money safe in the bank during a recession?
  • Yes. Any money you have deposited into a checking, savings or another type of bank account is safe during a recession. Major banks are FDIC insured therefore you are covered for the full balance of your account typically up to $250,000.
• Which is the safest bank in the world?
  • Since all major banks are insured by the FDIC, all rank similarly when it comes to safety. The FDIC insures up to $250,000 per person per account and per bank. This is the same cap for a credit union, though they are insured under the National Credit Union Administration.
• What’s the No.1 bank in America?
  • Based on the number of branches and ATMs available as well as customer service hours and products offered, Chase Bank is the No. 1 largest bank in the U.S. with a presence in nearly all 50 states as well as a network of 16,000 ATMs.
• What are the top 10 biggest banks?
  • The Federal Reserve regularly reports on the biggest banks in America, determined by the number of branches/ATMs available as well as services provided for customers. With that in mind, the top 10 currently include, in alphabetical order: Bank of America, Capital One, Chase Bank, Citibank, Goldman Sachs, PNC Bank, TD Bank, Truist Bank, U.S. Bank and Wells Fargo.