Banks, credit unions, and online-only institutions all offer checking accounts, and where you open one depends on what you need most: in-person service, low fees, or convenience.
You have three main routes: a traditional bank with physical branches, a credit union, or an online bank that operates only through apps and websites. Each has different costs, requirements, and ways to deposit money or get help. The choice comes down to whether you value walking into a location, keeping fees low, or accessing your account from anywhere without paperwork.
Before you choose, know that most institutions will ask for a government ID, proof of address (a utility bill or lease works), and sometimes a Social Security number or ITIN. Some will also run a ChexSystems check — a banking history report that flags accounts you closed with a negative balance or fraud. If you have been denied before, ask whether the institution uses ChexSystems or has its own rules.
Key Takeaways
- Banks offer branches and ATMs but often charge monthly fees unless you keep a minimum balance or set up direct deposit.
- Credit unions typically have lower fees and higher interest on savings, but you must be a member of the organization or group they serve.
- Online banks have no monthly fees and higher savings rates, but you cannot deposit cash in person and customer service is phone or chat only.
- You will need a government ID and proof of address; some institutions also check your banking history through ChexSystems.
- Opening an account takes 10 to 30 minutes in person or online, and your debit card arrives in 5 to 10 business days.
Traditional banks: branches, ATMs, and monthly fees
A traditional bank is what most people think of first — a building you can walk into, tellers at a counter, and ATMs on every corner. Banks like Wells Fargo, Bank of America, Chase, and regional institutions like PNC or U.S. Bank fall into this category. The advantage is convenience: you can deposit cash, get a cashier's check, or talk to someone face-to-face if something goes wrong.
The trade-off is cost. Most banks charge a monthly maintenance fee — typically $10 to $15 — unless you meet one of their conditions. Common ways to avoid the fee are keeping a minimum balance (often $500 to $1,500), setting up direct deposit, or maintaining a savings account with them. Some banks waive the fee for students or seniors. Read the fee schedule before you open; it is usually on their website under "Checking Account" or "Account Fees."
Opening an account at a bank takes 20 to 30 minutes in person or 10 to 15 minutes online. You will need your ID, proof of address, and Social Security number. Your debit card arrives in 5 to 10 business days, and you can start using your account immediately with a temporary card or mobile wallet.
Credit unions: membership, lower fees, and better rates
A credit union is a nonprofit financial institution owned by its members. You cannot just walk in and open an account — you have to be a member first, which usually means you work for a certain employer, live in a specific area, or belong to an organization the credit union serves. For example, some credit unions are only for teachers, military members, or people who live in a particular county.
The benefit of credit unions is lower fees and higher interest rates on savings. Many charge no monthly maintenance fee at all, and those that do often waive it more easily than banks do. If you overdraft, the fee is usually lower too. To find a credit union you can join, search the CO-OP network or Allpoint network websites, which list credit unions by location and membership rules.
Opening an account works the same way as at a bank — bring your ID, proof of address, and Social Security number — but you may also need to show proof that you meet their membership requirement (a pay stub, lease, or membership card). The process takes 20 to 30 minutes in person. Your debit card arrives in 5 to 10 business days.
Online banks: no fees, no branches, no cash deposits
An online bank exists only as an app or website. Institutions like Ally, Charles Schwab, Chime, and Capital One 360 have no physical locations, no tellers, and no ATMs of their own. What they offer instead is no monthly fees, higher interest on savings accounts, and the ability to open an account in 10 minutes from your phone.
The main limitation is that you cannot deposit cash. You can transfer money from another bank account, receive direct deposit, or use mobile check deposit (photograph a check and upload it through the app). If you need to deposit cash regularly — for example, if you are paid in cash — an online bank is not a good fit. Some online banks partner with ATM networks so you can withdraw cash for free, but depositing cash is not an option.
Customer service is phone or chat only, not in person. For most questions, this is fine; for complex problems, it can be slower. