Bank accounts are an essential tool for securing one’s financial future. They provide a safe and secure way to store money, make transactions, and earn interest. While opening a bank account has become relatively easy in today’s world, it was not always so simple. The history of opening bank accounts is fascinating, dating back to ancient civilisations where people would keep their valuables with moneylenders who would lend money to people in need.
During the Middle Ages, banking evolved and wealthy merchants would use banks to store their wealth and conduct business transactions. The first bank to offer a modern-style savings account was the Bank of England in the 18th century. However, it wasn’t until the 19th century that banks became accessible to the general public. In the United States, the first savings bank was established in Boston in 1816.
The Great Depression of the 1930s brought significant changes to the banking industry. Bank accounts became federally insured, providing customers with a guarantee that their money would be safe even if the bank failed. The introduction of online banking in the 1990s further revolutionised the banking industry, making it easier and more convenient for customers to access their accounts.
There are several ways to open a bank account, depending on one’s needs and preferences. One way is in-person at a bank branch, which is the traditional way of opening a bank account. Customers visit a bank branch; speak with a representative who provides information on the different types of accounts available. Customers can then choose the one that best suits their needs and complete the necessary paperwork while providing identification documents.
Another way to open a bank account is online. Many banks now offer online account opening, which is convenient for customers who don’t have the time or inclination to visit a bank branch. Customers can visit the bank’s website, choose the type of account they want, and complete the application online. They will need to provide identification documents, such as a driver’s license or passport, and may need to make an initial deposit.
Mobile account opening is also a popular way to open a bank account. Some banks offer mobile account opening, where customers can download the bank’s app and open an account from their mobile device. This is particularly convenient for customers who are always on the go and prefer to do things from their phone.
Some banks offer account opening through third-party services, such as online marketplaces or retail stores. Customers can visit these locations, provide their identification documents, and complete the application process.
According to a 2020 survey by the Federal Deposit Insurance Corporation (FDIC), 95% of households in the United States have at least one bank account. This is an increase from 2019 when the figure was 93.6%. The survey found that the most common type of bank account is a checking account, with 72.9% of households having one. The second most common type is a savings account, with 47.7% of households having one.
The survey also found a significant difference in bank account ownership between income groups. While 99.1% of households with an income of $100,000 or more have a bank account, only 71.1% of households with an income of less than $15,000 have one.
Opening a bank account is an important step towards financial security, and there are several ways to do it. Whether in-person, online, mobile, or through a third-party, customers have many options to choose from. The banking industry has come a long way since its inception, and it will undoubtedly continue to evolve with the ever-changing needs of its customers.