The main places to open a checking account
You can open a checking account at a traditional bank branch, a credit union, or an online-only bank. Each route has different requirements, different fees, and different ways you actually hand over your money to start. The choice depends on what you need from the account — whether you want to walk into a physical location, whether you need a low opening deposit, and what fees matter most to you.
A traditional bank like Chase, Bank of America, or Wells Fargo has physical branches where you can deposit cash and talk to someone in person. A credit union is a member-owned nonprofit that often has lower fees and better interest rates, but membership is restricted — you have to work for a certain employer, live in a certain area, or belong to a certain organization. An online bank like Ally, Charles Schwab, or Chime has no branches but typically charges no monthly fees and no minimum balance.
The fastest way to open an account is online, which takes 10 to 15 minutes and requires a government ID and a Social Security number. Opening in person at a branch takes longer — usually 30 minutes to an hour — but you can deposit cash when ready and ask questions face-to-face.
Key Takeaways
- Traditional banks offer in-person service and cash deposits but often charge monthly fees unless you meet balance or direct deposit requirements.
- Credit unions typically have lower fees and better rates than banks, but you must meet membership requirements specific to each credit union.
- Online banks charge no monthly fees and have no minimum balance, but you cannot deposit cash at a branch and must use ATMs or mobile deposit.
- Opening an account online takes 10 to 15 minutes with an ID and Social Security number; opening in person takes 30 minutes to an hour.
- Some banks and credit unions report accounts to ChexSystems, a checking account history database, so a prior account closure or fraud report can block you from opening elsewhere.
Traditional banks and what they cost
A traditional bank charges a monthly maintenance fee unless you meet certain conditions. Those conditions vary widely: some banks waive the fee if you keep a minimum balance (often $500 to $1,500), others if you set up direct deposit, and others if you maintain a savings account with them. Some banks charge nothing at all. You need to ask or read the fee schedule before you open.
The advantage of a traditional bank is that you can walk in and deposit cash, withdraw cash, and talk to someone if something goes wrong. You also have access to thousands of ATMs nationwide if you choose a large bank. The disadvantage is that monthly fees add up — $12 a month is $144 a year — and overdraft fees can be steep, often $30 to $35 per overdraft.
To open an account at a traditional bank, you need a government-issued ID, your Social Security number, and usually an opening deposit of $25 to $100. Some banks ask for a second form of ID or proof of address. You can open in person at a branch or online through the bank's website.
Credit unions and membership requirements
A credit union is owned by its members, not by shareholders, so profits go back to members in the form of lower fees and higher savings rates. Credit unions typically charge no monthly maintenance fee and no overdraft fees, though they may charge a small fee for services like wire transfers. The catch is that you must be a member to open an account, and membership is restricted.
Membership requirements depend on the credit union. Some require you to work for a specific employer — for example, a credit union might serve only employees of a hospital system or a government agency. Others require you to live in a certain county or zip code. Still others require you to be a member of a specific organization, like a union, a professional association, or a religious group. A few credit unions have opened membership to anyone, but most do not.
To find a credit union you can join, search the CO-OP network or Shared Branch network websites, which list credit unions by location and membership criteria. You can also ask your employer or your union representative whether they sponsor a credit union. Once you confirm you are may be able to access, opening an account works the same way as at a bank: bring an ID, your Social Security number, and an opening deposit of $25 to $100.
Online banks and what you give up
An online bank has no physical branches, which means you cannot walk in to deposit cash or withdraw money. Instead, you deposit checks using your phone's camera — you photograph the front and back of the check and the bank deposits it within one to two business days. You withdraw cash at ATMs, either the bank's own ATM network or third-party ATMs, sometimes with a fee.
The trade-off is worth it for many people because online banks charge no monthly maintenance fee, no minimum balance, and often no overdraft fees. Some online banks, like Chime and Varo, offer early direct deposit, which means your paycheck hits your account one or two days before payday. Interest rates on savings accounts are also higher at online banks than at traditional banks.
Opening an account at an online bank takes 10 to 15 minutes on your phone or computer. You need a government ID, your Social Security number, and sometimes a small opening deposit — though many online banks require nothing. The bank verifies your identity by asking questions about your credit history or by checking your ID against a database.
