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

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

When considering banking options in Louisiana, understanding the differences between checking and savings accounts is crucial. This article will explore the available bank types, account features, fees, onboarding processes, and considerations for residents versus non-residents.

Available Bank Types in Louisiana

In Louisiana, consumers have a variety of banking options, including:

National BanksNational banks like Bank of America, Wells Fargo, and Chase offer a broad range of services, including checking and savings accounts. These banks generally have extensive ATM networks and online banking features, making them convenient for everyday transactions.

Regional BanksRegional banks, such as Hancock Whitney Bank and IberiaBank, provide personalized services and may have more localized offerings tailored to Louisiana residents. They typically have a physical presence in the state, making them an attractive option for those who prefer in-person banking.

Digital BanksDigital banks like Chime and Ally Bank are gaining popularity due to their user-friendly apps and competitive interest rates. They often have lower fees than traditional banks, but may lack physical branches, which can be a consideration for some customers.

Account Types: Checking vs. Savings

Checking AccountsChecking accounts are designed for everyday transactions. They typically feature:

- Features: Debit card access, online bill pay, and mobile banking.
- Fees: Monthly maintenance fees can range from $0 to $15, depending on the bank and the account type. Many banks waive these fees if a minimum balance is maintained or if direct deposits are set up.
- Minimum Deposit: Initial deposits can vary but often range from $25 to $100.

Savings AccountsSavings accounts are intended for saving money over time and usually offer:

- Features: Interest earnings on the deposited funds, limited transactions (typically six per month).
- Fees: Monthly fees may apply, usually between $0 and $10, but can often be waived with a minimum balance.
- Minimum Deposit: Initial deposits often range from $50 to $300.

Typical Fees and Minimums

Fees and minimum balance requirements can vary widely among banks. Here’s a general overview:

- Monthly Maintenance Fees: $0 to $15 for checking accounts; $0 to $10 for savings accounts.
- Overdraft Fees: Typically range from $30 to $40 per transaction.
- ATM Fees: Out-of-network ATM fees can be around $2.50 to $5 per transaction.
- Minimum Deposit Requirements: $25 to $100 for checking accounts; $50 to $300 for savings accounts.

It is essential to read the fine print and understand the fee structure before applying for an account.

Onboarding Steps: KYC, SSN, ITIN, EIN

When opening a bank account in Louisiana, banks must comply with Know Your Customer (KYC) regulations. Here’s what you need to know about the onboarding process:

Required Documentation1. Social Security Number (SSN): Required for U.S. citizens and residents.2. Individual Taxpayer Identification Number (ITIN): Used for non-resident aliens who cannot obtain an SSN.3. Employer Identification Number (EIN): Required for business accounts.4. Proof of Identity: A government-issued ID, such as a driver’s license or passport.5. Proof of Address: Documents such as a utility bill or lease agreement may be needed.

Application ProcessThe application process typically involves the following steps:

1. Online or In-Person Application: You can apply online through the bank’s website or visit a local branch.
2. Review Application: The bank will review your application and submitted documents.
3. Account Funding: You may be required to make an initial deposit to activate the account.
4. Account Setup: After approval, you’ll receive account details and access to online banking features.

Resident vs. Non-Resident Notes

ResidentsResidents of Louisiana generally find it easier to open both checking and savings accounts. They typically have the required documentation readily available, such as an SSN and proof of residency.

Non-ResidentsNon-residents may face additional challenges when opening bank accounts. Some banks may have stricter requirements and may not offer accounts to non-residents. Those who can open an account will likely need an ITIN, proof of foreign residency, and may be subject to higher fees or minimum balance requirements.

FAQs

1. What is the main difference between checking and savings accounts?Checking accounts are designed for frequent transactions, while savings accounts are intended for saving money and earning interest.

2. Are there any banks in Louisiana that offer no-fee accounts?Yes, several banks and credit unions in Louisiana offer no-fee checking and savings accounts, especially if you meet certain conditions, such as maintaining a minimum balance or setting up direct deposit.

3. Can non-residents open a bank account in Louisiana?Yes, but they may face additional requirements and not all banks will allow it. Non-residents typically need an ITIN and additional documentation.

4. What fees should I expect when opening a bank account?Common fees include monthly maintenance fees, overdraft fees, and ATM charges. It's important to review the fee structure before opening an account.

5. How do I avoid monthly maintenance fees?You can often avoid monthly fees by maintaining a minimum balance, setting up direct deposits, or meeting other bank-specific criteria.

6. What documents do I need to open a bank account?You will generally need a government-issued ID, proof of address, and either an SSN or ITIN.

7. Is online banking available for all accounts?Most banks offer online banking for both checking and savings accounts, but it’s advisable to confirm with the specific bank about their digital features.

Understanding your banking options in Louisiana is essential for making informed decisions about your finances. Whether you choose a checking or savings account, be sure to compare fees, features, and requirements to find the best fit for your needs.

About the Author

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