What happens when you open a checking account

Opening a checking account means you walk into a bank or credit union, give them some information about yourself, and they create an account where you can deposit money, write checks, and use a debit card. The bank keeps your money safe and lets you access it whenever you need it. You do not need to have a lot of money to start — most accounts let you open with $25 or even less.

The process takes about 30 minutes in person, or sometimes longer if you do it online. The bank will ask you questions to verify who you are, check a database called ChexSystems to see if you have had problems with banks before, and then set up your account. Once it is open, you can start using it the same day or within a few business days, depending on the bank.

Key Takeaways

  • You will need a government-issued photo ID, proof of your address, and your Social Security number or ITIN to open an account.
  • Banks check ChexSystems, a database of banking history, so past problems with overdrafts or fraud may affect whether you can open an account.
  • Credit unions often have lower fees and more flexible rules than big banks, especially if you are new to banking.
  • You can open an account in person at a branch, by phone, or online, depending on what the bank offers.
  • After you open the account, it usually takes one to three business days before you can use your debit card or write checks.

Documents you need to bring

Bring a government-issued photo ID — a driver's license, passport, or state ID card. This is the one thing every bank will ask for. If you do not have a photo ID, some banks and credit unions will accept other documents, but call ahead to ask what they take.

Bring proof of your address. This can be a utility bill, lease, mortgage statement, or government mail with your name and current address on it. It needs to be recent — usually from the last 60 days. If you just moved and do not have a bill yet, a lease signed by both you and your landlord works.

Have your Social Security number ready, or an ITIN (Individual Taxpayer Identification Number) if you do not have a Social Security number. The bank needs this to report interest you earn and to check your banking history. If you are not sure whether you have an ITIN, bring any tax documents you have.

Bring a small amount of money to deposit — $25 is typical, though some banks ask for more. You can use cash, a check, or a debit card from another bank. This is not a fee; it is your own money going into the account.

What the bank checks before opening your account

The bank will run your name and Social Security number through ChexSystems, a database that tracks banking problems. ChexSystems records things like unpaid overdrafts, fraud, or accounts closed because of too many bad checks. If you have had problems at another bank, ChexSystems will show it.

If ChexSystems shows a problem, the bank may still open your account, but they might charge higher fees, require a larger deposit, or refuse you altogether. You have the right to see what ChexSystems says about you — you can order a free report at chexsystems.com. If something on the report is wrong, you can dispute it.

Some banks also check your credit report, though many do not. A checking account is different from a credit card or loan, so a low credit score usually does not stop you from opening one. If a bank refuses you because of your credit, ask them to explain in writing — they are required to tell you why.

Opening an account in person at a branch

Walk into any branch of the bank or credit union you chose. Tell the person at the desk that you want to open a checking account. They will take you to a desk, ask you the questions above, and enter your information into their computer. This usually takes 15 to 30 minutes.

The banker will show you the account options — different checking accounts have different fees and features. Ask about accounts with no monthly fee, no minimum balance, and no overdraft fees. Many banks offer these now, especially for people new to banking. Do not let them talk you into features you do not need.

Once you agree on an account type, you will sign papers and make your first deposit. The banker will give you a temporary debit card or tell you when your card will arrive in the mail. You may be able to use your account online or on your phone right away, even if your physical card has not arrived yet.

Opening an account online or by phone

Many banks let you open an account without going to a branch. You go to their website, fill out a form with your name, address, Social Security number, and ID information, and upload photos of your ID and proof of address. The whole thing takes about 10 minutes.

Some banks will verify your identity by asking you security questions — things only you would know, like past addresses or loan amounts. Others use video verification, where you show your ID to a camera and answer questions in real time. This usually takes a few minutes.

After you finish, the bank will tell you whether your account is open right away or whether they need to review your information. If it is approved, you can deposit money by transferring it from another bank account, mailing a check, or using a mobile app. Your debit card will arrive in the mail within one to two weeks.

What to do after your account opens

Once your account is open, set up direct deposit if your employer or benefit program offers it. Direct deposit means your paycheck or benefit payment goes straight into your account without you having to do anything. Ask your employer or the benefits office for the bank's routing number and your account number — the bank will give you these.

Set up online banking so you can check your balance, transfer money, and pay bills from your computer or phone. The bank will give you a username and password, or let you create one. Write down your username somewhere safe — do not use the same password as other accounts.

Read the account agreement the bank gave you, especially the part about overdraft fees. An overdraft happens when you spend more money than you have in the account. Some banks charge $30 or more per overdraft. Many banks now let you turn off overdraft protection so you straightforward cannot spend money you do not have — ask your bank about this.

Order checks if you need them. You can order checks from the bank, or from cheaper online companies like Costco or Walmart. Checks usually cost $10 to $20 per box of 200. You do not need checks right away — a debit card works for most things.

Banks and credit unions to consider

Big banks like Chase, Bank of America, and Wells Fargo have branches everywhere, but they often charge monthly fees and have high overdraft fees. They are easiest if you travel a lot or need to deposit cash at a branch.

Credit unions are member-owned, not-for-profit organizations. They usually charge lower fees, have friendlier customer service, and are more willing to work with people new to banking. You have to be a member to use them — membership is often free or costs a few dollars. Find a credit union near you at co-opsharedbranch.org or at your local library.

Online banks like Ally, Charles Schwab, and Discover have no branches but very low fees and good customer service. They work well if you do not need to deposit cash in person. Some let you deposit checks by taking a photo with your phone.

Frequently Asked Questions

Can I open a checking account if I have had problems at another bank?

Maybe. If ChexSystems shows a problem, some banks will still open an account for you, but may charge higher fees or require a larger deposit. Credit unions are often more flexible than big banks. Call ahead and ask whether they work with people who have ChexSystems records.

What if I do not have a Social Security number?

You can use an ITIN instead. Some banks also accept a passport number or other government ID number. Call the bank before you go in and ask what they accept. If you do not have any of these, some credit unions will work with you — ask.

How long does it take to use my debit card after I open the account?

If you open in person, you may get a temporary card the same day or within a few days. If you open online, your card arrives by mail in one to two weeks. Most banks let you use your account online or on your phone right away, even before your physical card arrives.

Do I have to keep a minimum balance in my checking account?

Not anymore — many banks have stopped requiring minimum balances. When you are choosing an account, ask whether there is a minimum balance requirement. If there is, ask what happens if you fall below it — some banks charge a fee, others close the account.

What is the difference between a checking account and a savings account?

A checking account is for money you use regularly — you can write checks, use a debit card, and make unlimited withdrawals. A savings account is for money you want to keep and earn interest on — you can only withdraw a few times per month. Most people open both, but you can start with just a checking account.