How to Open a Savings Account (and Whether It Affects Your Credit Score)

Deciding to open a savings account is one of the simplest but most impactful things you can do for your financial well-being. Whether you have specific savings goals, like a down payment on a home, college tuition, or a vacation or you just want funds set aside as an emergency buffer, a savings account will provide you with the financial security you’re looking for. Though there are several types of savings accounts, and each person contributes to theirs a little differently, opening and maintaining a savings account is easier than you might think.

Below we outline how to open a savings account, the different types of accounts, and what effect, if any, it could have on your credit score.

Steps to Open a Savings Account

1. Choose your account type
   Depending on what your savings goals are, what your timeline is, and how much money you want to initially deposit, there are different types of savings accounts you can choose from.
   • Traditional Savings Account: Simple savings structure, typically with a minimum balance requirement or monthly fees.
   • Rewards Savings Account: Offers a higher interest rate in exchange for meeting specific conditions, such as maintaining a minimum balance, making a certain number of deposits, or having a linked checking account
   • High-Yield Savings Account: For those wanting higher interest returns, these accounts typically have low minimum balance requirements and are great for growing your savings at a higher speed
   • Money Market Account: The structure of a savings account with the flexibility of a checking account to easily access your money
   • Specialty Savings Accounts: CDs, IRAs and savings accounts for children and students have a structure and terms tailored to the account-holder, their goals, and life stage
2. Gather your documents
   Have your government-issued photo ID (driver’s license or passport), your Social Security Number or Tax ID Number, Proof of Address (i.e., a utility bill), and an opening deposit ready to go.
3. Apply
   You can:
   • Talk to a banker and apply in-person at a brick-and-mortar location
   • Apply online via the bank’s website
     However you apply, you’ll fill out your personal information, identify whether it’s a single or joint account, and read through and accept the account’s terms and conditions.
4. Fund your account
   Most banks will require a minimum opening deposit, though the amount varies depending on the account type. You can fund your account with cash or check if it’s in person, or transfer from another account if it’s online.
5. Set up your preferences
   The purpose of a savings account is to build it. As soon as you have access to your account, enroll in online banking to track of your balance and set up automatic transfers from a checking account. This way, you’ll have a consistent stream of money routed to your savings without even having to think about it.

Does Opening a Savings Account Affect Your Credit Score?

No, opening a savings account does not directly affect your credit score.

Because it does not involve borrowing money or taking on debt, any activity with your savings account is not reported to the credit bureaus and no hard inquiry is made into your credit when opening savings account. Your savings account’s effect on your credit score is not something to be concerned about.

However, it’s possible for your savings account to indirectly protect your credit score. Having a healthy savings account can help you avoid missed payments during financial emergencies and provide overdraft protection for your checking account.

Savings accounts help you grow your money steadily and securely. It’s a low-risk, high-reward strategy to support your financial goals. The process is as simple as deciding on your account type, filling out the application, funding the account, and regularly routing money into it.

Ready to start saving?

Visit your nearest banking center to talk to one of our local bankers or apply online today!