Study
Abroad : IMMIGRATION:
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How
to open a Checkings or Savings Account
What
are checking and savings accounts?
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| Checking
and savings accounts are the two most popular types
of deposit accounts banks offer. Checking accounts
allow you to write checks or use debit cards against
the balance of your account. Merchants generally
treat transactions paid for by debit card or check
as if they were cash transactions. This means you
will not owe interest on anything paid for by check
or debit card. You will, however, be assessed a fee
if your account is overdrawn - unless you have
overdraft protection. Savings accounts allow you to
keep an amount of money in the bank and earn a small
interest rate. They are generally completely liquid,
meaning you can withdraw money at any time without a
fee. A savings account is not a place to invest, as
interest rates on these accounts are extremely low
compared to investments in stocks or bonds. Why are they important? |
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Shaadi.com Indian Matrimonials
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| Checking and savings accounts form the backbone of personal finance. Without a checking account, it is nearly impossible to pay bills, since most companies will not accept paper currency (i.e., dollar bills) as payment. Savings accounts are usually kept as overdraft protection for checking accounts, or as holding places for emergency cash.
Steps:
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Research
banks and credit unions in your area to find out which
one best fits your needs.
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Gather
the necessary documentation.
The bank will want to see your Social Security
card or Tax ID, passport or other photo ID, and name,
location and routing number (if you are transferring
funds electronically) of your old bank.
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Call
or visit the financial institution you have chosen.
When you call, ask to speak with the "new
accounts" department. Tell the bank
representative what kind of account you want, and ask
about the bank's policies and procedures.
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Give
the bank representative the needed information, and
arrange to have your first deposit credited to the
account.
The first deposit can be made by check, electronic
funds transfer, and occasionally by credit card.
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