What happens if you have been denied before
If you have had a checking account closed by a bank or if fraud was reported on an account, that information stays in ChexSystems, a checking account history database. Banks and credit unions check ChexSystems when you open an account, and a negative mark can block you from opening a new account for up to five years.
If you have been denied, ask the bank or credit union which reason they cite — account closure, fraud, unpaid fees, or something else. You can request your ChexSystems report for free at chexsystems.com and dispute any errors. If the mark is legitimate, some banks and credit unions offer "second chance" checking accounts designed for people with ChexSystems records. These accounts often have higher fees or lower ATM access, but they let you rebuild your history.
Online banks are sometimes more lenient with ChexSystems records than traditional banks, though policies vary. It is worth contacting the bank directly to ask whether they will open an account for you despite a ChexSystems mark.
Comparing fees across account types
| Account Type | Monthly Fee | Minimum Balance | Overdraft Fee | Cash Deposit |
|---|---|---|---|---|
| Traditional Bank | $5–$15 (often waived) | $500–$1,500 (varies) | $30–$35 | Yes, at branch |
| Credit Union | Usually $0 | Usually $0–$25 | Usually $0 | Yes, at branch |
| Online Bank | $0 | $0 | $0 (most) | No, mobile deposit only |
The table above shows typical fees, but they vary by institution. Before you open an account, read the fee schedule on the bank's website or ask a representative directly. Some banks advertise "no monthly fee" but charge fees for other services — ATM withdrawals outside their network, wire transfers, or account transfers.
When comparing banks, look beyond the monthly fee. A bank with no monthly fee but a $3 ATM fee for out-of-network withdrawals might cost more than a bank with a $5 monthly fee and free ATM access everywhere. The cheapest account depends on how you actually use it.
What you need to bring or provide
To open a checking account in person, bring a government-issued photo ID (driver's license, passport, or state ID) and your Social Security number. Some banks ask for a second form of ID, like a utility bill or a lease, to verify your address. You will also need an opening deposit, usually $25 to $100, though some banks and most online banks require nothing.
If you are opening online, you will need the same ID and Social Security number, but you will provide them digitally. The bank will ask you to photograph your ID or answer security questions to verify your identity. You will also set up a username and password and choose how you want to receive statements — by email or by mail.
If you are opening an account at a credit union, you may also need to show proof of membership — for example, a pay stub if you work for the employer that sponsors the credit union, or a lease if you live in the service area.
How long it takes to start using the account
If you open an account in person at a branch, you can usually start using it the same day. You can deposit cash, receive a debit card, and set up online banking before you leave. Your debit card arrives in the mail within 7 to 10 business days.
If you open online, the account is usually active within a few hours, and you can set up direct deposit or mobile check deposit when ready. Your debit card arrives in the mail within 7 to 10 business days. Some online banks offer a temporary digital card number you can use right away for online purchases.
If you open at a credit union, the timeline is similar to a traditional bank — the account is active the same day, and your debit card arrives within a week or two.
Frequently Asked Questions
Can I open a checking account if I do not have a Social Security number?
Most banks and credit unions require a Social Security number or an Individual Taxpayer Identification Number (ITIN). Some banks in areas with large immigrant populations offer accounts with an ITIN instead. Call ahead to ask whether the bank you want to use will open an account without a Social Security number.
What is the difference between opening online and opening in person?
Opening online is faster — 10 to 15 minutes — and you can do it anytime. Opening in person takes 30 minutes to an hour, but you can deposit cash when ready and ask questions face-to-face. Both routes result in the same account.
Do I have to keep a minimum balance to avoid fees?
It depends on the bank. Traditional banks often waive monthly fees if you keep a minimum balance, usually $500 to $1,500. Credit unions and online banks typically have no minimum balance requirement. Check the fee schedule before you open.
What happens if I close my account and then try to open another one at the same bank?
If you closed the account in good standing — no unpaid fees, no fraud — you can usually open a new account. If the account was closed due to unpaid fees or fraud, the bank may deny you. The bank will check ChexSystems, which records account closures for up to five years.
Can I open a checking account online if I do not have a computer?
Yes. You can open an account on a smartphone using the bank's mobile app or website. You will need a camera to photograph your ID. If you do not have a smartphone, open an account in person at a branch or credit union.