Checking vs Savings in Illinois, United States: What to Know

# Checking vs Savings in Illinois, United States: What to Know Before You Apply (2025)

When considering banking options in Illinois, it is essential to understand the different types of accounts available and the specific requirements for both residents and non-residents. This guide will provide an overview of checking and savings accounts, the types of banks you can choose from, typical fees, minimum balance requirements, onboarding steps, and FAQs to help you make an informed decision.

Available Bank Types in Illinois

National BanksNational banks operate across the U.S. and often have a vast network of branches and ATMs. Popular national banks in Illinois include:

- Chase Bank
- Bank of America
- Wells Fargo

These banks typically offer a wide range of services, including checking and savings accounts, credit cards, investment options, and more.

Digital BanksDigital or online banks have gained popularity for their user-friendly interfaces and lower fees. They often offer competitive interest rates for savings accounts. Some well-known digital banks include:

- Ally Bank
- Chime
- Marcus by Goldman Sachs

Digital banks do not have physical branches, which allows them to reduce overhead costs and offer better rates on accounts.

Account Types: Checking vs. Savings

Checking AccountsChecking accounts are designed for everyday transactions. They allow for unlimited deposits and withdrawals, making them ideal for managing day-to-day expenses. Key features include:

- Debit Card Access: Most checking accounts come with a debit card for easy access to funds.
- Check Writing: You can write checks to pay bills or make purchases.
- Online Banking: Most banks offer online banking features for managing your account.

Savings AccountsSavings accounts are intended for saving money and earning interest. They typically have limited withdrawal capabilities compared to checking accounts. Key features include:

- Interest Earnings: Savings accounts usually offer interest on your balance, although rates may vary significantly between banks.
- Withdrawal Limits: Federal regulations limit certain types of withdrawals from savings accounts to six per month.

Typical Fees and Minimums

Checking Account Fees- Monthly Maintenance Fees: These can range from $0 to $15, often waived if you maintain a minimum balance or set up direct deposit.- ATM Fees: Using out-of-network ATMs may incur fees ranging from $2 to $5 per transaction.- Overdraft Fees: If you spend more than you have in your account, overdraft fees can range from $30 to $40.

Savings Account Fees- Monthly Maintenance Fees: Similar to checking accounts, these can range from $0 to $10, often waived with a minimum balance.- Withdrawal Fees: Exceeding the federally mandated withdrawal limits may incur fees.

Minimum Balance Requirements- Checking Accounts: Minimum balances can vary from $0 to $1,500, depending on the bank and account type.- Savings Accounts: Minimum balances typically range from $0 to $300.

Onboarding Steps: KYC, SSN, ITIN, EIN

When applying for a checking or savings account in Illinois, you will need to provide certain documentation as part of the Know Your Customer (KYC) process.

For Residents- Social Security Number (SSN): Required for U.S. citizens and residents.- Identification: A valid government-issued ID such as a driver's license or passport.- Proof of Address: Utility bills or lease agreements are generally accepted.

For Non-Residents- Individual Taxpayer Identification Number (ITIN): Non-residents can use an ITIN instead of an SSN.- Identification: A valid passport or foreign government-issued ID.- Proof of Address: Non-residents may need to provide proof of address in their home country or a U.S. address if applicable.

For Businesses- Employer Identification Number (EIN): Required for business accounts.- Business Documentation: Depending on the business structure, additional documentation may be required.

Resident vs. Non-Resident Notes

ResidentsIllinois residents typically find it easier to open bank accounts due to the availability of SSNs and local identification. Most banks provide a full range of services and features tailored to residents.

Non-ResidentsNon-residents may face more challenges in opening accounts, particularly if they lack an SSN. However, many banks now offer accounts specifically designed for non-residents, allowing them to manage their finances while in the U.S. It’s advisable for non-residents to research banks that cater to their unique needs and ensure compliance with U.S. banking regulations.

FAQs

1. Can I open a checking or savings account online?Yes, many banks, including digital banks, allow you to open accounts online. You will need to provide the necessary documentation.

2. What is the difference between a checking and a savings account?A checking account is primarily for daily transactions, while a savings account is designed for saving money and earning interest.

3. Are there any fees associated with checking or savings accounts?Yes, fees can include monthly maintenance fees, ATM fees, and overdraft fees. Always check with your bank for specific fee structures.

4. What identification do I need to open an account?Residents typically need an SSN and a government-issued ID. Non-residents may need an ITIN and a passport.

5. Can non-residents open a U.S. bank account?Yes, non-residents can open U.S. bank accounts, but they may need to provide an ITIN and additional documentation.

6. How can I avoid monthly maintenance fees?You can often avoid fees by maintaining a minimum balance or setting up direct deposit. Check your bank’s specific requirements.

7. What is KYC?KYC (Know Your Customer) is a process used by banks to verify the identity of clients to prevent fraud and ensure compliance with regulations.

In conclusion, understanding the differences between checking and savings accounts, along with the typical fees, onboarding requirements, and nuances for residents and non-residents, will help you make an informed decision when opening a bank account in Illinois.

About the Author

Marks Toms – Editor-in-Chief
Marks oversees editorial policy, compliance, and fact-checking at bankaccountsopen. Read more articles