Account Opening

Account Opening-

Knowing how to open a savings account means knowing how to make your money work for you. Cash in a savings account typically earns interest — potentially near 5%, which is better than the national average savings rate of 0.45%. Ready to get started? Here are the steps to take, followed by tips on finding the best option.

1. Choose how to apply

Depending on the institution, you could apply online, by phone, in person or even by mailing an application. If you apply online, the process can take 10 to 20 minutes. Need to compare accounts? Read NerdWallet’s list of best savings rates.

2. Gather your identification

For the application, you will likely need to provide your Social Security number (or tax ID number) and information from a government-issued ID, such as a driver’s license or passport number.