Savings Account Without Initial Deposit – What to Consider

by danmont

Opening a free savings account without initial deposit was not possible a few years ago; however, the internet has provided new opportunities to savers.

Considerations when Opening

Nowadays, more people are taking advantage of the convenience provided by online banking. It is easier to find well-known banks offering free savings accounts without an initial deposit; do you know what that means? Basically many financial institutions normally charge a maintenance fee if your main bank account(bank account where your salary is paid into) is not with them; they also required an initial deposit, as well as a minimum amount in order to open the account; however, the good news is that the traditional process is slowly changing, partly due to the use of the internet as the main tool to perform many banking transaction; as a consequence many costs involved with dealing directly with the clients have diminished considerably passing part of this cost savings to the customers in terms better services and conditions; one of them is to be able to open a savings account without requiring an initial deposit or having to transfer your salary into one of the accounts managed by the same bank.

Selecting the Best Bank for You

Choosing the best bank is important if you want to open a free savings account with good terms and conditions. One important factor to consider is that the number of small and independent bank is on the increase and as part of their expansion strategy they tend to offer better deals that many established banks; however, it is imperative to select a well-known bank that meets all your requirements. There are many banks that offer free savings accounts; in the United States you can open one in the Bank of America, Citibank, ING and Chase; however, the terms and conditions vary from time to time as well as the interest paid; therefore, you must perform a further check before agreeing to open an account with the bank of your choice. A good tip before you make a final decision is to buy the Sunday’s newspaper as they normally compare the top 5 to top 10 best deals in the finance section.

General Requirements

It is important to read carefully the terms and conditions - One aspect to take into account is how straightforward will be to retrieve your funds once you have transferred your money into your new savings accounts; many banks request you to leave the money for a specific period of time in order to receive all the benefits promised (higher interest rate, free services and less restrictions). As a general rule all financial institutions are required to perform checks in order to avoid identity theft and money laundering, therefore they will ask you to provide:

  • Proof of you current address and previous one if you have not been living there long enough; banks normally require at least two years
  • Your driving license or passport
  • Identity card
  • Social security number
  • Proof of income
  • Personal references
Updated: 09/14/2011, danmont
 
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barbarab on 09/14/2011

my bank takes a few cents out of the checking and puts it into my savings but I end up transferring it back to checking before the next pay day :(
very good article...now if only this recession would turn around eh?

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