Banks, credit unions, and online platforms are your three main starting points
You can open a savings account at a traditional bank branch, a credit union, or an online bank. Each route has different requirements, different fees, and different ways you actually hand over your money to get your free guide. The choice depends on whether you want to walk into a physical location, whether you already have a relationship with an institution, and how much you're willing to pay in monthly fees.
Most people start where they already bank—if you have a checking account at Chase or Bank of America, opening a savings account there takes one visit or one phone call. But that's not always the cheapest option. Credit unions often charge no monthly fees and pay higher interest rates, though you have to be a member first. Online banks like Marcus, Ally, or Discover have no branches but typically offer the highest interest rates and no monthly fees at all.
Key Takeaways
- Traditional banks let you walk in and open an account same-day, but often charge monthly fees unless you keep a minimum balance.
- Credit unions typically have no monthly fees and higher interest rates, but you must meet membership requirements first—usually living or working in a specific area, or being related to a member.
- Online banks offer the highest interest rates and no monthly fees, but you cannot deposit cash in person and everything happens by mail, phone, or app.
- You will need a government ID, proof of address, and usually a Social Security number or ITIN to open an account anywhere.
- Some banks and credit unions offer accounts for people without credit history or with past banking problems, though fees may be higher.
Traditional banks: what to bring and what to expect
Walk into any branch of a major bank—Wells Fargo, Bank of America, Chase, Citibank—and you can open a savings account the same day. You will need a government-issued ID (driver's license, passport, or state ID), proof of your current address (a utility bill, lease, or bank statement dated within the last 60 days), and your Social Security number. Some banks also ask for a phone number and email address. The whole process takes 15 to 30 minutes.
The catch is fees. Most big banks charge a monthly maintenance fee—typically $5 to $15—unless you keep a minimum balance in the account. That minimum might be $500, $1,000, or $2,500 depending on the bank and the account type. If your balance drops below it, the fee hits automatically. Some banks waive the fee if you set up direct deposit or keep a linked checking account with them. Ask the banker directly what the fee is and what waives it before you sign anything.
Interest rates at traditional banks are usually low—often 0.01% to 0.05% on savings accounts. That means on $1,000, you earn less than a dollar a year. But if you already bank there and want the simplicity of one institution, the convenience may be worth the cost.
Credit unions: membership first, then the account
Credit unions are member-owned financial institutions that often charge no monthly fees and pay higher interest rates than banks. But you cannot just walk in—you have to be a member first. Membership requirements vary. Some credit unions serve everyone who lives or works in a specific county or city. Others are for employees of a particular company, members of a union, or people who belong to a specific organization. Some let you join if you're related to an existing member.
To find a credit union you can join, use the CO-OP Network locator or the Shared Branch locator on the Credit Union National Association website. Search by your zip code or employer. Once you find one that accepts you, you'll go in with your ID, proof of address, and Social Security number—the same documents a bank needs. You'll pay a one-time membership fee (usually $5 to $25) and sometimes a small deposit to open a share account, which is the credit union version of a checking or savings account. After that, monthly fees are rare.
Interest rates at credit unions are typically higher than at banks—sometimes 0.25% to 0.50% or more, depending on the credit union and how much you have in the account. The tradeoff is that credit unions have fewer branches and ATMs than big banks, though most participate in shared branching networks that let you use other credit unions' ATMs for free.
Online banks: highest rates, no branches, all digital
Online banks like Marcus (owned by Goldman Sachs), Ally, Discover, and American Express Personal Savings have no physical branches. You open an account entirely through their website or app, fund it by transferring money from another bank account or by mailing a check, and manage it all online. The process takes 10 to 15 minutes and you can do it from home.
You'll need the same documents: government ID, proof of address, and Social Security number. Most online banks verify your identity electronically by asking security questions based on your credit history, so you don't have to mail anything in. Once your account is open, you can transfer money in and out of any other bank account you own. You cannot deposit cash directly—if you need to deposit cash, you have to go to a branch of a partner bank or use a check.
The big advantage is interest rates. Online banks currently offer savings rates between 4% and 5.35%, depending on the bank and current market conditions. On $1,000, that's $40 to $53 a year instead of less than a dollar. There are no monthly fees, no minimum balance requirements, and no tricks. The tradeoff is that everything is digital—if you prefer talking to a person, most online banks have phone support but no branch to walk into.
What you need to bring or provide
No matter where you go, you will need the same core documents. Have a government-issued photo ID ready—a driver's license, state ID, or passport. You'll also need proof of your current address. A utility bill, lease agreement, or recent bank statement (dated within the last 60 days) all work. Some institutions accept a government document with your address on it, like a tax return or voter registration card.
You'll need your Social Security number. If you don't have one, you can use an Individual Taxpayer Identification Number (ITIN) instead, though not all banks accept it—call ahead and ask. Have your phone number and email address ready too. If you're opening an account at a bank where you already have a checking account, bring your account number or debit card to speed things up.
If you're opening an account in person at a bank or credit union, bring the originals of these documents. If you're opening online, you'll upload photos or scans of them. Make sure the address on your ID matches your current address, or bring a second document that shows your new address—banks are required to verify your address by law.
Special situations: no credit history or past banking problems
If you've never had a bank account before or had problems with a bank in the past, you still have options. Some banks and credit unions offer second-chance accounts or basic savings accounts designed for people in this situation. These accounts have higher fees (sometimes $10 to $20 per month) and lower limits on how much you can withdraw, but they let you build a banking history.
Chime, LendingClub, and some regional banks offer accounts with no credit check and no minimum balance. Credit unions are often more flexible than big banks about past problems—call ahead and explain your situation. Many will work with you if the problem was years ago or if you can show you've fixed it.
If you're unbanked or underbanked, start by calling your local credit union or asking 211 (a referral service) what accounts are available in your area for people in your situation. You may also find community development financial institutions (CDFIs) that specialize in serving people who've been locked out of traditional banking.
Comparing the three routes side by side
| Route | Where You Go | Time to Open | Monthly Fee | Interest Rate | Best For |
|---|---|---|---|---|---|
| Traditional Bank | Branch in person | Same day (15–30 min) | $5–$15 (unless minimum balance met) | 0.01%–0.05% | Convenience, existing relationship |
| Credit Union | Branch in person (after membership) | Same day (30–45 min) | Usually none | 0.25%–0.50%+ | Lower fees, higher rates, community focus |
| Online Bank | Website or app from home | 10–15 minutes | None | 4%–5.35% | Highest rates, no fees, digital-first |
Frequently Asked Questions
Can I open a savings account without a Social Security number?
You can use an Individual Taxpayer Identification Number (ITIN) instead, but not all banks accept it. Credit unions and online banks are sometimes more flexible than large national banks. Call ahead and ask before you go in or start an process.
What if I don't have proof of address?
Bring two forms of ID instead, or ask the bank what documents they accept. A lease, utility bill, or government document with your address on it all work. If you're homeless or living with someone else, ask the bank about alternative verification—some will accept a letter from a shelter or social service agency.
Do I have to open a checking account to open a savings account?
No. You can open a savings account on its own at any bank, credit union, or online bank. Some banks offer small discounts or fee waivers if you link a checking account, but it's not required.
Which option is fastest if I need the account today?
A traditional bank branch is fastest for same-day access. Walk in with your ID and proof of address, and you can have an account open and a debit card in hand within an hour. Online banks are faster to set up (10 minutes) but take one to three business days for transfers to clear.
What happens if I can't meet a bank's minimum balance requirement?
The monthly fee will be charged automatically. If fees are a problem, choose a credit union or online bank instead—most have no minimum balance and no monthly fees at all.