Do You Need Enough Saving to Open a Bank Account?
As people begin to earn more income, safely storing the fruits of one’s labor becomes a key question. Opening a bank account has become quite commonplace and is now usually one of the first hallmarks of reaching adulthood. Rather than holding all of one’s earnings as cash, it can be easier to deposit one’s funds in an accredited bank with up to $250,000 in Federal Deposit Insurance Corporation guaranteed protection.
Given that there are many banks and credit unions that service different geographies, each will have its own rules regarding management fees, minimum deposits, and interest paid on any savings held with the bank. Nowadays, there are even some online-only banks without physical branches that offer no-fee bank accounts and access to ATMs around the country, making it easy for customers to withdraw money even if they do not have any physical bank branches near them. With all the choices out there, it is important to conduct research to decide which type of bank account is best suited for one’s needs.
Do You Need Enough Savings to Open a Bank Account?
Traditional brick and mortar bank establishments have historically charged depositors monthly maintenance fees if their bank account balances fell below a certain threshold, usually around a few thousand dollars. Learning how to open new bank account is daunting to a young adult without any savings or individuals without a stable income. However, given the number of new banking and online solutions out there, it is important to note that not having enough savings is no longer an obstacle to opening a bank account. According to the experts at SoFi, SoFi’s banking platform offers incredible perks like “No overdraft fees. No minimum balance fees. No monthly fees. Plus, 55,000+ fee-free ATMs within the Allpoint network.”
These new banking competitors have created more opportunities for individuals to access bank accounts and e-payment, bringing about conveniences that were not available even just a few decades ago. Nowadays, the barrier to entry of owning a bank account is zero dollars, which democratizes the process for anyone interested in creating an account.
Furthermore, by meeting certain thresholds, like signing up for a direct deposit, many savings accounts like SoFi banking also offer incredible perks like receiving one’s paycheck two days early and earning a 1.5% annual percentage yield on any savings deposited in the account. As such, anyone who is interested in opening a bank account can research the opportunities out there to determine which is the most convenient for their financial circumstances.
Bank accounts have become essential to the financial well-being of individuals and families in the modern era. In the past, income and savings levels may have been factors that prevented some individuals from opening bank accounts that required minimum savings or deposit levels. However, changes in modern-day banking opportunities have meant that there are banking service providers who have gotten rid of pesky banking fees, including minimum deposit fees, which has made it incredibly easy for individuals to open a new bank account.