What happens when you walk in to open a savings account
A commercial bank is a bank that takes deposits from regular people and businesses, lends money, and offers services like checking and savings accounts. When you open a savings account there, the bank holds your money, pays you a small amount of interest (money the bank gives you for letting them use your funds), and lets you withdraw when you need it. The process takes about 30 minutes to an hour, and you'll leave with an account number and a debit card or passbook to track your balance.
Most commercial banks follow the same basic steps: you provide identification, fill out a form with your personal information, make an initial deposit, and sign documents. The bank verifies your identity and checks whether you have unpaid debts at other banks using a system called ChexSystems. If everything clears, your account opens the same day or within one business day.
Key Takeaways
- You will need a government-issued photo ID, proof of your current address, and your Social Security number or tax ID to open an account.
- Most banks require an opening deposit that ranges from $0 to $300, depending on the bank and account type.
- The bank will check ChexSystems, a database of banking history, to see if you have unpaid overdrafts or closed accounts with problems at other banks.
- You can open an account in person at a branch, by phone, or online, though in-person is fastest if you have questions.
- Bring original documents, not copies, because the bank must verify them against your face and signature.
Documents you need to bring
Bring an original government-issued photo ID — a driver's license, passport, or state ID card. The bank will look at it, write down the number, and keep a copy. Do not bring a photocopy; the bank needs to see the real document and match your face to the photo.
You also need proof of your current address. This can be a utility bill, lease agreement, mortgage statement, or government mail with your name and address dated within the last 60 days. A cell phone bill usually works. Again, bring the original or a recent statement, not a copy from months ago.
Finally, have your Social Security number ready. If you do not have one, you can use an Individual Taxpayer Identification Number (ITIN), which the IRS issues to people who file taxes but are not citizens. Write the number down or bring the card itself. Some banks also ask for a phone number and email address, so have those ready too.
The opening deposit and account minimums
Most commercial banks require you to deposit money when you open the account. This opening deposit usually ranges from $0 to $300, depending on which bank and which type of savings account you choose. Some banks have no minimum; others require $25 or $100. A few premium accounts aimed at wealthier customers may ask for $500 or more, but those are not common for first-time savers.
After the account opens, many banks also set a minimum balance — the smallest amount you must keep in the account. If your balance drops below that number, the bank may charge a monthly fee. Some accounts have no minimum balance at all. Before you open the account, ask the banker what the minimum balance is and what happens if you fall below it. This information should be in the account agreement they give you to sign.
You can make the opening deposit with cash, a check, or a transfer from another bank account. If you use a check, the bank will hold it for a few days while they verify the funds. Cash is fastest.
What the bank checks about your history
When you explore, the bank runs your name and Social Security number through ChexSystems, a database that tracks banking problems. ChexSystems records unpaid overdrafts (when you spent more money than you had), accounts closed because of fraud, and other serious issues. If you have a record there, the bank may deny your account or ask you to pay old debts first.
The bank also checks whether you have an active account at another bank that you owe money to. This is separate from ChexSystems and is called a bank verification service. If you have unpaid fees or overdrafts at another bank, some banks will not open an account for you until you settle those debts.
If you have been denied before or think you might have a problem on record, you can check your own ChexSystems report for free. Visit chexsystems.com and follow the link to request your report. You can also dispute errors on the report if information is wrong.
Opening an account in person, by phone, or online
In-person is the most straightforward route. Walk into any branch of the bank during business hours, tell the teller or greeter you want to open a savings account, and they will direct you to a banker or new accounts specialist. Bring all your documents, sit down for 20 to 30 minutes, and walk out with your account open. You will get a temporary debit card or a card number on the spot, and a passbook or online login to check your balance.
Many banks also let you open an account by phone. Call the number on the bank's website, speak to a representative, and they will walk you through the questions. You will still need to mail or upload copies of your ID and proof of address, and the bank will verify them before the account fully opens. This takes a few extra days.
Online account opening is the fastest for paperwork but requires you to upload clear photos of your documents. Take a photo of the front and back of your ID and a photo of your proof of address. Make sure the text is readable and the entire document fits in the frame. Upload them through the bank's website, and the bank will review them within one business day. Your account usually opens while you wait or within 24 hours.
What to expect after you open the account
Once your account is open, the bank will give you a debit card, a PIN (a four-digit code to use at ATMs), and online banking access. Write down your account number and keep it safe. You will use it to set up direct deposit from your employer or to transfer money in and out.
The bank will send you a welcome packet by mail with your account agreement, fee schedule, and other details. Read the fee schedule carefully. It will tell you what the bank charges for overdrafts, falling below the minimum balance, using an out-of-network ATM, or closing the account early. Some banks charge $25 to $35 per overdraft; others charge nothing if you link a backup account.
Your first statement will arrive 30 days after opening. It will show your opening deposit, any interest earned, and any fees charged. Check it against your own records to make sure everything is correct. If something is wrong, call the bank within 60 days to report it.
Common reasons a bank might deny your account
Banks deny accounts most often because of ChexSystems records — unpaid overdrafts, fraud, or accounts closed for cause. If this happens to you, ask the bank which reason they gave and request a copy of their decision in writing. You can then check your ChexSystems report and dispute any errors.
Some banks also deny accounts to people without a U.S. address or without a Social Security number or ITIN. If you are new to the country or do not have a Social Security number yet, look for banks that serve immigrants or people without SSNs. Many community banks and credit unions have these accounts.
A few banks deny accounts to people with very recent negative history — for example, if you closed an account at that same bank within the last year because of unpaid fees. In this case, waiting six months to a year before reapplying sometimes helps.
Frequently Asked Questions
Do I need to open a checking account first, or can I start with just savings?
You can open a savings account alone. Many people do. A checking account is separate and is used for everyday spending and bill payments. A savings account is for money you want to keep and grow. You do not need one to get the other.
What if I do not have a permanent address yet?
Some banks will accept a temporary address, like a shelter, hotel, or a friend's address where mail can reach you. Call ahead and ask. If the bank refuses, try a credit union or a community bank, which often have more flexible rules for people in transition.
Can someone else open the account for me if I cannot go to the bank?
No. You must be present and sign the account agreement yourself. The bank needs to verify your identity in person or through a video call for online accounts. A family member cannot open an account in your name.
How long does it take to start using the account after I open it?
If you open in person, you can use your debit card or make withdrawals the same day. If you open online or by phone, the account usually opens within one business day, and your debit card arrives by mail in five to seven business days. You can transfer money in before the card arrives.
What happens if the bank finds an error in my documents?
The bank will contact you by phone or email and ask you to provide corrected documents or clarification. This usually takes a few days. If you cannot fix the error, the bank may deny the account. Always double-check that your address on your ID matches your proof of address document.