How to Choose and Open a Savings Account

Written by Banks Editorial Team

Updated August 29, 2023

2 min. read

Learning how to choose and open a savings account can be overwhelming if it is your first time doing so. Do you want to know how to open a savings account and the best account to operate? Find out how to choose and open a savings account below.

What is Required to Open a Savings Account?

To operate a savings account, one needs to understand the requirements for opening an account, the minimum deposit, the interest rate, and other vital information. Having a deep understanding of these helps one to avoid unnecessary surprises. You will find out things to consider before making the decision to open a savings account and how to open a savings account as you read on.

Things To Consider Before Open a Savings Account

To open a savings account, you must first understand the terms of the savings account such as minimum deposit requirements, interest fees or maintenance fees. This can help grow savings and avoid unpleasant surprises. Find out if the account has an online option for easy accessibility and transactions.
Online features will include things like checking your balance, opening a new account, transferring money, etc.
Define your savings goals and choose an appropriate account to open. Banks offer options for customers depending on their goals.
Determine the right bank for your savings. To do this, you will need to compare the products and services offered by various banks. Some banks have enticing bank account bonuses.
After you choose a bank, it is important you get the necessary documents and information ready. Getting things organized will help one to easily open an application for a savings account.
Depending on the purpose of your savings account, you might want to forget that the money exists so you can achieve the savings goals.

To find out more on things to consider before choosing and opening a savings account, check here.

How to Open a Savings Account

When you have made the decision to open a savings account and have chosen the type of savings account you want to operate, you will have to do the following:

1. Choose and Compare the Right Bank

It is important to choose a bank that offers a good interest rate. You will need to review the interest rates of several banks, their minimum balance requirements, and other services to be able to choose the right bank to open a savings account.

2. Fill Out the Bank Application Form

When you are settled for a bank, you will approach the bank to commence the process of account opening. This includes filling out the application form that will require you to provide information such as name, date of birth, address, phone number, email address and tax identification number.

3. Choosing the Savings Account Type

You will need to identify the type of savings account you want to operate. Either traditional savings, money market account or certificate deposit account. Also, you will need to identify if the account is individually owned or jointly owned. In the case of a joint account, the signatories will need to complete their details as necessary. There are conditions and necessary agreements in opening a joint account that must be fulfilled.

4. Identify and Designate the Beneficiaries

You will need to indicate and include the beneficiaries of the savings account. This is important especially for events such as death, the beneficiary or beneficiaries will be paid whatever money you have saved. The usual beneficiary is a spouse or partner. Having beneficiaries in an account may allow automatic transfer of savings.

5. Fund the Account

There are some accounts with minimum deposit requirements but not all banks require this. It is necessary that you fund the savings account after the application.

They have a default username and password that you need to update for keeping the personal information secured. Passwords should be a combination of numbers and letters.

7. Open an Online Account

An online account can be coordinated with bank personnel to help you on how to create one. Online banking is a trend today as it gives more convenience to customers in handling their money.