Start by deciding what you need the account to do

Before you walk into a bank or go online, think about what you actually want the account for. Do you need somewhere to deposit a paycheck? Do you want to build savings? Do you need to pay bills online? Do you want to avoid overdraft fees? The answers change which account makes sense for you.

Most banks offer several types of accounts. A checking account is designed for money you use regularly — deposits, withdrawals, bill payments. A savings account is meant to hold money you're not spending right now, and it usually pays you a small amount of interest (money the bank pays you for letting them use your money). Some accounts combine both. Some accounts charge monthly fees; others don't. Some let you overdraw (spend more than you have) and charge you for it; others block the transaction instead.

Write down what matters most to you: low fees, no overdraft charges, the ability to deposit checks by phone, a branch near your home, online banking, or something else. This list will help you compare options instead of just picking the first one you see.

Key Takeaways

  • Decide what you need the account for — regular spending, saving money, paying bills online — before you start looking, because different accounts are built for different purposes.
  • Banks, credit unions, and online-only banks all offer checking and savings accounts, and they charge different fees and offer different features.
  • You will need a government-issued ID, proof of your address (like a utility bill or lease), and usually your Social Security number to open an account.
  • Many banks let you open an account online or by phone without visiting a branch, though some still require you to come in person.
  • Read the fee schedule before you open the account — monthly maintenance fees, overdraft fees, and ATM fees vary widely and can add up fast.

Understand the three main types of places that offer bank accounts

Traditional banks are what most people think of — they have physical branches where you can walk in, talk to someone, and deposit checks or withdraw cash. They offer checking accounts, savings accounts, and other products. They usually charge monthly fees unless you keep a minimum balance or set up direct deposit. Examples include Chase, Bank of America, Wells Fargo, and thousands of smaller regional banks.

Credit unions are member-owned organizations that work like banks but are run as nonprofits. They often charge lower fees than banks and may offer better interest rates on savings. You have to be a member to use them, but membership is usually open to anyone in a certain geographic area or who works in a certain industry. If you belong to a union, work for a large employer, or live in a particular city, you may already be able to join one.

Online-only banks have no physical branches — you do everything by phone, website, or mobile app. They usually charge no monthly fees and offer higher interest rates on savings because they have lower costs than banks with buildings and staff. The tradeoff is that you can't walk in and talk to someone, and depositing checks usually means taking a photo with your phone or mailing them in. Examples include Ally, Charles Schwab Bank, and Discover Bank.

Each type has real advantages and real limitations. A traditional bank is easiest if you need to deposit cash or checks frequently and want to talk to someone in person. A credit union often costs less if you can join one. An online bank pays you more interest and charges fewer fees, but only if you're comfortable doing everything digitally.

Gather the documents you'll need before you explore

Every bank will ask for the same basic information. Have these things ready: a government-issued photo ID (a driver's license, passport, or state ID card), proof of your current address (a recent utility bill, lease, or bank statement with your name and address on it), and your Social Security number. Some banks also ask for your date of birth and your phone number.

If you don't have a Social Security number, you may be able to open an account with an Individual Taxpayer Identification Number (ITIN) instead, but not all banks accept this. Call ahead and ask before you go in.

If your address on your ID doesn't match where you live now, bring both the old ID and a recent piece of mail showing your new address. Banks need to verify your address for fraud prevention, and they need to know where to send statements and notices.

Compare fees before you decide

Banks make money partly from fees, and these fees can be the difference between an account that costs you nothing and one that costs you $100 or more per year. Before you open an account, ask about or look up the fee schedule. The main fees to watch for are:

  • Monthly maintenance fee: Some banks charge $5 to $15 per month just to have the account open. Many waive this fee if you keep a minimum balance (often $500 to $1,500) or set up direct deposit.
  • Overdraft fee: If you spend more money than you have in the account, the bank charges you a fee — usually $25 to $35 per overdraft. Some banks let you overdraw; others block the transaction. Some charge a fee every day you're overdrawn; others charge once per transaction.
  • ATM fee: If you use an ATM that doesn't belong to your bank, you may pay $2 to $3 per withdrawal. Some banks reimburse these fees; others don't.
  • Wire transfer fee: Sending money to another bank costs $15 to $30. Receiving money is usually free.
  • Check printing fee: If you order checks, the bank may charge you for them, or they may be free.

Many banks publish their fee schedule online. If you're looking at a bank's website and can't find it, call the customer service number and ask them to email it to you or read it over the phone. Don't open an account without seeing the fees first.

Decide whether to open in person, online, or by phone

Most banks now let you open a checking or savings account without visiting a branch. You can do it on their website, through their mobile app, or by calling their customer service number. The process usually takes 10 to 20 minutes. You'll answer questions about yourself, verify your identity (sometimes by uploading a photo of your ID), and choose which accounts you want.

Some banks still require you to come in person, especially if you're opening your first account with them or if you don't have a U.S. address. If you're not sure, call the bank or check their website — they'll tell you whether you can open online or need to visit a branch.

Opening in person has one advantage: you can ask questions and have someone walk you through how to use the account. Opening online is faster and you can do it at any time of day or night. Choose whichever fits your situation better.

Know what happens after you open the account

Once you open an account, the bank will give you (or mail you) a debit card, which you can use to withdraw money from ATMs and pay for things in stores. They'll also set up online banking so you can check your balance, transfer money, and pay bills from your computer or phone. Some banks send you checks; others make you order them.

Your first statement will arrive about a month after you open the account. It shows every deposit and withdrawal, any fees you were charged, and your current balance. Read it carefully to make sure everything is correct. If something looks wrong, call the bank right away.

If you get a paycheck, you can set up direct deposit, which means your employer puts your paycheck directly into your account instead of giving you a paper check. This is faster and safer, and many banks waive their monthly fee if you set up direct deposit. Ask your employer's payroll department how to do this — they'll need your account number and routing number, which the bank will give you.

Frequently Asked Questions

Can I open a bank account if I don't have a permanent address?

Most banks require a current address, but some will accept a mailing address (like a post office box) or the address of a shelter or social service organization. Call the bank and explain your situation — they may be able to work with you. Credit unions are sometimes more flexible than large banks.

What if I've had problems with banks before, like overdrafts or fraud?

Banks check a system called ChexSystems that tracks account closures and fraud. If you're in the system, some banks will still open an account for you, but others won't. Online banks and credit unions are sometimes more willing to work with people who have had problems. Call ahead and ask whether they accept people with ChexSystems records.

Do I need a minimum amount of money to open an account?

Most banks don't require you to deposit money to open an account — you can open it with zero dollars. However, some banks require a minimum balance to avoid monthly fees, and that minimum is usually $500 to $1,500. Read the fee schedule to see what applies to the account you're interested in.

How long does it take to open an account?

Online or by phone, it usually takes 10 to 20 minutes. In person, it may take 30 minutes to an hour if the branch is busy. Your debit card usually arrives in the mail within 5 to 10 business days. You can usually start using the account online the same day you open it.

What's 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 set up bill payments. A savings account is for money you want to keep and grow — it pays interest, but you can usually only withdraw a certain number of times per month. Many people have both at the same bank.