What you need to open a savings account

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. Some will also ask for a second form of ID or a utility bill dated within the last 60 days. A few institutions let you open an account online without visiting a branch, though they may still mail you a card or require a video call to verify your identity.

You do not need a minimum deposit to open most savings accounts, though some banks require $25 to $100 to set up the account. A handful of institutions have no minimum at all. The account itself is free to open — you pay fees only if you fall below a balance requirement later, make too many withdrawals in a month, or maintain a zero balance for an extended period.

If you do not have a Social Security number, some credit unions and online banks will open accounts using an Individual Taxpayer Identification Number (ITIN) instead. Call ahead to confirm, because policies vary widely.

Key Takeaways

  • You will need a government ID, proof of address, and a Social Security number or ITIN to open an account at most institutions.
  • Many banks and credit unions have no minimum deposit requirement, though some ask for $25 to $100 to set up the account.
  • Online banks often have lower fees and higher interest rates than brick-and-mortar branches, but you cannot deposit cash in person.
  • Credit unions typically offer lower fees and more flexible lending rules than traditional banks, though you may need to meet membership requirements first.
  • Once your account is open, you can usually start depositing money the same day through direct deposit, transfers, or mobile check deposit.

Where to open an account: banks versus credit unions versus online

A traditional bank has physical branches where you can deposit cash, speak to a teller, and get a debit card on the spot. Banks are insured by the Federal Deposit Insurance Corporation (FDIC), which means your money is protected up to $250,000 if the bank fails. Most banks charge monthly maintenance fees ($5 to $15) unless you maintain a minimum balance or set up direct deposit.

A credit union is a member-owned cooperative that usually charges lower fees and pays higher interest on savings. You must meet membership requirements — often living or working in a specific area, belonging to a certain employer, or being part of a community group. Credit unions are insured by the National Credit Union Administration (NCUA), which offers the same $250,000 protection as FDIC insurance. Many credit unions waive monthly fees entirely.

Online banks have no physical branches but let you open an account in minutes from your phone or computer. They typically offer the highest interest rates and the lowest fees because they have no building costs. The trade-off is that you cannot deposit cash in person — you must use direct deposit, transfers from another bank, or mobile check deposit. Online banks are also FDIC-insured.

Steps to open an account in person or online

If you are opening an account at a physical branch, bring your ID, proof of address (a utility bill, lease, or bank statement), and your Social Security number. Walk into any branch during business hours, tell a teller you want to open a savings account, and they will walk you through the paperwork. You can usually open the account and receive a debit card the same day, though the card may take 7 to 10 days to arrive by mail.

If you are opening an account online, visit the bank's website or read their app. You will enter your personal information, upload photos of your ID and proof of address, and verify your identity — usually by answering security questions or confirming recent transactions from another bank account. Some online banks require a video call with a representative. Once approved, you can start using the account within hours, though your debit card will arrive by mail in 5 to 10 business days.

After your account opens, you can deposit money through direct deposit (the fastest method), transfers from another bank account, mobile check deposit (if the bank offers it), or by visiting a branch with cash. Direct deposit typically takes one to two business days; transfers and check deposits usually take the same day or next business day.

Understanding fees and interest rates

Most savings accounts charge a monthly maintenance fee ($5 to $15) if your balance falls below a set amount — often $500 to $2,500 — or if you do not set up direct deposit. Some accounts waive the fee if you maintain a minimum balance; others waive it if you receive at least one direct deposit per month. Read the fee schedule before you open the account, because fees vary dramatically between institutions.

Interest rates on savings accounts are currently low across the industry, typically ranging from 0.01% to 5.00% depending on the bank and account type. Online banks and credit unions usually offer higher rates than traditional banks. The rate your account earns is called the Annual Percentage Yield (APY). Interest is usually calculated daily and deposited monthly, though some banks deposit it quarterly.

Some accounts charge a withdrawal fee if you make more than six withdrawals per month, though this rule is less common now. A few accounts charge a fee if you close the account within a certain period — usually 90 days to one year. Always ask about these rules before opening.

What happens after you open your account

Once your account is active, you will receive a debit card by mail (usually within 7 to 10 business days) and online access to check your balance and transfer money. You can set up direct deposit with your employer or benefit provider by giving them your account number and routing number — both appear on the bottom left of your checks or in your online banking portal.

You can also link your savings account to another bank account you own and transfer money between them. Most transfers take one to two business days. If you need to withdraw cash, you can visit any branch of your bank or use an ATM — some banks charge a fee if you use an ATM outside their network.

Your account will earn interest each month based on your balance and the APY. The bank will send you a statement monthly (usually by email) showing deposits, withdrawals, interest earned, and any fees charged. Review this statement to catch errors or unexpected charges.

If you have no ID or Social Security number

If you do not have a government-issued ID, some credit unions and online banks will open an account using a passport, state ID card, or tribal ID. A few institutions will accept a letter from a government agency or a utility bill as proof of identity instead of a photo ID.

If you do not have a Social Security number, you can use an Individual Taxpayer Identification Number (ITIN) instead. Some credit unions and online banks will open accounts with an ITIN; others will not. Call the institution directly to ask before you visit or explore online. You may also be able to open a joint account with someone who has a Social Security number, though policies vary.

If you are unhoused or do not have a permanent address, some banks and credit unions will accept a shelter address, a PO box, or a care-of address (c/o another person's address). Again, call ahead to confirm the institution's policy.

Frequently Asked Questions

Can I open a savings account if I have been denied by other banks?

Yes. Banks check ChexSystems, a database of banking history, when you open an account. If you were denied before, you can still open an account at a different bank or credit union — they may have different standards. Credit unions and online banks are often more flexible than large national banks. You can also request a copy of your ChexSystems report to see what is listed.

How much money do I need to open an account?

Most banks and credit unions have no minimum deposit requirement. Some ask for $25 to $100 to set up the account, which you can deposit when ready. A few online banks have no minimum at all. Check the specific institution's requirements before you open.

What is the difference between a savings account and a checking account?

A savings account is designed for money you want to keep and grow; it usually limits how many times you can withdraw per month and pays interest. A checking account is for everyday spending; it has unlimited withdrawals and usually no interest. Many people have both.

How long does it take to open an account?

At a physical branch, opening takes 15 to 30 minutes. Online, it takes 5 to 15 minutes, though approval may take a few hours to one business day. You can usually start using the account when ready; your debit card arrives by mail in 5 to 10 business days.

Is my money safe in a savings account?

Yes, as long as the bank or credit union is FDIC or NCUA insured. Your deposits are protected up to $250,000 per account owner per institution. If the bank fails, the insurance covers your balance. Check the bank's website or call to confirm it is insured before you open an account.