What happens when you walk into a bank to open an account

Opening a bank account is a straightforward process that usually takes 15 to 30 minutes. You will bring a form of identification, answer questions about yourself, choose the type of account you want, and sign paperwork. The bank will then create your account, give you a debit card (which may arrive by mail a few days later), and provide you with account numbers and online banking information.

The exact steps vary slightly between banks, but the core process is the same everywhere. You do not need to have had a bank account before, and you do not need to start with a large deposit. Many banks let you open an account with as little as $1 or $25, though some have no minimum at all.

Key Takeaways

  • You will need a government-issued photo ID (driver's license, passport, or state ID card) and proof of your current address to open an account.
  • Banks ask for your Social Security number or Individual Taxpayer Identification Number so they can report interest you earn and check for fraud.
  • Choosing between a checking account (for everyday spending) and a savings account (for money you want to keep) is the first decision you will make.
  • If you have had banking problems in the past, some banks specialize in second-chance accounts that do not require a clean banking history.
  • You can open an account in person at a branch, by phone, or online, depending on the bank and the type of account.

Documents you will need to bring

Bring one form of government-issued photo identification. A driver's license, state ID card, or passport all work. If you do not have a photo ID, some banks will accept a combination of documents — ask ahead of time what they will take.

You will also need to show proof that you live at your current address. A utility bill, lease, mortgage statement, or government mail with your name and address will work. The document usually needs to be dated within the last 60 days, though this varies by bank. If you are homeless or do not have a current address, some banks have programs for this — call ahead and explain your situation.

Bring your Social Security number or Individual Taxpayer Identification Number (ITIN). The bank needs this to report interest you earn to the IRS and to check whether you have unpaid debts or fraud on your record. If you do not have a Social Security number or ITIN, ask the bank whether they can open an account without one — some can, though it is less common.

What the bank will ask you

The bank will ask your full name, date of birth, phone number, and email address. They will ask whether you have had a bank account before and, if so, at which banks. They will ask about your employment and income, though the answer does not usually determine whether you can open an account — they are gathering information for their records.

If you have had banking problems in the past — a closed account, unpaid fees, or fraud — the bank may ask about this. Do not lie. If you had problems, say so. Many banks have second-chance accounts specifically for people with banking history issues. If the bank you are at does not, they can often refer you to one that does.

The bank will ask what you plan to use the account for and how much money you expect to deposit each month. Again, this is informational. There is no "right" answer that will get you approved or rejected.

Checking versus savings: which account to choose

A checking account is for money you use regularly. You get a debit card to spend it, checks to write, and the ability to set up automatic payments for bills. Most checking accounts earn little or no interest on the money you keep in them.

A savings account is for money you want to keep and grow. You earn interest on the balance — meaning the bank pays you a small percentage of your money each month or year. You can usually withdraw money from a savings account whenever you want, but some accounts limit how many withdrawals you can make per month without a fee.

Many people open both at the same time: a checking account for everyday expenses and a savings account for emergency money or goals. You can start with just one and add the other later. If you are not sure which you need, tell the bank employee what you plan to do with the money, and they can recommend an account type.

Opening an account in person, by phone, or online

Most banks let you open an account in person at a branch. This is often the easiest route if you are new to banking, because a bank employee can answer questions as you go and help you understand the paperwork.

Many banks also let you open an account online through their website. You upload photos of your ID and proof of address, answer the same questions, and sign electronically. This usually takes 10 to 20 minutes and you can do it from home. Some online banks (banks with no physical branches) only offer online account opening.

A few banks let you open an account by phone. You call a number on their website, speak to a representative, and they walk you through the process. You will still need to send in photos of your documents, usually by uploading them online or mailing them.

What happens after you open the account

The bank will give you your account number and routing number on the spot or by email. You will receive a debit card by mail within 5 to 10 business days. You will also get online banking login information so you can check your balance and move money from a computer or phone.

Some banks give you a temporary debit card number you can use online right away while you wait for the physical card. Ask whether yours does.

You can start depositing money when ready. You can do this by transferring money from another bank account, depositing cash or checks at an ATM or branch, or having your employer or another person send money directly to your account (if you give them your account and routing numbers).

Second-chance accounts if you have banking history issues

If you have had a bank account closed because of unpaid fees, fraud, or repeated overdrafts, some banks will not open a new account for you. Your banking history is tracked in a system called ChexSystems. When you explore for an account, most banks check this system.

Some banks specialize in second-chance accounts for people with ChexSystems records. These accounts may have higher fees, lower balance limits, or fewer features than standard accounts, but they let you rebuild your banking relationship. Chime, LendingClub, and some credit unions offer second-chance options. Ask the bank you are interested in whether they work with people who have ChexSystems records.

You can also request your own ChexSystems report to see what is on file. Go to www.chexsystems.com and follow their process for ordering a report. If there is an error, you can dispute it.

Frequently Asked Questions

Do I need a minimum deposit to open an account?

Most banks do not require a minimum deposit to open an account, though some ask for $1 to $25 to get your free guide. A few banks have no minimum at all. When you call or visit, ask what the minimum is for the account type you want.

What if I do not have a Social Security number?

If you have an Individual Taxpayer Identification Number (ITIN), you can use that instead. If you have neither, some banks and credit unions will open an account without one, though it is less common. Call ahead and ask whether the bank you want to use can do this.

How long does it take to open an account?

In person, it usually takes 15 to 30 minutes. Online, it takes 10 to 20 minutes. By phone, it takes 20 to 40 minutes because you have to mail or upload documents afterward. You can usually start using the account the same day, though your debit card arrives by mail a few days later.

Can I open an account if I have been banned from banking before?

Yes. Second-chance accounts are designed for people in this situation. Credit unions and some online banks are often more willing to work with people who have banking history problems than large national banks are. Call ahead and explain your situation honestly.

What if I make a mistake on the paperwork?

Tell the bank employee right away. They can usually correct it on the spot or have you sign a corrected version. Do not try to fix it yourself after you leave — contact the bank and ask them to make the change in their system.