You’ll need to provide an initial deposit when you open a bank account. This amount can vary from one bank to another and can be as high as $1,000. Although it may seem like an inconvenience at first, there are several reasons why banks require this initial deposit:
Bank accounts usually have a minimum deposit to open
Many accounts require you to make a minimum deposit to open an account. SoFi experts say, “Some institutions require minimum deposits to help you pay for your overhead expenses.” This can range from $100 to several thousand dollars, depending on the type of account. For example, some banks have student and teacher savings accounts with no minimum opening deposit requirement, while others have high-yield savings accounts that require starting with at least $500 in your new account.
If you’re trying to set up a checking or money market account, though, expect to pay more: most require at least $1,000 (though it’s possible that this could be waived if your credit score is high enough).
Minimum opening deposits vary widely
Minimum opening deposits vary widely. In the United States, for instance, some banks may ask you to deposit $200 while others require $1,000 or more. The amount of your deposit is often determined by the type of account you’re opening and its associated requirements (for example, certain types of accounts may have higher minimums than others).
Some banks may also waive their minimum requirements if you meet certain conditions (you’re a student or retiree), so be sure to inquire about any such waivers before making an investment decision.
Your minimum opening deposit may be waived under certain conditions
Depending on thebank, you can waive the minimum opening deposit requirement by maintaining a certain balance for a set period. For example, if you opened an account at Bank of America with $5,000 and maintained that balance for 90 days, they’d waive the minimum opening deposit requirement (usually $250).
Some banks also have special offers where they’ll waive their standard opening deposit requirements if you sign up for something else (e.g., checking or savings). This can be useful if your local branch doesn’t offer free checking and there isn’t another branch nearby that does offer free checking!
It might be worth shopping around to find the best deal
Because banks compete for customers, it might be worth shopping around to see what’s available. One bank may offer a lower minimum deposit requirement and/or lower monthly fee than another.
Banks also vary in their policies regarding how much money you need to keep in your account before they charge you for having an account there. This is referred to as the minimum balance versus fee threshold. Banks typically set this threshold between $10 and $100,000; at some institutions, it might be higher (and vice versa).
In this post, you must have learned more about the opening deposits required by banks. While it may seem trivial, knowing what you need to open an account can help avoid confusion and make things easier on yourself when going through the process.
