A bank is a financial institution that allows you to deposit and withdraw money. Even though there are other kinds of financial institutions such as credit unions and the fast-growing mobile wallets, banks are the most common ones. You must open a bank account either online or at a physical branch to enjoy the services. Some banks give you some amount of money for free when you open an account. I will discuss later the various bank that pay you to open an account.
When we talk of banks paying you to open an account, we talk about the welcome bonus you get when you open an account. Various banks offer various bonuses to lure you into their businesses. Every business must apply some tactics to ensure that they remain relevant and can make profits, and giving you a welcome bonus is one of them. After all, the banks know that they will make good profits from you once you start banking.
When opening a bank account, you can either open a checking or a savings account. There are also other kinds of bank accounts such as brokerage, CD, and retirement accounts. It all depends on your personal preferences. There are also several requirements when opening a bank account, as we shall see. The most important requirement is your identity document which helps to prevent criminals such as terrorists, money launderers, and human traffickers from opening bank accounts.
Factors to consider when opening a bank account
There are various factors you should consider when opening a bank account. They include the following.
i) Opening deposit
Some banks require you to be ready with some opening deposit, while others do not require an opening deposit. If you do not have money to deposit at a particular moment, you should consider the banks with no opening deposit.
That’s if you are opening an account to receive a salary or any other kind of money. There are many free checking accounts with no credit check no deposit that you can open for your banking needs, and therefore, you will not strain at all
ii) Fees
Banks usually charge various fees on the services that they provide. If you are not observant, you may open an account with very many fees. Fees that banks charge include monthly maintenance fees, annual fees, withdrawal fees, and so on. Some banks do not have annual and monthly fees whatsoever.
iii) Online access
We have gone digital, and people are busy to get time for activities such as lining up in banks to open accounts. Therefore, it is better to choose an account that has online access.
iv) APY %
If you are opening a bank account to save money, you require an account with a high Annual Percentage Yield. Some checking accounts also offer APYs when you maintain certain balances in your account.
v) ChexSystems
There are various online checking accounts with no Chexsystems that allow you to regain your reputation with your banks. ChexSystems is an agency that records negative account usage.
What are the requirements to open a bank account?
You can only open a bank account if you have all the required details. The federal government requires that every financial institution request the following details.
- Social Security Number (SSN)
- An identity document. This can be your passport, a government ID card, or a driver’s license.
- A physical address
- An email address
- A phone number
How to open a bank account
As I mentioned earlier, you can open a bank account online or at a physical store. Online bank application is the easiest to open and takes very little of your time.
The first thing you should determine before opening a bank account is the type of account to open. You can open a savings account or a checking account. You also need to check various banks and see the features they offer before you open a bank account with them.
Once you have known the bank with the best account, you can open an account with them. The online account opening requires you to visit the concerned bank website and navigate to the account application page to apply. You have to fill out the entire fields as per the requirements. The online application takes several minutes for the process to complete.
When you apply at a physical branch, you will submit various documents and fill out various paperwork. You will also need to take passport-sized photos that your bank will fix on your application papers. It can take several minutes to hours depending on the number of people in the queue.
Once you’re online application goes through, your bank will notify you through the most appropriate means. If applying at a physical store, you will get feedback as soon as you open your account.
How do I use a bank account?
There are various ways on how you can use your bank. They include the following.
a) Buy goods and services
A bank account allows you to purchase goods and services online. You only need to check out with your account details to authorize your transaction. Some merchants can present you with their account and routing numbers to transfer money.
Most banks and credit unions allow you to use a checking account to purchase goods and services. It does not matter the nature of the checking account, as all kinds of checking accounts allow you to spend your money the way you would like. Even when you open a checking account with bad credit, you will use it as an ordinary checking account. However, you might get a few restrictions.
b) Send money to others
You can send money to people from your bank account or other banks online. Transferring money from your bank account to accounts within the same institution is mostly free, while transferring money to other banks can cost you a few coins.
c) Withdraw cash
You can withdraw money at a physical branch over the counter. Also, if your bank account has a debit card, you can withdraw funds from an ATM.
d) Save for your future
Bank accounts are good to help you save for your future. If you open a savings account, you will save significantly for your plans and earn interest.
Can I open an account with poor credit with any bank?
