Banking Guide for New Residents in Atlanta
If you’re new in Atlanta, you might have questions about the banking system. This is an important concern given the fact that each state has regulations that might differ from other states. Therefore, to get you up to speed, we’ll guide you through the basics of the banking system in Atlanta.
Table of Contents
Types of Banking Institutions
In Atlanta, three major types of institutions provide banking services. In this section, we’ll review these options to enable you to choose one. Let’s begin.
Commercial Banks
These are stock corporations with the sole purpose of making a profit which keeps their shareholders happy. You can visit https://www.upcounsel.com/ to find out more about stock corporations. These institutions receive deposits from individuals and businesses and store them in different types of accounts. They also offer loans and carry out the transfer of funds.
The loans they offer are mostly short-term, however, they provide mortgages and consumer loans as well. Depending on their corporate charter, they are either regulated by Federal laws or State laws. For state-chartered corporations, they are regulated by both.
Thrifts
Thrifts, also known as Savings Banks, focus on real estate loans. The ownership might be stock or mutual. Initially, these institutions only offered savings accounts. In recent times, they’ve gotten more financial authority to receive deposits and offer mortgages, and consumer and business loans.
Credit Unions
This type of institution is usually owned and run by a group of individuals who use their money to establish the deposit base of the union. These individuals share a common bond such as being employees in an organization, living in a particular community, attending the same church, etc. As a result of this, many of them aren’t open to the public, but only individuals who share the same bond can become members.
They have the financial power to receive deposits in different accounts. Furthermore, credit unions provide their customers with savings accounts just like thrifts. If the union is big, they can also offer customers money market and checking accounts.
To put it plainly, credit unions can provide all the services banks and thrifts provide. Some can even provide loans including auto loans, mortgages, etc. A good example of such is Excel FCU Atlanta banking which provides customers with auto loans and mortgages. Since they are regarded as nonprofit institutions, they do not pay federal tax and may even get free supplies or space as subsidies.
Types of Bank Accounts
To open a new account in Atlanta, there are two main types you can choose from. Some banks offer special accounts designed to meet the special needs of individuals and businesses. In this section, we’ll only focus on the two main types to help you decide. If you have special needs that warrant having a special account, you can reach out to the customer service of different banks to find out what special accounts they offer.
Checking
If your banking needs require regular everyday use where you need to pay bills and deposit checks, then this option will suit you just fine. Each bank varies with respect to how much interest they pay on your balance, monthly fees, and the minimum balance you must maintain. Therefore, you need to compare offers from different financial institutions to determine which is best for you.
With this account, you can receive paycheck deposits on your payday. This saves you the stress of going to your chosen financial provider. Furthermore, you can carry out electronic payments to pay off your bills.
Savings
If you’re looking for an account to save money for future use and get interest on the savings in the process, then you need to choose this option. The nature of this account means it is meant for regular withdrawals. If you have an issue with your banking history or credit that might have prevented you from opening a checking bank account, you can also use this alternative.
As we said, this account is not meant for regular withdrawals. If you make withdrawals as if it is a checking account, you’ll have to pay extra fees for the transactions you make. In some cases, if you continue making frequent withdrawals, the bank may change the account or even close it completely.
Easy Steps to Open an Account
Once you’ve chosen a financial institution to bank with, these are the steps required to open an account:
- Submit the Required Identification: You’ll need to submit a photo passport and an ID card. Most banks are okay with driver’s permits. Find out from the bank what identification forms they accept.
- Make a deposit: If the account you want to open requires a minimum balance, you’ll have to make a deposit. If it doesn’t, you can choose to skip the deposit, although it’s advisable to make the deposit to maintain a minimum balance. You can read this article to find out why it is important to maintain a minimum balance. You can do this via check or cash.
- Credit History Check: Before the process is finalized, the bank will gain your approval to check your financial credit history. If there are issues with it, you might be denied the account especially if it’s a checking account. On the other hand, if the history is good, you’ll get the account open and ready for use.
Conclusion
Banking is an integral part of our modern life. Moving to a new place like Atlanta can make one nervous regarding one’s finances. In this article, we’ve provided you with a basic guide to the baking process in Atlanta to put your mind at ease.
