Common Cents

So you’ve figured out which bank you’re going with and now it’s time to set up an account. This is a pretty straightforward process although the exact steps may vary from bank to bank though.

Let’s run you through the steps (generally)

1. First up, you’ll likely need ID of some kind, like a driver’s license or state-issued ID card.
   1. Requirements as to what kind of ID will vary.
   2. One of the less common types I saw was at Austin Telco Credit Union where they even allow you to use a concealed handgun carry permit as acceptable ID!
   3. You may also need proof of address, like an electric, phone, or some other utility bill.
2. Next, you’ll fill out the application. You can do this online nowadays, or in person at a branch office of your chosen bank.
   1. This is where you’ll probably see some bigger differences between banks. Bank of America has questions up front regarding employment and income source, while Blue Federal Credit Union doesn’t ask about that, at least not initially.
   2. On the other hand, Blue has truly unique eligibility requirements! On top of the standard proof of identity, they require you to be referred by an existing member or your employer, or otherwise pay a $10 membership “contribution” (read “fee”). Ostensibly, at least half this fee goes towards supporting a charitable foundation, so that’s nice, I guess.
   3. Each bank will have different applications, so it pays to be careful, take your time with the application, and ensure you meet the requirements, no matter how odd they may seem.
3. Some banks may require you to make a deposit to open the account. Again, this will differ bank-to-bank so make sure you know what your chosen bank requires before you apply.
4. Last, you just need to wait for approval for your new checking account!

That’s all there is to it! It really is a straightforward process, assuming you meet the requirements to set up the account. That said, those requirements can be tricky! So be prepared to spend some time reading through them carefully and ensuring you are able to meet them.

There’s always a (small) catch…

Some requirements that may be tricky to meet:

1. You’ll almost always need to provide proof of identity, even if you don’t have a driver’s license.
   1. If you don’t drive, make sure you have a state-issued ID. All states will provide you with this ID, usually only for a small fee.
   2. Now, getting that ID can be a pain in and of itself, and each state’s requirements for getting one will vary, so do your best to get it as soon as you legally can, as renewing it is far easier than freshly applying for one. Life has a way of sneaking up on you and, before you know it, you’re working, starting a family, etc. and won’t have time to go get that ID.
2. Proof of address is usually not too much of an issue, assuming you have a utility in your name.
   1. Where it gets tricky though, is if someone else is paying the bills where you live. This most commonly occurs with kids, and there are special accounts for kids available with most banks to help work around this requirement.
   2. If you’re not a kid, but, say, all utilities are included in your rent, then rental agreements (your lease) often work fine as well. If you’re on the lease, chances are your proof of address is good to go too.
3. Last, making that initial deposit, if required, can be an issue.
   1. Some banks require you already have a checking account from which you will make the initial deposit via a transfer. But how do you get that first checking account in the first place?? The easiest way is through a referral from a friend or family member.
   2. With a referral, some banks may not require an initial deposit until the account is fully set up (or at all), so you can get the account and then make the first deposit later.
   3. If the referral route doesn’t work, commercial banks do seem overall more willing to provide an account for someone without an initial deposit and without a referral.

In any of these tricky cases, going to the actual physical bank building to talk to a representative is probably your best bet. Bank employees may have tools and processes available to them to help you get your first checking account set up, even if you’re having trouble meeting all the requirements. When in doubt, talk to a real person! It usually ends up working out.

Thanks for reading.