Most banks do not allow you to open a bank account if you have a good banking history. However, that should not worry you since some banks can allow you to open a second chance checking with no opening deposit at all.
A second chance checking account is the one you open with a bank if you misused bank accounts before. Banks usually report you to ChexSystems if you misbehave in the following manner.
- If you close your account with a negative balance.
- When you write bouncing checks.
- If you use your bank account for fraudulent transactions.
A second chance account can help you to regain your lost glory with your previous banks.
Which are the 8 best banks that pay you to open an account?
Various bank accounts give you a bonus when you open an account with them. They include the following.
1) Citibank
The bank is offering you a big bonus when you open an account with them. You can get up to $1,500 when you open a new checking account. To qualify for the bonus offer, you have to deposit funds within 20 days of opening the account. Your account balance on the 20th day is the determinant of the bonus amount you will get.
However, if you closed your Citibank account within 180 days, you are ineligible to apply for the account. Again, to get the bonus, you must apply via the webpage with the offers.
2) PNC Bank
PNC Bank is offering you up to a $300 bonus when you open an account with them. If you are not a PNC consumer checking account and have not closed one within the previous 90 days, you can qualify for a $100, $200, $250, or $400 bonus from the bank. The offers may not be available in different regions of the country.
To earn the highest bonus ($400), you must open a new PNC Virtual Wallet with Performance Select. The $250 bonus requires you to open a new PNC Virtual Wallet containing Performance Spend and have at least $2,000 of qualifying total direct deposits in your Spend account.
3) TD Bank
The bank allows you to get a $150 or $300 bonus when you open an account. The $300 bonus is available if you open a Beyond Checking account online, have never held a TD Bank personal checking account, and at least $2,500 of direct deposit within 60 days of the account opening account.
You can get the $150 cash bonus if you open a Convenience Checking account. The account requires direct deposits of up to $500 within 60 days of account opening. It is only available in some places.
4) M&T Bank
You can get up to a $250 bonus when you open any personal checking account at M&T Bank account with M&T Bank. You must make a qualifying direct deposit of at least $500 to qualify for the bonus. You can trust the bank since many users have rated it as one of the best banks you can have. The M&T Bank headquarters are in Buffalo, New York.
5) Chase Bank
Chase bank gives you a $225 bonus when you open a checking account. For you to earn the $225 bonus, you must open a new Total Checking account and carry out a direct deposit of at least $500 or more within the first 90 days of account opening.
If you want to qualify for the bonus, you must not have an existing Chase checking account. Again, you must not have closed any account with a negative balance in the past three years. Moreover, you must not have closed one within the last 90 days.
If you are a college student aged 17-24 years old, you can earn $100 by opening the Chase College Checking account.
6) Huntington National Bank
You can get a $150 or $200 bonus when you open an Asterisk-Free Checking account and then make a cumulative deposit of $1,000 or more within 60 days of the account opening. Again, you will be able to get $200 for opening a Huntington 5 Checking account and then make a cumulative deposit of $1,000 or more within 60 days of the account opening. The offers are only valid for Illinois, Indiana, Ohio, Pennsylvania, Kentucky, Michigan, and West Virginia.
7) Bank of America
You will be able to receive a $100 bonus when you open a personal checking account online. You must not have a Bank of America personal checking account within the past 12 months to benefit from the offer. Again, you must open a new Advantage Plus Banking, an Advantage SafeBalance Banking, or Advantage Relationship Banking account online.
Additionally, you must make an opening deposit of $25 for the Advantage SafeBalance Banking account and around $100 opening deposit for the others. Moreover, you must receive qualifying direct deposits of at least $250 within 90 days of account opening. You must use the code DDX100CIS to qualify for the bonus.
9) Axos Bank
]The Axos Bank gives you $20 when you refer someone and $20 to the person you refer. To get the bonus, your friend must add and maintain at least $500 for a whole month. Also, the friend must receive a direct deposit of $500 or more within the first 90 days of account opening.
Furthermore, your friend must not have owned an Axos Bank account at any given time. They should use your personalized referral link.
Bottom line
A bank account allows you to deposit and withdraw money. You can open a savings or checking account, depending on your personal preference. Most banks allow people to open an account online. However, you can open at a physical location. You must have all the requirements to open an account. Some banks offer you an opening bonus when you meet specific requirements.
