Key insights:
- A savings account earns interest, helping you build an emergency fund or reach savings goals
- Opening a savings account typically takes just a few steps
- You can open a Citi® Savings account online in a matter of minutes
A savings account can be a great place to store money you don’t need immediately. For example, savings accounts can be ideal places to build emergency funds or save for short-term goals, allowing you to earn interest while keeping your funds easily available for when you need them.
Let’s explore generally how to open a savings account and the benefits of savings accounts.
How to open a savings account in 4 steps
To open a savings account, you generally need to gather the necessary documents as required by your bank, submit your application and transfer funds.
1. Compare rates
It’s important to understand the difference between annual percentage yield (APY) and interest rate. While the APY tells you how much you can earn annually when your interest compounds, the interest rate is the annual rate of interest paid on the original deposit on an account, which does not reflect compounding. When you begin to compare rates, you may see these terms regularly.
2. Gather your documents and personal information
Whether you apply for a savings account in person or online, you’ll need to have certain information available to confirm your identity. You will need to provide:
- Official government ID, like a driver’s license or passport
- Social Security number or individual taxpayer identification number (ITIN)
- Personal details, such as your name, address and email address
3. Submit your application
When you’re ready, you can typically submit your application online or in person at a bank branch.
4. Fund your savings account
Once your account is open, you can start contributing funds. If the bank has a minimum opening deposit requirement, you may need to provide a minimum opening balance at this time, though not all savings accounts have this requirement.
A Citi Savings account does not have a minimum opening deposit requirement, but accounts that maintain a zero balance for 90 calendar days are subject to closure.
Open a Citi® Savings account online
At Citi, it’s easy to open a savings account online. You simply need to provide your basic personal information, choose your funding option and submit your online application. Once approved, you may make a mobile check deposit or transfer funds from a linked account.
Should you open a savings account?
While checking accounts are designed for day-to-day withdrawals and transfers, savings accounts can be good places to build your savings for an emergency fund or another financial goal.
There are 2 key reasons to open a savings account:
- A savings account can provide a more accessible option to earn interest than something like a certificate of deposit (CD), which typically requires you to keep money in the account for a set period
- You can keep some funds separate from your checking account, minimizing the temptation to spend money you’re trying to save
Opening a savings account can be a simple process, whether you apply online or in person. Once you open your account, you may consider setting up automatic transfers to your savings account to make consistent progress toward your financial goals.
Disclosure: This article is for general educational purposes. It is not intended to provide financial advice. It also is not intended to completely describe any Citi product or service. You should refer to the terms and conditions financial institutions provide for various products.
