According to a 2019 survey, 95 percent of U.S. households were banked. Therefore, it is almost certain that one day you or a loved one will end up going to a bank. Whether it is a physical brick-and-mortar building or a digital one is up for discussion.
The Federal Deposit Insurance Corporation (FDIC) also found that this is the highest percentage since the survey was first conducted in 2009. This is a short period, but it is clear that many people are now becoming bank-savvy.
If you don’t have a bank account yet, you may be wondering, “How do I withdraw money from banks?” Here, we’ll attempt to help you do just that by explaining all the different elements involved in withdrawing cash from banks.
Basics About Banking
Banks work by a federal and state-regulated mandate that requires specific laws to be adhered to. Here, we’ll briefly break down the most critical information for someone with a simple personal bank account.
Check out the IRS website for more detailed instructions for businesses, self-employed individuals, and other financial options.
Laws and Regulations
The FDIC Law, Regulations, and Related Acts provides an official, technical definition of what counts as a bank account. They also have customer identification requirements that protect against identity theft, terrorism, and money laundering. For the complete text, visit the FDIC website here.
The bank is also required to report suspicious transactions involving but not limited to funds derived from illegal activities, a transaction designed to evade authorities, and transactions that have no business or apparent lawful purpose customarily expected for the individual.
Taxes and the IRS
The Taxpayer Bill of Rights is a document seldom appreciated. Still, it is essential to cover it briefly as the IRS can review all bank information linked to your Social Security number.
This bill simply outlines your rights as a taxpayer and what you can expect and demand from the Internal Revenue Service. Though the IRS cannot see every transaction you make, you will be asked about larger and suspicious transactions on your account if audited.
Opening an Account
As stated above, the FDIC has a set of documents and checks requiring an individual to open a bank account. If you do not have these minimum requirements, you will be denied an account.
Documentation/Information Required
- Name
- Date of Birth
- Address
- US Taxpayer identification number OR passport, alien ID, or other govt. issued ID
- Driver’s License or State I.D.
- Social Security Card
- Telephone Number/Email
Which Bank Suits Me?
All banks are different, and it is tough to decide which one suits your needs. Generally, you want something local, able to handle your individual and investment needs. You should always feel comfortable with your choice of a banking institution.
If possible, do some research to determine which banks offer the best interest, investment options, and local investment. This way, you can be sure to choose a bank that is invested in the community you belong to.
How to Withdraw Money From Current Account
The most important feature of a bank account is the option to hold and withdraw your funds. Now that you’ve got your account open, you’re ready to withdraw some of that hard-earned money.
Withdrawal Slip
Usually, your bank will issue you three items when you open your account.
A debit card, which will come in the mail in a matter of days, a bank card with your bank account information on it, and a booklet of bank withdrawal slips and checks. In some institutions, checks and slips are being eliminated in favor of the debit card option.
Withdrawal slips are usually filled out and denote to the bank teller which accounts you’d like to withdraw the written amount of money off of. It is a paper trail for both yourself and the bank. Make sure you have this ready if you are still waiting on your debit card, so you don’t have to worry about how to withdraw money from bank teller.
Of course, some banks will skip this step altogether and just ask for your photo I.D. This is fast, but the bank teller will still have to fill out a formal withdrawal slip for their records.
Banking Information
That bank card, sometimes like a business card, will have your banking information on it, and it is vital to keep track of it for a few good reasons.
Firstly, you will need the bank account and routing number (also available on your paper checks) to set up direct deposits or link your physical bank account with online accounts such as Paypal or Payoneer.
You will also need this information if you have more than one account, such as savings or investment accounts. It is essential to know this in case you cannot physically get to your bank or have your checkbook handy.
Drive-Thru vs. Lobby
The lobby is sometimes an old-fashioned idea now, most people opting for the drive-thru to deposit money. Rarely do people interact with bank tellers when they use their debit card at home or the ATM.
This is just a personal preference, but for a more social experience, you could consider reminding your bank tellers what you look like without the pane of glass and plastic tubes of air.
Debit Card Detour
The debit card detour is the simplest and most common way Americans get a hold of cash. You simply use your plastic card to withdraw up to the daily limit set by the bank at any ATM. Your own bank’s ATM is free to use, and others charge a surcharge.
Reasons to Opt for a Debit Card
- Accessibility is almost limitless
- Online purchases
- ATM Withdrawals
- Accepted by virtually every retailer/restaurant
- Online Banking
In Summary
Most banks have relatively similar guidelines to the ones we discussed above, but be sure to talk to a teller at your local branch to ensure you fill out any required forms and follow their correct process. Learning how to withdraw money from banks may seem intimidating at first, but it will become a matter of routine before you know it.
