What you need to bring and why banks ask for it

Banks ask for specific documents before they open an account because federal law requires them to verify your identity and check whether you appear on financial crime watchlists. This process is called Know Your Customer (KYC) verification, and it happens the same way at every bank in the United States.

You will need a government-issued photo ID — a driver's license, passport, or state ID card. Banks will also ask for a second form of identification that shows your address: a utility bill, lease agreement, or recent bank statement all work. Some banks accept a second photo ID instead. If you do not have a permanent address, a shelter letter or mail from a government agency addressed to you at that location can substitute.

Bring your Social Security number or Individual Taxpayer Identification Number (ITIN). The bank will use this to run a background check through ChexSystems, a database that tracks banking history and fraud. If you have never had a bank account, this check will straightforward show no history. If you have closed accounts or had overdrafts, those will appear here, and some banks may decline to open an account for you based on what they find.

Key Takeaways

  • You need a government photo ID, proof of address, and your Social Security number or ITIN before any bank will open an account.
  • Banks run a ChexSystems check on your Social Security number to see your banking history; a negative history may disqualify you at some banks but not others.
  • The entire process takes 15 to 30 minutes in person or 10 to 20 minutes online, and your account is usually active the same day.
  • If you are declined, second-chance banking programs and credit unions often have lower barriers than large national banks.
  • You do not need an opening deposit at most banks, though some require a minimum balance to avoid monthly fees.

Opening an account in person at a branch

Walk into any branch of the bank where you want an account. Tell a teller or banker you want to open a checking or savings account. They will take you to a desk, ask to see your ID and proof of address, and write down your Social Security number. They will then run the ChexSystems check — this takes a few minutes and happens on their computer while you wait.

If the check clears, they will ask you which type of account you want. A checking account is for regular deposits and withdrawals; a savings account is meant for money you keep longer term and typically earns a small amount of interest. Many people open both. The banker will explain the monthly fees (if any), the minimum balance required to avoid fees, and what you get with the account — debit card, online banking, mobile app, overdraft protection.

You will sign paperwork that includes the account agreement and a signature card. The banker will ask how you want to fund the account — you can deposit cash, a check, or a transfer from another bank. Some banks do not require an opening deposit; others ask for $25 to $100. Once this is done, your account number is assigned and your debit card is ordered. You can usually start using the account when ready for online transfers and bill pay, even though the physical card will arrive in 7 to 10 days.

Opening an account online

Most banks and many online-only banks let you open an account entirely through their website or mobile app. You will upload a photo of your ID using your phone camera, type in your address and Social Security number, and answer questions about your banking history. The bank runs the same ChexSystems check, usually within minutes.

If you are approved, you will choose your account type and set up online banking login credentials. The bank will ask how you want to fund the account — you can link an existing bank account and transfer money, or wait for a debit card to arrive and deposit cash at an ATM. Some online banks mail you a temporary debit card number you can use when ready while the physical card is in transit.

The entire process takes 10 to 20 minutes. Your account is active the same day, though transfers from other banks may take one to three business days to clear. If the bank declines you, you will see the reason on screen — usually a ChexSystems flag or an address that does not match their records.

What happens if you are declined

A bank can decline to open an account for you based on what appears in the ChexSystems report. Common reasons include unpaid overdrafts, a history of fraud, or too many closed accounts in a short time. The bank is not required to tell you the specific reason, though many do.

If you are declined, you have options. You can ask the bank for the reason and dispute it with ChexSystems if the information is wrong — ChexSystems has a process for corrections, similar to credit reporting disputes. You can also try a different bank; some banks have higher tolerance for negative history than others. Credit unions often have lower barriers than national banks and may open an account for you even with a problematic ChexSystems report.

Second-chance banking programs exist specifically for people with banking history problems. These accounts usually have higher fees and lower limits on withdrawals, but they let you rebuild a banking relationship. Ask your local credit union or community bank whether they offer this option.

Minimum balances and monthly fees

Most banks charge a monthly maintenance fee unless you meet one of these conditions: maintain a minimum balance (often $500 to $1,500), set up direct deposit, or keep a linked savings account with a minimum balance. Some banks waive fees entirely if you use online banking only and do not need a physical debit card.

Online banks typically have lower or no monthly fees because they do not operate physical branches. Traditional banks charge more because they maintain branch networks. If you cannot maintain a minimum balance, look for a no-fee checking account — these exist at most major banks and many credit unions.

Overdraft fees are separate from monthly fees. If you spend more than your balance, the bank will either decline the transaction or pay it and charge you an overdraft fee (typically $25 to $35 per overdraft). You can usually turn off overdraft protection to prevent this, which means transactions will straightforward be declined if you do not have the funds.

What to do after your account opens

Set up online banking and the mobile app when ready. This lets you check your balance, transfer money, and pay bills without visiting a branch. Write down your account number and keep it somewhere safe — you will need it to set up direct deposit or receive wire transfers.

If you are receiving direct deposit (paychecks, benefits, tax refunds), give your employer or the paying agency your account number and routing number. The routing number is a nine-digit code specific to your bank and branch; you can find it on a check or by calling the bank. Direct deposits usually take one to two business days to process the first time, then appear on the same day each pay period after that.

Order a debit card if one was not issued automatically. This card lets you withdraw cash from ATMs and make purchases without writing checks. Most banks issue one free; replacements cost $5 to $15. If you want checks, order them through the bank's website — they usually cost $10 to $20 per box of 100.

Opening a joint account or account for someone else

If you want to open an account with another person (a joint account), both of you must be present in person or both must verify your identity online. Each person needs their own ID and Social Security number. The bank will run ChexSystems on both people. Either person can withdraw money or close the account without the other's permission, unless you specifically request a "both signatures required" restriction — most banks offer this option.

If you want to open an account for a minor (someone under 18), you must be present as the parent or legal guardian. The minor does not need their own Social Security number; you can use yours. The account will be in both names, and you will have full control until the minor reaches the age of majority (18 in most states). At that point, the account becomes theirs alone, though you can remain as a joint owner if both of you agree.

Frequently Asked Questions

How long does it take to open a bank account?

In person, 15 to 30 minutes. Online, 10 to 20 minutes. Your account is active the same day, though a physical debit card takes 7 to 10 business days to arrive. Transfers from other banks take one to three business days to clear.

Do I need an opening deposit?

Most banks do not require one, though some ask for $25 to $100. If you do not have money to deposit, ask the banker whether the account can open with zero balance. You can always deposit money later.

What if I do not have a permanent address?

A shelter letter, mail from a government agency, or a letter from a social service organization addressed to you at that location can work as proof of address. Call the bank ahead of time to confirm what they will accept.

Can I open an account if I have been declined before?

Yes. Try a different bank, a credit union, or a second-chance banking program. Each institution has different standards. If you were declined because of incorrect information in ChexSystems, dispute it directly with ChexSystems before trying again.

What is the difference between a checking and savings account?

A checking account is for frequent deposits and withdrawals; it usually comes with a debit card and checks. A savings account is for money you keep longer and typically earns interest, though the rate is usually very low. Most people open both.