Final answer:
Individuals must meet certain age, identification, and criteria specific to the bank to be eligible to open a bank account. Banks must comply with consumer protection laws and cannot discriminate in their practices. Comparing banks requires examining a variety of factors, including fees, services, convenience, and each institution's reputation.
Step-by-step explanation:
Eligibility for opening a bank account typically requires individuals to meet basic criteria such as being of a certain age (normally 18 years or older, or with a guardian if younger), having a valid form of identification, and meeting any other specific requirements set out by the financial institution. Many banks also consider a person's credit score when deciding to open an account, as it signifies financial reliability. It's important to note that banks are not allowed to discriminate against applicants based on age, race, sex, or marital status, ensuring that the process is fair and equitable.
When comparing three banks in your neighborhood for the best checking account options, one should consider services provided, fees, convenience, and reputation. Creating a criteria chart can help in visualizing which bank offers the most suitable program for your financial needs. While some banks may offer free checking accounts to students, hoping to build long-term customer loyalty, others may cater to different demographics or offer different incentives. Details such as the ease of accessing funds, minimum balance requirements, and any potential perks or rewards should be factored into the decision-making process.
Last but not least, it is essential to understand that when customers deposit money into accounts, these are considered liabilities from the bank's perspective because the institution is required to return these funds upon the customer's request. The Federal Reserve (the Fed) ensures that banks adhere to consumer protection laws and disclose any pertinent information regarding loan distribution.