Banking Basics

A bank, credit union, or thrift is a business that offers you a safe place to keep your money and uses your deposits to make loans. This business is also called a financial institution. Banks offer many financial services. Let’s look at how to open and maintain an account.

Open the account and go through account verification (the process a bank takes to make sure that you are who you say you are and that you’re able, under the law, to open a bank account).  Ask the bank what type of identification you need to open an account. To verify your identity, the bank will need photo identification such as a:

• Drivers license and Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN)

If you’re not a United States citizen, banks may accept other forms of photo identification including a:

• Matrícula consular card, resident alien card (Green Card) or passport

The bank may also review your history of using checking accounts through companies such as TeleCheck or ChexSystems. It may also run a full credit report.  If the bank determines that you are eligible to open an account, you can deposit money into your new account.

If you’re unable to open an account, ask the bank if you’re eligible for any “second chance” checking programs. These programs may allow you to open a checking account after meeting certain requirements, such as completing a check-writing workshop.