What you need before you walk in or go online

Most banks and credit unions will ask for a government-issued ID, proof of your current address, and your Social Security number or tax ID. Bring a physical ID — a driver's license, passport, or state ID card — because online verification often fails on the first try and you may need to visit a branch anyway. A recent utility bill, lease, or mortgage statement works for address proof. If you don't have a Social Security number, some institutions will accept an Individual Taxpayer Identification Number (ITIN).

You'll also need an opening deposit. This varies by bank and account type — some require $0, others ask for $25 to $500. Credit unions sometimes require a small membership fee ($5 to $25) before you can open an account. Call or check the website first so you're not caught short at the counter.

Have a list of any other banks where you hold accounts. Banks use ChexSystems, a checking account history database, to screen applicants. If you've had accounts closed for overdrafts or fraud, the bank will see it. You don't need to hide it — just be ready to explain what happened.

Key Takeaways

  • Bring a government-issued ID, proof of your address, and your Social Security number or ITIN to open an account in person or online.
  • Opening deposits range from $0 to $500 depending on the bank and account type, so confirm the amount before you arrive.
  • Banks check ChexSystems, a database of account histories, so past overdrafts or closures will show up — but won't automatically disqualify you.
  • Online accounts open faster (often the same day) but require a valid email and phone number you can access when ready for verification.
  • Credit unions may require membership fees or have membership requirements, so read the fine print before you commit.

Opening an account online versus in a branch

Online accounts open faster and you can do it from home. Most banks complete the process in minutes to a few hours. You'll upload photos of your ID and proof of address, enter your information, and fund the account by linking a bank account or debit card. The bank sends a confirmation email and you can start using the account the same day, though transfers may take one to two business days to settle.

The catch: online verification sometimes fails because the system can't match your ID photo to your face, or your address doesn't match what's on file. If that happens, you'll get an email asking you to visit a branch or call to verify by phone. Have your ID and address proof ready in case you need to prove yourself a second way.

In-branch accounts take longer but are more reliable if your information is unusual or if you've had past account problems. A teller can see your ChexSystems report and explain what it says. If there's a flag, they can often override it on the spot. Bring everything listed above and plan to spend 15 to 30 minutes at the counter.

What happens after you open the account

The bank will issue you a debit card, usually within 7 to 10 business days. You can use your account before the card arrives by setting up transfers from another bank account or by using the bank's mobile app to pay bills. Some banks let you use a temporary digital card in their app right away.

You'll receive account statements — either by mail or email, depending on what you choose. Read the first one carefully. Check that the opening deposit posted correctly and that no unexpected fees were charged. Most banks charge a monthly maintenance fee ($5 to $15) unless you meet certain conditions, like keeping a minimum balance or setting up direct deposit. Some accounts have no monthly fee at all.

If you made a mistake during setup — wrong address, misspelled name, wrong phone number — contact the bank within the first few days. Changes are easier to make before the account is fully activated. After that, you may need to visit a branch or send a notarized form.

Choosing between a bank and a credit union

Banks are for-profit companies with branches and ATMs everywhere. Credit unions are member-owned nonprofits, usually smaller, with fewer locations but often lower fees and better interest rates on savings. Both are insured by the federal government — banks through the FDIC (Federal Deposit Insurance Corporation), credit unions through the NCUA (National Credit Union Administration) — up to $250,000 per account.

Banks are faster if you need a branch nearby or want to deposit checks at an ATM. Many banks let you deposit checks through their mobile app now, so location matters less than it used to. Credit unions often have better customer service and lower overdraft fees, but you may need to live or work in a certain area, or belong to a certain employer or organization, to join. Check the credit union's membership requirements before you waste time explore.

If you're choosing between two banks with similar fees, pick the one with branches or ATMs near your home or work. You'll use it more if you don't have to drive 20 minutes to deposit cash.

Understanding fees and minimum balances

Monthly maintenance fees are the most common cost. They range from $0 to $15 and are usually waived if you keep a minimum balance (often $500 to $1,500), set up direct deposit, or maintain a certain number of debit card transactions per month. Read the fee schedule before you open the account — it's usually on the bank's website under "Pricing" or "Fees."

Overdraft fees happen when you spend more than you have. Most banks charge $25 to $35 per overdraft, and some charge multiple times per day if you make several transactions while overdrawn. You can usually opt out of overdraft protection, which means the bank will decline the transaction instead of charging you a fee. This is the safer choice if you're new to banking or managing money tightly.

Interest rates on savings accounts are very low — usually 0.01% to 0.50% per year, depending on the bank and the economy. High-yield savings accounts at online banks pay more (currently 4% to 5% in some cases), but the rate changes constantly. Don't choose a bank based on interest rate alone, but if two banks have the same fees, the one with higher interest is the better deal.

If the bank says no

Banks can refuse to open an account if ChexSystems shows a serious problem — multiple overdrafts, fraud, or an account closed by the bank for cause. If you're denied, ask why. The bank must tell you, and you have the right to see your ChexSystems report for free. You can dispute errors on the report directly with ChexSystems.

If you were denied because of overdrafts or a closed account, try a credit union or a second-chance bank account. Second-chance accounts are designed for people with banking history problems. They usually have higher fees and lower limits on spending, but they report to ChexSystems, so good behavior rebuilds your record. After 12 to 24 months of clean activity, you can move to a regular account.

Some banks use a different screening system called Early Warning Services instead of ChexSystems. If one bank denies you, try another — they may use a different system or have different policies.

Frequently Asked Questions

Do I need a minimum opening deposit?

It depends on the bank and account type. Many banks now offer accounts with $0 opening deposit, especially for online accounts. Others ask for $25 to $500. Credit unions may require a small membership fee ($5 to $25) before you can open an account. Check the specific account details on the bank's website or call before you explore.

Can I open an account if I don't have a Social Security number?

Yes. You can use an Individual Taxpayer Identification Number (ITIN) instead. Some banks accept ITINs without question; others require you to visit a branch to verify in person. Call ahead and ask whether the bank accepts ITINs for online accounts, or plan to open your account at a branch.

How long does it take to open an account?

Online accounts usually open in minutes to a few hours. In-branch accounts take 15 to 30 minutes. You can use the account when ready, but transfers and debit cards may take one to ten business days to arrive. If online verification fails, you may need to visit a branch, which adds a few days.

What if I made a mistake on my process?

Contact the bank when ready — within the first few days if possible. Small mistakes like a misspelled name or wrong phone number can usually be fixed over the phone or through the app. Address changes are easier to make early. After the account is fully activated, you may need to visit a branch or provide a notarized form to make changes.

Can I have more than one savings account?

Yes. You can open savings accounts at multiple banks. Each account is insured separately up to $250,000 by the FDIC or NCUA, so having multiple accounts doesn't increase your insurance coverage per bank, but it does if the banks are different institutions. Some people open accounts at different banks to organize money for different goals.