Opening Bank Accounts
Holding a bank account is very essential todo in the living . Bank Account is needed for making
payments,settling bills,receiving pay and for other reasons with world being computerised.However
living in USA mandates bank account for every person.
Here are the documents required for opening a bank account
Your social security number
Your driver license (home country or international)
First cash deposit, minimum between 25 and 100 US Dollars.
There are two major types of bank accounts in America
Checking account
Savings account
Checking account
The checking account is the account type used for regular, daily use. It is excellent for frequent
deposits and withdrawals. In most cases it earns you no interest. Checking accounts are usually
free to open, but many banks will charge you a monthly fee if the average monthly balance of the
account will drop below a certain amount. In other words you have to keep in the bank all the
times a certain minimum amount of money (varies from bank to bank, but it is usually a few hundred dollars)
if you want the monthly fee waived. These monthly fees are usually around $10/month.
However some banks offer free checking accounts with no imposed limits called free checking accounts
Savings account
A savings account is the account type used for savings. If you want to keep your money in the bank
for a longer time this is what you should open. Because the number of withdrawals is limited only
to a few free transactions per month only, it is not suitable for daily use such as a checking account.
For parking your money in the savings account the bank will pay you a monthly interest.
You won't get rich this way, the interest is pretty low, starting anywhere from tenth of percents
to a few percents (e.g. from 0.5% to 2% typically), depending on the amount deposited.
This interest rate is below the rate of the inflation. This is the reason why keeping money
long term in the bank actually will result in loss of money, despite of all contrary beliefs.
