Business & Finance / How Many Bank Accounts Should I Have
How Many Bank Accounts Should I Have
As a rule, to open a bank account, you must have a Social Security number (SSN)1. Although there are a few exceptions. For example, students with student visas can open an account without a SSN (more details can be found in the bank).
Social Security2 number is assigned by the Administration of Social Security , and is now widely (though not justified) is used for identification in taxation and in other cases. To obtain this number, you must have a legal visa, which gives the right to reside in the United States. Social Security Administration (Social Security Office) is in every city in the country. Further information can be found on the government website ssa.gov.
To open a bank account, you also need to be in possession of any document with a photograph. This is usually a driver's license, but if you do not drive a car instead of driving license you can use a non-driver ID card. In most states a license is issued at the same place where a driver's license shall be issued. For information, contact the local Division of Motor Vehicles. In addition to these documents, many banks require proof of your residence in the United States. This proof may be, for example, phone bill or utility bill with your name.
Choosing a bank
In the U.S. there are plenty of banks that serve different types of accounts. To select the bank you will need to gather some information. Usually it is enough to make a few phone calls. Many banks charge a commission for the service account, which is gathered over the year in a fairly large sum. Look for a bank, which charges fees will be minimal. See also:
Is there is a bank near your home or work?
Does the bank takes a fee for using ATMs3 ?
Does the bank requires having the minimum balance on the account without a fee for service charges?
Most banks offer two types of accounts. Opening and maintenance of the former is free of charge, regardless of whether the account has a certain amount of money. But for this type there is no paid interest. The second type of account allows you to earn a little. If you keep the account balance not below a certain amount (usually $ 500), you will not pay a fee for its services. If the balance will be less, you have to pay a service charge of about $ 5 a month.
How many bank accounts should I have?
It depends on the amount and type of payment transactions, which may make the client of the bank. All the account can be divided into current, savings and custody.
It is an active bank account, which can be used for contributions and from which you can make payment transactions. You will get an interest, but at a rate lower than, for example, on savings accounts. The number of transactions in this account is unlimited. It is also possible to obtain a credit card of any type. For customers from Eastern Europe, this usually occurs after 1-2 months from the date of account opening. Additional deposits are generally not required.
A savings account is used for a certain amount for a fixed term in order to obtain the incoming interest. The higher is your contribution and the term of the deposit, the higher will eventually be the return. Interest income is directly dependent on both the deposit amount and the timing of the deposit and accrued at the end of each month. Number of payment transactions on this account is limited. At the end of the contribution you will receive the entire accumulated amount.
This type of account is used to provide complex services for securities and other financial assets of the client.
Current and savings accounts are usually opened in the Swiss, European and U.S. currencies. Also the other services of online banking are available.
Depending on who is the owner of the account - natural or legal person, as well as the level of confidentiality, the account can be divided into registered, numbered and legal.
This account opened by the bank in the name of the client.
Advantages: you can manage your account through any bank, presenting a document identifying you.
Disadvantages: low degree of confidentiality. When transferring money from your registration account to another, the receiving bank will see your account number and the name of the owner.
These types of an account are used to strengthen the bank secrecy. Only a few bank employees are aware of the identity of the account holder, the rest do not see anything except numbers. To ensure maximum efficiency it is required to comply with certain precautions on your part.
A numbered account subject has the same provisions as other bank accounts. The information constituting banking secrecy may be released under suspicion of "laundering" the money. Numbered accounts provide reliable data protection in cases of divorce, challenging the right of inheritance or bankruptcy. Bank always knows who the true owner of the account.
When you open a numbered account, a set of digits is used for the identification of the owner instead of the holder’s name. The system of numbered accounts, also known as a "system of banking license," in essence, is an internal guarantee of the bank, seeking to ensure that the identity of the account holder is known by only a narrow range of bank employees.
Another advantage of numbered accounts: they provide complete privacy of bank transfers. This means that you transfer money from your account to someone else's one, the receiving bank will only see your account number or, in some cases, nothing but notes: Bank XYZ, acting by ask of a client.
Advantages: an incomparably greater degree of privacy than individual accounts have. Disadvantages: most transactions are have to be done only through a banker, and you cannot use their accounts through a bank network, etc.
This account is opened for a legal entity, which can be a virtually any company, including offshore one. These types of accounts are also used to achieve the highest degree of confidentiality. This is achieved by opening an account at an offshore company or trust fund, as well as by opening numbered accounts for legal entities.
Advantages: the highest possible degree of confidentiality. Disadvantages: compliance with all the formalities for obtaining the right to use the account. All types of accounts can be managed via fax.
Social Security number (SSN) - a nine-digit number for initiating U.S. citizens and permanent residents.
Social Security - an independent agency of federal government in the United States that establishes Social Security, social insurance programs and survivors' benefits.
ATM - an automated banking machine or a cashpoint.