What you need before you walk in or go online

Most banks and credit unions will ask for two things: proof of who you are, and proof of where you live. A driver's license or state ID covers both. If you don't have either, a passport works for identity, and a recent utility bill, lease, or bank statement works for address.

You'll also need an opening deposit. This varies by institution — some credit unions ask for $25, some banks ask for $100, and some have no minimum at all. Call or check the website before you go in, because showing up without enough cash wastes a trip.

If you're opening an account online, you may be able to verify your identity through your phone camera instead of in person. The bank will ask you to photograph your ID and sometimes your face. This process usually takes a few minutes.

Key Takeaways

  • You need a government-issued ID and proof of address — a driver's license covers both, or bring a passport plus a utility bill.
  • Opening deposits range from zero to $100 depending on the bank or credit union, so confirm the amount before you arrive.
  • Online accounts can be opened in 10 to 20 minutes from your phone, while in-person accounts usually take 15 to 30 minutes.
  • Once your account is open, you can deposit money by transfer, direct deposit, mobile check deposit, or in-person at a branch or ATM.
  • Monthly fees vary widely — some accounts have no fees, while others charge $5 to $15 if you don't meet a minimum balance or deposit requirement.

Opening in person at a bank or credit union branch

Walk in during business hours with your ID, proof of address, and your opening deposit. Tell the teller you want to open a savings account. They will hand you a form or pull one up on a computer and ask for your name, date of birth, Social Security number, and current address.

The teller will explain the account terms: what the interest rate is (if any), what the monthly fee is (if any), and what the minimum balance is to avoid that fee. Read this carefully. Some accounts pay interest on balances as small as $1; others pay nothing. Some charge a fee if your balance drops below $500; others never charge a fee.

Once you sign, the account opens when ready. You'll get a debit card in the mail within 5 to 10 business days, and you can start using the account right away through online banking or by visiting the branch.

Opening online through a bank or credit union website

Go to the bank's website and look for a button that says "Open an Account" or "New Account." You'll enter your name, date of birth, Social Security number, and address. The site will ask you to photograph your ID with your phone camera — hold it steady and make sure all four corners are visible.

Some banks also ask you to photograph your face or take a short video of yourself saying a few words. This is a security step to confirm you're the person in the ID. It takes less than a minute.

Once the bank verifies your identity, the account opens. You can log in when ready and set up transfers or direct deposit. Your debit card arrives in 5 to 10 business days. Some online-only banks (like Ally or Marcus) don't issue debit cards at all — you move money out through transfers instead.

Understanding fees and interest rates

Monthly maintenance fees range from zero to $15. Some banks waive the fee if you keep a minimum balance (often $500 or $1,000), make a certain number of deposits per month, or set up direct deposit. Others never charge a fee, period. If you're on a tight budget, look for a no-fee account.

Interest rates on savings accounts vary. As of early 2024, online banks typically pay 4% to 5% annual interest on savings, while traditional banks often pay 0.01% to 0.5%. The difference matters: on a $1,000 balance, you'd earn roughly $40 to $50 per year at an online bank, or less than $5 at a traditional bank. Credit unions sometimes fall in between.

Interest is usually compounded daily and deposited monthly. You don't have to do anything — the bank adds it automatically.

Getting money into your new account

Once the account is open, you can deposit money in several ways. Direct deposit is the fastest: give your employer or benefits program your account number and routing number (both on your debit card or in online banking), and the money lands automatically on payday. Mobile check deposit lets you photograph a check with your phone and send it to the bank — the funds usually appear within one business day. In-person deposit at a branch or ATM works when ready if you're depositing cash, or within one business day for checks.

You can also transfer money from another bank account you own. Log into online banking, select "Transfer," and enter the other account's routing and account number. The transfer usually takes one to three business days.

What happens if you need to close the account later

You can close a savings account at any time with no penalty. Call the bank, visit a branch, or log into online banking and request closure. The bank will ask where to send any remaining balance — they can transfer it to another account you own, or mail you a check. This usually takes three to five business days.

If you have a negative balance (you owe the bank money), you'll need to pay that before closing. If you have a positive balance, you'll receive it in full.

Choosing between a bank and a credit union

Banks are for-profit companies. Credit unions are member-owned nonprofits. In practice, this means credit unions often charge lower fees and pay slightly higher interest, but they may have fewer branches and ATMs. Banks have more locations and more online features, but often charge higher fees.

Both are insured the same way: the Federal Deposit Insurance Corporation (FDIC) insures bank accounts, and the National Credit Union Administration (NCUA) insures credit union accounts. Either way, your money is protected up to $250,000 if the institution fails.

If you have a choice between a local credit union and a national bank, compare the fees and interest rates side by side. The difference over a year can be $20 to $100 depending on your balance.

Frequently Asked Questions

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

Most banks require one. If you don't have a Social Security number, some banks will open an account using an Individual Taxpayer Identification Number (ITIN) instead. Call ahead and ask — not all branches handle ITIN accounts, but many do.

Can I open an account if I'm under 18?

Yes, but you'll need a parent or guardian to co-sign. The adult's name will be on the account alongside yours, and they can see all transactions. Once you turn 18, you can remove them or open a separate account in your name alone.

What if I don't have a government ID?

Some banks will open an account with a passport, tribal ID, or military ID. Others require a state ID or driver's license specifically. Call the bank and ask what documents they accept — requirements vary by location.

How long does it take to start using the account?

Online accounts are ready to use when ready for transfers and bill pay. In-person accounts are also ready when ready, though your debit card arrives in 5 to 10 business days. Deposits you make take one to three business days to clear, depending on the method.

Can I have more than one savings account?

Yes. You can open multiple accounts at the same bank or at different banks. Some people keep one account for emergencies and another for a specific goal. There's no limit, though each account counts separately toward the $250,000 FDIC insurance limit.