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 how to open a savings account step by step and the benefits of savings accounts.
How to open a savings account in 3 steps
To open a savings account, you generally need to gather the necessary documents, submit your application and transfer funds.
1. 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
2. Submit your application
It's important to understand the difference between APY and interest rates. 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 an account, which does not reflect compounding. When you begin to compare rates, you may see these terms regularly.
3. Fund your savings account
Once your account is open, you can start contributing funds. You may need to meet a minimum opening balance at this time, though not all savings accounts have this requirement.
How to 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.
You can also open a Citi savings account at your nearest branch or over the phone by calling 1-800-321-2484 (TTY: Citi accepts 711 or other Relay Service).
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 many reasons to open a savings account:
- Savings accounts can provide a more accessible option to earn interest than something like a CD, which typically requires you to keep money in the account for a set period.
- Savings accounts can help you separate checking and savings account funds, 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.
