Living
Bank Accounts
There are approximately 7,540 banks in the US, with 75,000 branches throughout the world. The US banking system is regulated by the Federal Reserve System, which is the central bank. It was created by Congress in 1913 in order to create a stable yet flexible financial structure. The Federal Reserve provides financial services to the US government, as well as the public and other financial institutions.
There are two kinds of banks in the US, the first being local banks. These banks conduct relatively simple traditional banking business, such as lending and deposit services. The second type of bank is the ‘mega’ bank: they have local braches but are based in global financial centres, such as New York, and conduct international transactions as well as regular banking business. The number of branches depends upon the bank. Whereas a small bank such as Richmond County Savings Bank has branches only on Staten Island, a mega bank such as Chase Manhattan has over 100 branches in New York City alone.
Many banks offer ‘one stop shopping’ to the consumer, and therefore several different types of accounts. In addition to chequing accounts, there are also several types of savings accounts. For example, in addition to the traditional savings account, there are also different types of IRA accounts, some of which allow you to withdraw your money tax-free, without penalty. There are also retirement CDs (certificates of deposit), which allow you to deposit your money for a pre-determined period of time, from one month to 10 years, and offer a higher interest rate (your interest rate is determined by the amount of money you deposit). Many banks offer financial planning centres, in which you can create financial strategies for any facet of your life, business or personal. This includes taxes, buying or selling your home, and dealing with life’s milestones, such as sending a child to college.
Most banks offer chequing and savings accounts, insurance and investment services, credit cards, ATM cards, debit cards, access to safety deposit boxes, loans, wire transfers, cheque cashing, accounts for children, and other services. You can conduct your banking at the branch, through an ATM, through the mail, over the phone or online.
All banks charge fees for use of their services. For example, if you withdraw money from an ATM at your own bank, you may be charged a low fee ($1) or no fee at all. If, however, you take money out of the ATM of another bank or at a free-standing ATM machine (there is one in nearly every deli in New York City), you will be charged anywhere from $2-$5. In addition, your own bank will then charge you another fee (usually around $2) for taking money out elsewhere. In addition, you will be charged approximately $30 for bounced cheques, overdrafts, or if you stop payment on a cheque.
Most banks now offer free cheques, but you do have a choice. A chequing account in which you have to maintain a minimum balance usually offers more services, such as free overdraft protection, or a credit card with higher credit limit.
In order to open a bank account, you will usually need a driver’s licence or state-issued non-driver identification, as well as a social security card and proof of address, such as a current electric bill. However, subject to bank approval, non-citizens and even non-residents can open a bank account in the US, with a valid passport (translated into English). Most banks will not allow non-residents to open an account online – you will have to go into the bank and provide the necessary documentation. An international bank, such as Chase Manhattan, has an international page with instructions for opening an account with them.
Bank Opening Hours
Bank branches have different hours, but most banks are open from at least 09:00 to 17:00 Monday to Friday, and most are open on Saturdays until at least 13:00. Some branches will have a late night during the week, others may open early on a particular morning. ATM services are available 24 hours a day, every day.
There are two kinds of banks in the US, the first being local banks. These banks conduct relatively simple traditional banking business, such as lending and deposit services. The second type of bank is the ‘mega’ bank: they have local braches but are based in global financial centres, such as New York, and conduct international transactions as well as regular banking business. The number of branches depends upon the bank. Whereas a small bank such as Richmond County Savings Bank has branches only on Staten Island, a mega bank such as Chase Manhattan has over 100 branches in New York City alone.
Many banks offer ‘one stop shopping’ to the consumer, and therefore several different types of accounts. In addition to chequing accounts, there are also several types of savings accounts. For example, in addition to the traditional savings account, there are also different types of IRA accounts, some of which allow you to withdraw your money tax-free, without penalty. There are also retirement CDs (certificates of deposit), which allow you to deposit your money for a pre-determined period of time, from one month to 10 years, and offer a higher interest rate (your interest rate is determined by the amount of money you deposit). Many banks offer financial planning centres, in which you can create financial strategies for any facet of your life, business or personal. This includes taxes, buying or selling your home, and dealing with life’s milestones, such as sending a child to college.
Most banks offer chequing and savings accounts, insurance and investment services, credit cards, ATM cards, debit cards, access to safety deposit boxes, loans, wire transfers, cheque cashing, accounts for children, and other services. You can conduct your banking at the branch, through an ATM, through the mail, over the phone or online.
All banks charge fees for use of their services. For example, if you withdraw money from an ATM at your own bank, you may be charged a low fee ($1) or no fee at all. If, however, you take money out of the ATM of another bank or at a free-standing ATM machine (there is one in nearly every deli in New York City), you will be charged anywhere from $2-$5. In addition, your own bank will then charge you another fee (usually around $2) for taking money out elsewhere. In addition, you will be charged approximately $30 for bounced cheques, overdrafts, or if you stop payment on a cheque.
Most banks now offer free cheques, but you do have a choice. A chequing account in which you have to maintain a minimum balance usually offers more services, such as free overdraft protection, or a credit card with higher credit limit.
In order to open a bank account, you will usually need a driver’s licence or state-issued non-driver identification, as well as a social security card and proof of address, such as a current electric bill. However, subject to bank approval, non-citizens and even non-residents can open a bank account in the US, with a valid passport (translated into English). Most banks will not allow non-residents to open an account online – you will have to go into the bank and provide the necessary documentation. An international bank, such as Chase Manhattan, has an international page with instructions for opening an account with them.
Bank Opening Hours
Bank branches have different hours, but most banks are open from at least 09:00 to 17:00 Monday to Friday, and most are open on Saturdays until at least 13:00. Some branches will have a late night during the week, others may open early on a particular morning. ATM services are available 24 hours a day, every day.
