I remember the first time I opened a bank account. It was a little nerve wrecking, because I did not know exactly what I need to open a bank account. This is given that it was my first time getting a bank account in a new country with a different banking system. As a result, I did not know what I need to a bank account as a young working class adult.
What did I do then?
I had to google just like you did right now to get to my platform. I was told I needed three major documents. One for proof of residency, the second to show authorization to maintain account in the United States. Lastly, the third is just some money to start the account with.
Did you ever watch or read, opening your first bank account, my dear reader?
I mentioned how this naivety ended costing me $25 dollars per month to maintain a checking account. But, I am not going into it today. Today, this article is about making sure you have the right documents to create the bank account you truly need to function as a young working class adult.
Documents You To Open A Bank Account
First of all, there is a legal age to opening a bank account. In the United States, this is the age of eighteen or more. What if you are a minor?
Well, a minor can open a bank account with an adult. If you are less than the age of eighteen, you need a custodial account for a minor. What this means is your bank account will be attached to an adult’s bank account. Your parents or custodian will have access to it any time.
I know it sounds controlling, but you have to know banks do not trust you yet. This is since you are not legally an adult yet. There is a belief you are only financially responsible at the age of eighteen or more. Now whether that is true or not, is not what I am going to be arguing today.
Having mentioned the age requirement, the three documents you are going to open a bank account are the following below:
Social Security Card
Banks will always ask for this documents for taxing purposes. As I mentioned on the video above, banks always report to the IRS at the end of the year or when you deposit more than $10,000 in your bank account. The reason is to track money laundering, correct taxations and frauds.
With respect to you, it is a way the bank verifies your identity. What do I mean by this?
Well, a stolen social security number can be used to wreak financial havoc on any hardworking adult out there. So when banks ask for your social security card, they are comparing that with another form of identification. Your name matching means the SSN belongs to you.
Besides, it is the industry standards for all banks. I mean banks requesting your social security number and card. It is an industry compliance policy. You will see a lot of this with monetary transactions during your life as an American adult.
So, be sure to take your social security card with you to the bank. Do not make photocopies. Take the original card with you.
Other State or Federal Approved Forms Of Identifications
By other legal forms of identifications, I mean one of the following IDs below:
- Driver’s License
- National passport card
- Military IDs
- Native American tribal card
- International passports
- Permanent resident card
- Foreign international passport. This is if you are foreign national living in the United States.
Speaking of foreign nationals living in the United States, I advise you take your TIN OR ITIN (Individual taxpayer identification number) with you. This is especially, when you do not have a social security number. You can take your TIN and your foreign passport with you to the bank.
Proof Of Residency
You would think the above would be enough to open a bank account, but banks want more. They want you to prove the address on your driver’s license is really where you live. This is a security measure.
So, I want you to take any one of the following with you.
- Utility bills statement
- Credit card statement
- Cable statement
You take any one of these with you. If you do not have any, you can just take any mail with your name and the address on it. Just be sure to blur any personal information before giving it to the bank.
When I first opened my account, I took a mail about my tuition to the bank. It had my name and my address which was the same as my driver’s license. The bank accepted it without issues.
Cash Deposits
One of the requirements for opening a bank account is a cash deposit. Most traditional banks will ask you to make an initial deposit with your new account. Some banks have certain cash deposit requirement depending on what type of bank accounts you are going for.
So, how much money is needed to open a bank account?
I advise going in with a minimum of $25. Some online banks may not care at all. Most will not ask you to deposit right away. I know this from first hand experience, because I recently opened a bank account with SoFi. Two weeks later, I funded the account.
Yes, most online banks are cool like that.
It is in contrast to my first bank account in the United States with a brick and mortar bank, also known as traditional bank. As I mentioned on my YouTube video, I went in looking like a fool carrying +$30 and some cents. Yes, you heard that well. I think it was $37.68.
The banker gave me the most interesting look, when she saw the coins. The coins rattled on the table and echoed to that woman, the depth of my naivety and the current poverty I was facing as a young adult then. I always burst out laughing whenever I recall this memory.
Anyways, take some cash with you. You can deposit any amount you want, but just keep at least $25. I advise calling the bank in advance too to ask what its minimum deposit to open a bank account is.
Opening a bank account requirements are basically the same for almost all banks in the United States. I noticed the online banks are more relaxed though. This is because when I opened a bank account with SoFi, I did not upload a copy of all the documents I told you here. SoFi only asked me to type in my social security number, my legal name and my address.
I believe everything I laid out to you here will set you up for success. If you watched the video, subscribe to my YouTube channel to be part of the journey where we simplify personal finance and grow towards our life dreams. Finally, you can check out my guide on what to consider when choosing a bank account. That way, you do not end up paying monthly maintenance fee for a bank account like I had with my first bank account.
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