What you need to do to open a bank account

Opening a bank account means walking into a bank or credit union, or going online, and giving them enough information to create an account in your name. The bank then holds your money, lets you deposit paychecks or cash, and lets you withdraw it when you need it. You will need a government-issued ID, proof of your address, and usually your Social Security number or tax ID. The whole process takes between 15 minutes and a few days, depending on whether you do it in person or online.

Most banks and credit unions have made this simpler in recent years. You can open many accounts without leaving home. Even if you have no banking history, no credit score, or a past problem with a bank, you have options — some institutions specifically serve people new to banking.

Key Takeaways

  • You will need a government ID, proof of your address, and your Social Security number or ITIN to open an account at most banks.
  • You can open an account in person at a branch, by phone, or online — the method depends on the bank and whether you already have an account there.
  • If a bank has turned you down before, credit unions and second-chance banking programs exist specifically for people in that situation.
  • After you open the account, the bank will give you a debit card and checks within one to two weeks, and you can start using the account when ready.
  • Some banks charge monthly fees; others do not — compare the fee structure before you choose, because fees add up over time.

Gather the documents you will need

Before you walk into a bank or sit down at a computer, collect these three things. First, a government-issued photo ID — a driver's license, passport, state ID card, or tribal ID. Second, proof of your current address — a utility bill, lease, mortgage statement, or government mail dated within the last 60 days. Third, your Social Security number or, if you do not have one, your Individual Taxpayer Identification Number (ITIN).

If you do not have a current address, some banks will accept mail from a shelter, a PO box, or a relative's address where you receive mail. Call the bank ahead of time and ask what they will take. If you do not have a government ID, you can get a state ID card from your state's Department of Motor Vehicles — you do not need a driver's license. This costs money (usually $15 to $50 depending on your state) but is worth it because many banks will not open an account without one.

If you do not have a Social Security number, you can get an ITIN from the IRS. This takes longer — usually several weeks — so plan ahead if you need one.

Choose between a bank and a credit union

A bank is a for-profit business that takes your deposits and lends them out to make money. A credit union is a nonprofit owned by its members — the people who have accounts there. Both hold your money safely and let you deposit and withdraw. The main differences are in fees, customer service, and who they serve.

Banks are everywhere and often have more branches and ATMs. They tend to charge monthly fees unless you keep a minimum balance or set up direct deposit. Credit unions usually charge lower fees or no fees at all, but they have fewer locations. Some credit unions serve specific groups — teachers, government workers, people who live in a certain county, or people who work for a certain employer. If you belong to one of these groups, a credit union may be cheaper.

If a bank has closed your account in the past or you have had problems with overdraft fees, look for a second-chance banking program. These are accounts designed for people new to banking or returning after a gap. They have lower fees, no overdraft charges, and no credit check. Chime, LendingClub, and some local credit unions offer them.

Open the account in person, by phone, or online

Most banks let you choose how to open an account. In person means going to a branch with your documents. A banker will look at your ID and address proof, ask for your Social Security number, and fill out a form. This takes 15 to 30 minutes. You walk out with a debit card number (though the physical card arrives by mail) and can start using the account the same day.

Online means filling out a form on the bank's website. You upload photos of your ID and address proof, type in your Social Security number, and choose a PIN. This takes 10 minutes. Some banks verify your identity when ready; others call you or send a code to your phone. You can use the account within hours, though the debit card arrives by mail in one to two weeks.

By phone is less common now, but some banks still offer it. You call a customer service number, answer questions about yourself, and give your documents over the phone or by mail. This is slower — usually three to five business days — but works if you cannot visit a branch or use the internet.

What happens after you open the account

Once the bank approves you, you have an account number and a routing number. The bank will send you a debit card by mail within one to two weeks. You can use your account number and routing number to set up direct deposit or to receive wire transfers before the card arrives. You can also go to an ATM and withdraw cash using your account number and PIN.

The bank will also send you checks if you asked for them, though this takes longer — usually two to four weeks. You do not need checks to use your account. Most people pay bills online or with a debit card now. Checks are useful if you need to pay rent, a contractor, or someone who does not take cards.

Keep your account number, routing number, and PIN safe. Do not share them with anyone except your employer (for direct deposit) or a person you are paying. If your debit card is lost or stolen, call the bank when ready — they will cancel it and send a new one.

Understand the fees you might pay

Some banks charge a monthly maintenance fee, usually $5 to $15. Others charge nothing. The difference depends on the bank and the type of account. A checking account is for money you use regularly — paying bills, getting paid, buying things. A savings account is for money you want to keep and grow. Some banks charge fees on one but not the other.

Other fees to watch for: overdraft fees (charged if you spend more than you have), ATM fees (charged if you use another bank's ATM), and transfer fees (charged if you move money between accounts). Many banks waive the monthly fee if you set up direct deposit or keep a minimum balance — often $500 or $1,000. Second-chance accounts usually have no monthly fee and no overdraft fees.

Before you open an account, look at the bank's fee schedule. It is usually on their website under "Pricing" or "Fees". Compare two or three banks. A bank with no monthly fee and no overdraft fees will cost you less over time than one that charges $12 a month.

What to do if a bank turns you down

Banks use a system called ChexSystems to check your banking history. If you have unpaid overdrafts, bounced checks, or fraud on a past account, ChexSystems will flag you. Some banks will not open an account for you because of this. This does not mean you cannot bank — it means you need to look elsewhere.

First, ask the bank why they turned you down. They must tell you. If it is a ChexSystems issue, you can dispute it — go to chexsystems.com and follow their dispute process. If the information is wrong, ChexSystems will correct it and the bank may reconsider.

If the information is correct, try a credit union or a second-chance banking program. These institutions do not use ChexSystems or do not care about past problems. LendingClub, Chime, and many local credit unions will open accounts for people with banking problems. You may pay slightly higher fees, but you will have a safe place to keep your money.

Frequently Asked Questions

Do I need a job to open a bank account?

No. Banks do not require proof of employment. You need an ID, proof of address, and a Social Security number or ITIN. If you do not have a job, you can still open an account and deposit money however you receive it — cash, checks, transfers from family, or government benefits.

Can I open an account if I do not have a Social Security number?

Yes, if you have an ITIN. An ITIN is a tax ID number for people who do not have a Social Security number. You can get one from the IRS by filing Form W-7. It takes several weeks, so plan ahead. Some banks will open an account while you are waiting for your ITIN if you provide a receipt showing you applied.

What is the difference between a checking and savings account?

A checking account is for money you use regularly — you can write checks, use a debit card, and set up bill pay. A savings account earns interest (a small amount of money the bank pays you) and is meant for money you want to keep. Many people have both: a checking account for bills and daily spending, and a savings account for emergencies.

How long does it take to open an account?

In person, 15 to 30 minutes. Online, 10 minutes to a few hours depending on how the bank verifies you. By phone, three to five business days. You can use the account the same day or within hours, but your debit card arrives by mail in one to two weeks.

What if I lose my debit card?

Call your bank when ready. They will cancel the card so no one else can use it and will send you a new one by mail, usually within five to seven business days. Until it arrives, you can withdraw cash at an ATM using your PIN and account number, or use your phone to pay if your bank has a mobile app.