What you need to bring and where to go

Opening a bank account requires two things: proof of who you are, and proof of where you live. You bring these documents to a bank or credit union branch in person, fill out a form, and usually walk out with a debit card within a few minutes.

For proof of identity, bring a government-issued ID — a driver's license, passport, state ID card, or tribal ID all work. If you don't have one of these, some banks will accept a combination of other documents like a birth certificate plus a utility bill, but call ahead to ask what they'll take.

For proof of address, bring a recent utility bill, lease, mortgage statement, or government mail with your name and current address. It usually needs to be dated within the last 60 days. A cell phone bill counts at most banks, but not all — ask when you call.

You can open an account at any bank or credit union. Banks are for-profit companies; credit unions are member-owned nonprofits that often charge fewer fees. Both are equally safe — deposits are insured by the federal government up to $250,000 per account type.

Key Takeaways

  • Bring a government ID and a recent utility bill or lease showing your current address to any bank or credit union branch.
  • The whole process takes 15 to 30 minutes and you can use your debit card the same day or within a few days.
  • Banks charge monthly fees; credit unions usually charge less or none, but have fewer branches and ATMs.
  • You do not need a minimum deposit to open most accounts, though some banks require $25 to $100 to start.
  • Your money is protected by federal insurance regardless of which bank or credit union you choose.

Choosing between a bank and a credit union

A bank is a for-profit business. It has many branches and ATMs, stays open longer, and offers more products like investment accounts and business loans. The trade-off is that monthly fees are common — often $10 to $15 per month — and minimum balances to avoid fees can be high.

A credit union is owned by its members, not shareholders. It usually charges no monthly fee or a much smaller one, pays slightly higher interest on savings, and charges lower fees for overdrafts and wire transfers. The downside is fewer locations and ATMs, shorter hours, and fewer fancy products. If you live in a small town, your local credit union might be the only option.

Many people belong to both. You might use a bank for everyday spending because of the ATM network, and a credit union for savings because of the better interest rate. There is no rule against it.

What happens during the account opening appointment

When you arrive at the branch, tell the teller or greeter you want to open a checking account (or savings account, or both). They will hand you a form to fill out with your name, address, phone number, email, and Social Security number or Individual Taxpayer Identification Number (ITIN). If you don't have either, ask what the bank will accept — some take a passport number instead.

The bank will run a background check using a service called ChexSystems. This checks whether you have unpaid overdrafts or fraud history at other banks. Most people pass when ready. If you have a history of overdrafts or closed accounts due to negative balances, some banks will still open an account for you, but others won't — this is why it's worth calling ahead if you're worried.

You'll choose which type of account to open. A checking account is for money you spend regularly — it comes with a debit card and checks. A savings account is for money you want to keep and earn interest on — you can't spend from it as easily, but it pays you a small amount of interest. Most people open both.

You'll also choose a PIN (personal identification number) for your debit card, usually four digits. Write it down somewhere safe at home, not in your wallet.

Minimum deposits and first fees

Many banks and credit unions let you open an account with no deposit at all. Others require $25, $50, or $100 to start. This is not a fee — it's your own money sitting in the account. You can withdraw it anytime, though some banks will close the account if the balance drops below a certain level.

Monthly maintenance fees range from nothing to $15 per month at most banks. Credit unions usually charge nothing or $3 to $5. Some banks waive the fee if you keep a minimum balance (often $500 to $1,500) or set up direct deposit of your paycheck. Ask about this before you open the account — it can save you money.

Overdraft fees happen when you spend more money than you have in the account. The bank covers the purchase and charges you a fee, usually $30 to $35 per overdraft. You can ask the bank to turn off overdraft protection so purchases straightforward decline instead of charging a fee — this is free and many banks do it automatically now.

Getting your debit card and starting to use the account

Most banks give you a debit card on the spot or mail it within 3 to 5 business days. You can use it at any ATM with the Visa or Mastercard logo (whichever your bank uses) to withdraw cash. You can also use it to pay for things in stores and online, just like a credit card — the money comes directly from your checking account.

When your card arrives, you'll need to set up it. The bank will include instructions — usually you call a phone number or go to the bank's website and enter the card number. Once it's activated, you can use it when ready.

Set up online banking so you can check your balance and move money between accounts from your phone or computer. The bank will give you a username and password, or let you create one. Write down the password somewhere safe — not in your phone notes.

If you get a paycheck, ask your employer for a direct deposit form. This sends your paycheck straight into your account without you having to go to the bank. It usually takes one or two pay periods to set up, so your first paycheck might still come as a check.

What to do if a bank turns you down

If a bank refuses to open an account for you, it's usually because of ChexSystems — unpaid overdrafts or fraud at another bank. You have the right to know why. Ask the bank to tell you the reason in writing.

You can then contact ChexSystems yourself to see what's on your report and dispute anything that's wrong. Their website is chexsystems.com and they have a phone number for disputes. Fixing errors takes time, but it's worth doing.

In the meantime, look for a second-chance account or basic checking account. These are designed for people with ChexSystems problems. They usually have higher fees and lower limits on how much you can withdraw per day, but they let you rebuild your banking history. Credit unions are often more willing to open these accounts than big banks.

Understanding account types and what each one does

A checking account is for money you use regularly. You get a debit card and can write checks. Interest is usually zero or very close to it. Use this for your paycheck and everyday spending.

A savings account earns interest — the bank pays you a small percentage of your balance each month. The rate changes based on what the Federal Reserve does, but right now it's usually between 4% and 5% per year at online banks, and much lower (0.01% to 0.5%) at big banks. You can't spend from it with a debit card, but you can move money to your checking account whenever you need it.

A money market account is a hybrid — it earns more interest than a savings account but lets you write a few checks per month. Most people don't need one when starting out.

A certificate of deposit (CD) locks your money away for a set time — 3 months, 1 year, 5 years — and pays higher interest in exchange. Don't open one until you have an emergency fund and don't need the money.

Frequently Asked Questions

Do I need a Social Security number to open a bank account?

No. If you don't have a Social Security number, you can use an Individual Taxpayer Identification Number (ITIN) instead. Some banks also accept a passport number or will work with you on other forms of ID. Call ahead and ask what the bank will take.

Can I open an account online instead of going to a branch?

Some online banks let you open an account entirely on your phone or computer using a photo of your ID. However, you still need to verify your identity somehow — usually by uploading a photo of your ID and sometimes by answering security questions. You won't get a debit card as fast as you would in person, but it arrives within a week or two.

What if I don't have a permanent address?

Some banks will accept a shelter address, a PO box, or a friend's address if you have permission. Call the bank and explain your situation — they may have options. Credit unions are sometimes more flexible than big banks.

How much money do I need to keep in the account?

There is no rule. You can keep $1 or $10,000. However, some banks charge a monthly fee if your balance drops below a certain amount — often $500 or $1,500. Read the fee schedule before you open the account so you know what to expect.

Is my money safe if the bank fails?

Yes. The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 per account type at each bank. So if you have $10,000 in a checking account and $10,000 in a savings account at the same bank, both are fully protected. Credit unions are insured by the National Credit Union Administration (NCUA) with the same $250,000 limit.