What you need to open a bank account
To open a bank account, you need a government-issued ID, proof of your current address, and your Social Security number or ITIN. Most banks also ask for an initial deposit, though the amount varies—some require $25, others $300 or more. A few banks have no minimum, but they may charge monthly fees instead.
The process itself takes 15 to 30 minutes in person or 10 to 20 minutes online, depending on the bank. You'll answer questions about your employment and income, and the bank will run a check through ChexSystems, a database that tracks banking history. This check does not affect your credit score.
If you don't have a government ID yet, you'll need to get one first—a driver's license, state ID card, or passport. If you don't have proof of address, a recent utility bill, lease, or mortgage statement works. Without a Social Security number, you can use an ITIN (Individual Taxpayer Identification Number), which you get from the IRS.
Key Takeaways
- You need a government ID, proof of address, and a Social Security number or ITIN to open an account at any bank.
- Most banks require an opening deposit that ranges from $0 to $300, depending on the institution and account type.
- Opening an account online takes 10 to 20 minutes; in person takes 15 to 30 minutes.
- The bank's ChexSystems check looks at your banking history, not your credit, and does not lower your credit score.
- If you've been denied before, some banks specialize in second-chance accounts and may overlook past issues.
Opening an account in person at a branch
Walk into any branch with your ID, proof of address, and Social Security number. Tell the banker you want to open a checking or savings account—they'll ask which one. Bring your checkbook or debit card preference information if you have preferences, though the bank will issue these after opening.
The banker will hand you forms to sign. Read them. They cover the account rules, fee schedules, and what happens if your account goes negative. Ask about monthly fees, overdraft charges, and minimum balance requirements before you sign. Once you sign, the account opens when ready, though it may take one business day for the system to fully set up.
If you want to deposit money right away, you can do that at the teller window. If you're opening online, you'll transfer money from another account or arrange a wire transfer instead.
Opening an account online
Go to the bank's website and look for "Open an Account" or "Sign Up." You'll enter your name, address, phone number, email, and Social Security number. The bank will ask about your employment and income—answer honestly, as they verify this information. Upload a photo of your ID and proof of address using your phone or computer.
The bank reviews your documents and runs the ChexSystems check. This usually takes a few minutes to a few hours. Once approved, you'll set up a username and password, and your account is live. You can then transfer money from another bank account to fund it, or wait for a check you deposit through mobile deposit to clear.
Some banks send a debit card by mail within 5 to 10 business days. Others issue a temporary card number you can use online when ready. Check the bank's website to see which applies to you.
What happens if the bank denies you
Banks use ChexSystems to check your history. If you've had accounts closed due to unpaid fees, fraud, or too many overdrafts, the bank may deny you. You can request your ChexSystems report for free at www.chexsystems.com to see what's on file. If there's an error, you can dispute it.
If you're denied, some banks offer second-chance accounts. These are designed for people with banking problems in their past. They often have higher fees and lower limits on how much you can spend or deposit, but they let you rebuild your banking history. Credit unions sometimes offer these accounts too, and their requirements are often less strict than large banks.
You can also ask the bank that denied you what specific issue caused the denial. Sometimes it's fixable—if you owe fees from a closed account, paying them off can clear the way for a new account at the same bank.
Types of accounts and what they cost
A checking account is for regular spending. You get a debit card and checks, and you can set up automatic bill payments. Most checking accounts have a monthly fee of $0 to $15, though some waive the fee if you keep a minimum balance or set up direct deposit.
A savings account is for money you're setting aside. You earn interest on the balance, though the rate is usually very low—often less than 1 percent per year. Savings accounts typically have no monthly fee, but some limit how many times you can withdraw per month.
A money market account combines features of both: you earn interest like a savings account, but you can write checks and use a debit card like a checking account. These usually require a higher opening deposit and higher minimum balance.
| Account Type | Best For | Typical Monthly Fee | Typical Opening Deposit |
|---|---|---|---|
| Checking | Daily spending and bills | $0–$15 | $0–$300 |
| Savings | Setting money aside | $0–$5 | $0–$100 |
| Money Market | Higher interest with check-writing | $0–$25 | $1,000–$2,500 |
Banks versus credit unions
Banks are for-profit institutions. Credit unions are member-owned nonprofits. Both offer checking and savings accounts, but credit unions often have lower fees and higher interest rates on savings. The trade-off is that credit unions have fewer branches and ATMs.
To join a credit union, you usually need to meet a membership requirement—living in a certain area, working for a certain employer, or belonging to a certain organization. Some credit unions have no requirement at all. You can search for credit unions near you at www.co-opnetwork.org or www.alliantcreditunion.org.
Both banks and credit unions are insured by the federal government. Bank accounts are insured by the FDIC (Federal Deposit Insurance Corporation) up to $250,000. Credit union accounts are insured by the NCUA (National Credit Union Administration) up to the same amount. This means if the institution fails, your money is protected.
What to do after you open your account
Set up direct deposit if your employer offers it. This moves your paycheck into your account automatically, usually one day before payday. You'll need to give your employer your account number and routing number, which you'll find on the bottom left of your first check or in the bank's app.
Link your account to your phone through the bank's app. This lets you check your balance, deposit checks by taking a photo, and set up alerts if your balance drops below a certain amount. Most banks' apps are free.
Review your account agreement and fee schedule. Know what triggers overdraft fees, what the monthly fee is, and how to avoid it. If you're not using the account, close it to avoid being charged fees on an empty account.
Frequently Asked Questions
Can I open a bank account without a Social Security number?
Yes. If you have an ITIN (Individual Taxpayer Identification Number) from the IRS, most banks will accept it instead. Some banks are stricter than others, so call ahead to confirm. Credit unions are sometimes more flexible on this requirement.
How long does it take to use my account after I open it?
Your account is active when ready after you open it, whether in person or online. You can use your debit card right away if the bank issues a temporary number. If you're waiting for a physical card by mail, it usually arrives within 5 to 10 business days. Checks you deposit take 1 to 5 business days to clear.
What if I don't have proof of address?
A recent utility bill, lease agreement, mortgage statement, or government mail with your name and address works. If you have none of these, some banks accept a letter from a shelter, social service agency, or government office confirming your address. Call the bank first to ask what they'll accept.
Do I need to keep a minimum balance?
It depends on the bank and account type. Some accounts waive monthly fees if you keep a minimum balance—often $500 or $1,000. Others waive fees if you set up direct deposit instead. Read the fee schedule before you open to know what applies to you.
What happens if my account goes negative?
The bank charges an overdraft fee, usually $25 to $35 per transaction. If your account stays negative, you may be charged multiple fees per day. The account can be closed if it stays negative for 30 to 60 days. To avoid this, set up low-balance alerts in your bank's app so you know before you overspend.