How to Open a Savings Account

Steps to Opening a Savings Account

1. Choose How to Apply

There are different ways to sign up for a savings account. You can fill out an application online, over the phone or attend the institution in person. The most convenient way may be to fill it out online and the process usually takes between 10-20 minutes

2. Collect Your Identification

For any application, you will need a government issued ID; this can be your driver’s license, state license or passport. In most cases, you will also need to provide your social security number as well. Along with your ID and social security number, you will need to provide your address, phone number, email address and birthdate.

3. Select Type of Account

When you apply for the savings account, you can choose a single or joint account. If it is a joint account, the other applicant will need to provide the same information as above.

4. Accept the Terms & Conditions

This is all the fine print at the end that no one ever really reads through. However, this is the most important part of the application. You will need to review and confirm the company’s fees, liabilities and interest rates. Ideally, you want to choose an account that will earn high rates and has no or low monthly fees.

5. Choose Your Deposit Amount

Most banks will require some type of deposit, usually between $25-$100. However, some banks have no minimum deposit requirement. If you are opening an account online or over the phone, you can transfer funds by providing the routing and checking account number from your bank account. If you apply in person, you can bring in a blank check.

6. Submit Your Application

When you submit an application online, you will likely receive an approval or denial within minutes. Although, it may take a few business days for the bank to verify and officially create the account for you. Once you have an open savings account, you can set up direct deposit from your checking to your savings accounts and schedule automatic transfers each month. By setting up an automatic transfer, you won’t have to put much work into your savings accounts.

Choose the Best Savings Accounts

When searching for a savings account, look for ones that have few fews and earn high interest rates. By doing so, your balance will grow much faster. An average savings account will earn 0.05% annual percentage yield and higher yield accounts can earn even 20 times that rate. Look around and do your research before settling. Here are some savings accounts options to look into:

1. American Express

  • No minimums, no monthly fees
  • Easy access to your. money
  • Up to 9 withdrawals/transfers per month
  • 0.60% APY

2. Nationwide

  • No minimums, no monthly fees
  • $100 deposit to open your account
  • No minimum balance requirements
  • Earn up to 0.70% APY

3. HSBC

  • No monthly fees
  • Low opening deposit requirements
  • $1 minimum balance
  • 0.50% APY

4. FNBO Direct

  • No monthly fees
  • $1 minimum balance
  • 0.60% APY

5. Discover

  • No monthly fees
  • 0$ minimum balance
  • 0.60% APY