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, hand them to someone at the desk, and they will walk you through the rest on the spot.

For proof of identity, bring a government-issued ID — a driver's license, passport, state ID card, or tribal ID all work. If you do not have one of these, some banks will accept a combination of documents like a birth certificate plus a utility bill, though this varies by bank. Call ahead and ask what they accept if you are unsure.

For proof of address, bring a recent utility bill, lease agreement, or mortgage statement — something dated within the last 60 days with your name and current address on it. A bank statement from another bank also works. If you do not have these, some banks will accept mail from a government agency addressed to you at your current address.

You do not need to bring money to open the account. Many banks have no minimum deposit requirement, though some require $25 or $100 to start. Ask when you call or visit.

Key Takeaways

  • Bring a government-issued ID and a recent document showing your current address — a utility bill or lease works for both.
  • You can open an account in person at a bank or credit union branch without an appointment, though calling first to confirm hours is wise.
  • The bank employee will ask you questions about your income and employment during the process — answer honestly, as they are required to verify this information.
  • You will choose a checking account, savings account, or both; checking is for money you spend regularly, savings is for money you set aside.
  • You will receive a debit card in the mail within one to two weeks, and can use your account online or by phone before it arrives.

Choosing between checking and savings accounts

A checking account is for money you use regularly — paying bills, buying groceries, getting cash. You can write checks, use a debit card, and set up automatic payments. Most checking accounts have no monthly fee, though some charge $5 to $15 if you do not keep a minimum balance or do not have direct deposit.

A savings account is for money you want to keep separate and grow. The bank pays you a small amount of interest — currently between 4% and 5% per year at most banks, though this changes — in exchange for keeping your money there. You can withdraw money whenever you need it, but the account is designed to discourage frequent withdrawals.

Most people open both at the same time. The checking account handles daily spending, and the savings account holds an emergency fund or money toward a goal. You can move money between them when ready online or at the branch.

What happens during the account opening process

When you sit down with the bank employee, they will ask you questions: your full legal name, date of birth, Social Security number, current address, phone number, and employment information. They will also ask whether you have had a bank account before and whether you have ever had problems with a bank — bounced checks, unpaid fees, or fraud. Answer truthfully. Banks check a system called ChexSystems that tracks these things, and lying will be discovered.

The employee will then show you the account options available at that bank and ask which type you want. They will explain the fees, if any, and the interest rate on savings. They will set up online banking access so you can check your balance and move money from home. This takes about 15 to 20 minutes total.

Before you leave, you will receive a temporary debit card or a number to use online when ready, and a permanent debit card will arrive by mail in one to two weeks. You can start using the account right away — depositing checks by phone or mail, setting up direct deposit, or transferring money from another account — even before the card arrives.

Banks versus credit unions: what is the difference

A bank is a for-profit business owned by shareholders. A credit union is a nonprofit owned by its members — the people who have accounts there. Both offer checking and savings accounts, debit cards, and loans. Both are insured by the federal government up to $250,000 per account type, so your money is equally safe at either one.

Credit unions often charge lower fees and pay slightly higher interest on savings accounts because they do not need to make a profit. Banks often have more branches and ATMs, making it easier to deposit checks or withdraw cash in person. If you live in a rural area, a credit union may be your only local option. If you travel frequently, a bank with many branches may be more convenient.

To open an account at a credit union, you usually need to become a member first — this is free and takes a minute. Some credit unions are open to anyone in a geographic area; others are only for employees of a specific company or members of a specific organization. Ask whether you are may be able to access before you visit.

Opening an account online or by mail

Some banks let you open a checking or savings account entirely online without visiting a branch. You upload photos of your ID and proof of address, answer the same questions the employee would ask, and the account opens within one to three business days. You can deposit checks by taking a photo with your phone, and you receive a debit card by mail.

Online-only banks — banks with no physical branches — often have the lowest fees and highest interest rates because they have no building costs. However, you cannot deposit cash in person, and if you have a problem, you can only reach them by phone or email, not face-to-face.

Opening by mail is rare but possible at some credit unions. You fill out a paper form, mail it with copies of your documents, and they mail back your debit card and account information. This takes two to three weeks. Most people find it easier to visit a branch or open online instead.

What to do if you have had banking problems before

If you have bounced checks, unpaid overdraft fees, or a fraud dispute on your record, some banks will refuse to open an account for you. This information stays in ChexSystems for five years. However, you have options.

Second-chance checking accounts are designed for people with banking history problems. They usually have higher fees ($10 to $25 per month) and lower limits on how much you can spend or deposit, but they report to ChexSystems as on-time payments, which helps rebuild your record. After 12 to 24 months of good standing, you can move to a regular account.

Credit unions are often more flexible than banks about past problems, especially if you can explain what happened. Call a few credit unions in your area and ask whether they work with people who have ChexSystems records. Many will.

If you cannot open a traditional account, a prepaid card — a card you load money onto in advance — lets you spend and pay bills without a bank account. It is not the same as a bank account, and you do not earn interest, but it keeps your money safer than carrying cash and lets you pay online.

Setting up direct deposit and your first transactions

Once your account is open, you can start using it when ready. If your employer or a government program (like Social Security or unemployment) sends you money, you can set up direct deposit — the money goes straight into your account without you having to do anything. Ask your employer or the government agency for a form, fill in your bank's routing number and your account number (both printed on your temporary debit card or available online), and submit it. Direct deposit usually starts within one to two pay periods.

You can also deposit checks by taking a photo with your phone and uploading it through the bank's app — this is called mobile check deposit. The money usually appears in your account within one business day. You can withdraw cash at any ATM with your debit card, or visit a branch and ask the teller.

To pay bills, you can set up automatic payments through your online banking account, write a check, or use your debit card. Most bills can be paid online in minutes. If you are new to banking, start with one or two automatic payments to get comfortable, then add more as you go.

Frequently Asked Questions

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

Most banks require a Social Security number, but some will open an account using an Individual Taxpayer Identification Number (ITIN) instead if you do not have a Social Security number. Call banks in your area and ask which ones accept ITINs. Credit unions are often more flexible on this than large banks.

What if I do not have a permanent address?

Some banks will accept a shelter address, a PO box, or a care-of address (c/o someone else's address) as proof of residence. Call ahead and explain your situation — banks have options for people experiencing homelessness or housing instability. A credit union or community bank is often more willing to work with you than a large national bank.

Can someone else open an account for me?

No. You must be present in person or complete the online process yourself. The bank needs to verify your identity directly. However, once the account is open, you can give someone else power of attorney to manage it if you choose.

How long does it take to open an account?

In person at a branch, the whole process takes 15 to 20 minutes. Online, it takes 5 to 10 minutes to fill out the form, and the account opens within one to three business days. By mail, it takes two to three weeks.

What if the bank denies me?

Banks must tell you why they refused. Common reasons are a ChexSystems record, unpaid fees at another bank, or fraud. If you disagree with the reason, you can dispute it with ChexSystems directly. If the reason is accurate, look for a second-chance checking account or a credit union instead.