It is very hard to go through life without a bank account. Even if you’re lucky enough to have a landlord who accepts cash or money orders, you still need a bank account for different things. It lets you show proof of your address and can also come in handy when you apply for a loan. Your bank will give you an ATM card that lets you make payments and take out money while also getting peace of mind that the bank will keep your money secure. Though opening a bank account is easy, you need to make sure you’re eligible for one.
What Do You Need to Open a Bank Account?
The main things you need when opening a bank account include your ID and proof of your address. As long as you have a driver’s license, you can present that to the teller. Banks will also accept your passport and any ID that the state issued. Showing your proof of address is easy if you live at the address shown on your ID. If you moved to a different place and don’t yet have a photo ID, you can bring in a utility bill that lists your new address.
Age for a Bank Account
For those wondering how old do you have to be to open a bank account, the answer is that you need to be 18 or older. As per the experts at SoFi, “There isn’t a federal law that says you have to be a certain age to have a bank account. However, each state can have its own regulations regarding accounts for young savers and, depending on the state, financial institutions also may have the ability to set their own rules.” It depends on your state and the bank you choose, though. Not all banks require that you be 18 to open an account as long as you have an adult with you. You can bring a parent or a legal guardian and let them open a joint account. As soon as you turn 18, you can remove them from your account.
Custodial vs. Joint Accounts
Many banks offer both joint and custodial accounts. A joint account is suitable for a minor but also allows those with a bad banking history to open a new account. The bank will hold all names on the account responsible for it. A custodial account is different because it lists the minor’s name but gives the custodian full control over the account. The custodian can add or remove money whenever they want and even if the minor is not there. Custodial accounts usually remain in both names until the minor reaches the age of 18 or 21, after which it becomes just their account.
Another option for people in school is a student bank account. These accounts are only available for students who can prove their enrollment. You usually need to bring a copy of your transcript or paperwork from your school. Some banks offer more benefits for students, such as checking accounts with no fees and savings accounts with higher interest rates.
You need to be 18 or older if you plan to open a bank account in your name. Most banks offer other types of accounts for those under the legal age. No matter what type you choose, make sure you bring everything you need to open your account.