Checking accounts
Checking accounts are ideal for money you plan to use for everyday spending. Most include checks and a debit card so you can directly withdraw funds and move money around electronically. But these accounts usually don't offer any interest on your money.
Money market accounts
Money market accounts share some features of checking and savings accounts. They help you earn interest on your funds, and may also give you some means of directly withdrawing cash from the account. However, these accounts often have higher opening or ongoing balance requirements.
Certificates of deposit (CDs)
Certificates of deposit (CDs) are another option for savings you don't plan to use for the next several years. These accounts can offer higher APYs than you'll find with savings accounts, but you must agree to leave the money alone for several months or years. If you take your money out early, you could face penalties.
RELATED: See our guide to the different types of bank accounts.
If you plan to open a money market account -- or any other bank account type, for that matter -- you'll need the following information:
- Social Security number
- Driver's license, passport, or other government-issued photo ID
- Routing and account number for another bank account in your name if funding via electronic transfer or wire transfer
If you have any questions about required documentation, you can always check the bank's website or contact its customer service department for support.
Visit the website for the bank you plan to open an account with, and navigate to the page for the account you're interested in. Look for the "Apply Now" or "Open an Account" button and fill out the application page it brings you to. Most banks will ask for the following:
- Your full, legal name
- Your birth date
- Your address
- Your email
- Your phone number
- Your Social Security number
Depending on the bank, you may need to scan a copy of your government-issued ID or fax it to the bank. You may also have to submit a copy of your signature for the bank to have on hand for verification purposes.
Again, if you have any questions during the application process, you can always reach out to the bank directly for assistance.
5. Fund the account
Most banks will require you to deposit some funds into the bank account as soon as you open it or within a certain number of days after opening. You can fund your account several ways:
- Direct deposit
- Electronic transfer
- Wire transfer
- Check deposit
Some banks may have minimum opening deposit requirements. For example, if you're opening a checking account online and it asks for a $100 minimum opening deposit, you must have at least $100 ready to deposit. Otherwise, you can't open the account. That's different from an ongoing balance requirement, which is the amount you need deposited to maintain to avoid a monthly maintenance fee.
If you choose a checking account with one or both of these requirements, you must stay mindful of your checking account balance over time to avoid monthly fees.
