What happens when you open a account

When you open a bank account, you give the bank information about who you are, and the bank creates a record for you in their system. The bank uses this information to follow federal rules about knowing their customers and preventing fraud. You'll answer questions, show documents, and sign papers. Then the bank either approves you on the spot or tells you they need to review your information and will contact you within a few days.

The whole process usually takes 15 to 30 minutes in person, or 10 to 20 minutes online if you're opening an account through a website or app. Some banks finish faster than others, and some accounts are simpler than others — a basic checking account takes less time than a checking account bundled with other products.

Key Takeaways

  • Bring a government-issued photo ID (driver's license, passport, or state ID card) and proof of your current address, such as a recent utility bill or lease.
  • Have your Social Security number ready, or know what to do if you don't have one — some banks have accounts for people without SSNs.
  • Bring a small amount of money to deposit if the bank requires a minimum opening deposit, though many banks no longer do.
  • The bank will ask about your employment and income, but you don't need pay stubs or tax returns unless the bank specifically requests them.
  • You'll receive account numbers and online banking information either when ready or by mail within a few days.

Documents you need to bring

Bring one government-issued photo ID. A driver's license works best because it has your address on it. A passport or state ID card also works. The ID must not be expired, though some banks accept IDs that expired recently — call ahead if yours is old.

Bring proof that you live where you say you live. A recent utility bill (electric, gas, water, or internet), a lease, a mortgage statement, or a government letter addressed to you at your current address all work. "Recent" usually means from the last 60 days, though banks vary. If you don't have any of these, ask the bank what they accept — some take a bank statement from another bank, a pay stub, or a letter from a shelter or social service agency.

If you don't have a photo ID at all, some banks will still open an account for you, but they'll ask more questions and may require more documents. Call the bank before you go in and ask what they need from someone without a photo ID.

Information the bank will ask for

The bank will ask your full legal name, date of birth, and Social Security number. If you don't have a Social Security number, tell the bank — they have a process for this and can still open an account for you, though it may take longer. You'll need an Individual Taxpayer Identification Number (ITIN) instead, which you can get from the IRS.

The bank will ask about your employment and income. They want to know roughly how much money comes into your account each month. You don't need to bring pay stubs or tax returns unless the bank asks for them specifically. If you're unemployed, retired, or receive benefits, just say so — the bank is not judging you, they're following a legal requirement to understand their customers.

The bank will ask why you want the account and how you plan to use it. Answer honestly and straightforward: "I want to deposit my paychecks and pay bills" or "I want a safe place to save money" are both fine answers.

Opening deposit and minimum balance requirements

Many banks no longer require you to deposit money to open an account. If a bank does require an opening deposit, it's usually between $25 and $100. Ask the bank what the minimum is before you go in, so you know whether to bring cash or a check.

Some accounts have a minimum balance requirement — meaning you have to keep a certain amount of money in the account at all times, or you'll be charged a fee. Read the account agreement carefully or ask the banker to explain this before you sign. A basic checking account often has no minimum balance, but a savings account or a premium checking account might.

What happens after you sign

If you open the account in person at a branch, you'll usually get your account number and online banking information right away. The bank will give you a temporary debit card or tell you when your card will arrive by mail. You can usually start using your account online or through the bank's app within a few hours.

If you open the account online, the bank will send you a confirmation email and may mail you a debit card within 5 to 10 business days. Some online banks let you use your account before the card arrives by setting up transfers or bill payments.

Keep the papers the bank gives you. They include your account number, routing number, and information about fees and rules. You'll need the routing number and account number to set up direct deposit or to have money transferred in from another bank.

If the bank says no

Banks sometimes deny an account to someone because of their banking history. This usually happens if you owe money to another bank, if you've had accounts closed for fraud or repeated overdrafts, or if you appear on a banking blacklist called ChexSystems. You can ask the bank why they said no — they're required to tell you.

If you were denied, you can check your ChexSystems report for free at www.chexsystems.com. If there's an error on your report, you can dispute it. Some banks specialize in second-chance accounts for people with banking problems — they charge higher fees but will work with you. Credit unions sometimes have more flexible policies than large banks.

Opening an account online instead of in person

Many banks let you open an account entirely through their website or app. You'll upload photos of your ID and proof of address instead of showing them in person. The bank will verify your identity using information from credit bureaus or by asking security questions only you would know the answers to.

Online accounts are faster and more convenient, but you lose the chance to ask questions face-to-face. If you're new to banking and have questions about how accounts work, you might prefer opening in person at a branch where you can talk to someone. Some banks let you do both — start online and finish in person if you want to.

Frequently Asked Questions

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

Most banks require a Social Security number, but not all. If you don't have one, you can get an Individual Taxpayer Identification Number (ITIN) from the IRS, which banks will accept instead. Call the bank before you go in and ask whether they work with ITINs.

What if I don't have a current address or proof of address?

Tell the bank before you go in. Some banks accept mail from a government agency, a shelter, or a social service organization as proof of address. Others will work with you if you explain your situation. A few banks have accounts for people experiencing homelessness.

Can I open an account if I've been denied before?

Yes. Check your ChexSystems report to see why you were denied and fix any errors. Then try a different bank, or look for a credit union or second-chance bank account in your area. These accounts may have higher fees, but they're designed for people rebuilding their banking history.

How long does it take to use my account after I open it?

If you open in person, you can usually use your account online within hours. If you open online, you can use it within 24 hours, though your debit card may take 5 to 10 business days to arrive by mail.