Opening a Bank account in America
100% online is difficult due to the money laundering laws. When you are new to
the Country of America, then you probably have concerns concerning how to
manage your finances. The media promotes different banks, credit cards, and
they all promise "low interest".
How Banks Work
How banks work in America,
knowing this information will help you understand briefly about banking system
in America. Specialized
in financial services, most banks are chartered institutions. A portion of the
money you put in the bank for safekeeping the money will be taken by the banks
and it will be invested in transactions involving high interest.
In return, on savings account, the bank will often offer you
a lower interest rate. For the sake of withdrawal of money to their customers,
your bank will always have a specific amount of money in its reserve that can
be taken out.
FDIC (Federal Deposit Insurance Corporation) is a special
insurance provided by many banks through the Federal Government that insures
deposits of up to $100,000.
Any bank that you deposit funds in should be FDIC insured to
protect your deposits. There will be a small logo displayed at the teller
windows if it is. Some banks can insure higher amounts of deposits, so if you
plan to deposit large amount of money, it is important to discuss this with a
bank officer.
You require bringing the following identification to open a
bank account in US.
- Your
Social Security Card, if you are a resident
- Your
Driver's License or State I.D Number
- Another
Form of I.D(like a credit card, passport, work I.D card or Student I.D.
Card)
Following are the Types of Bank Accounts in US
- Checking
Accounts (With or Without an ATM Card)
- Savings
Account
- Money
Market Deposit Accounts
- Certificates
of Deposits(CD's)
- Safe
Deposits
Checking Accounts (with or without an ATM card)
When you deposit money into a checking account, your bank
will give you checks (in a small book form). You can write checks for
purchasing items, paying bells, or to withdraw cash (by writing the check to
yourself or to cash and signing it)
Savings Account
A savings account is just that: an account system where you
deposit your money to save it. Some banks will offer interest on the account.
There are also usually a maximum number of withdrawals or transfers each month
that can be made (this will vary from organization to organization).
Money Market Deposit Accounts
Money Market Deposit Accounts (MMDA) are special that are
provided by most banks, which allow you to write checks and deposit money.
When
comparing with regular checking or savings accounts, MMDAs will give you a
highest interest rate, but they also in need of a higher minimum balance before
you start earning the interest.
Your transfers are confined to only six in any
month including only three checks written in a month's time.
Certificates of Deposit (CDs)
Certificates of deposit, or CDs, are deposits made that are
guaranteed a certain rate of interest over a period of time (such as two
years). Different CDs offer different interest rates, and depending on the CD, the
time interval your money must remain deposited will vary. This can vary from
four weeks to ten years.
Safe Deposit
A bank will generally have special vaults that can be rented
for the purpose of keeping valuable items, such as jewelry, documents, or other
valuable items.
When you rent a vault, you are given a key that only allows
you (or those who you name as co-renters) access to this vault. In order to
prevent the damage from fire or water (such as flooding), safe deposit vaults
are created to be highly resistant, and are usually safer than most home vaults
for guarding important items.
The way of life in America
is such that they love everything to be fast and easy. We live in a fast paced
world, where every single second counts. So when something comes by that seems
to be a time saver, we love the idea and want to give it a try.
With the state of the art technology and ideas, Americans
are opting for new online banks from the old brick and mortar banks. This made
it possible for we people to bank online by sitting at home with a single click
of the mouse.
Statistics show that many Americans are using online banking
to save money and time. For example, 22 million Americans used online banking
as their main way to manage their finances in 2004.
So except something particularly
spectacular happens to either the Internet or all the online banking sites,
then it appears that the 22 million figure will go up year after year; and many
more Americans will sign up for an online banking service.
The growing trend of Americans that are using the Online
Banking services is reflected in some statistics themselves. The safety precautions
that online banks take to secure sensitive customer information are the only
problem that Americans may want to know more about the service.
Most Americans each year are victims of identity fraud; and
it seems like they can't get a break when it comes to this problem. So
Americans are always concerned about their safety, particularly when it comes
to giving out sensitive information over the Internet.
For the sole purpose of extracting information from you, Internet
is rife with spy ware and viruses. This is the main reason why so many
Americans are staying away from the online banking scene and in its place are
using either telephone banking or going down to their local branch to keep a
track of their accounts and transferring money.
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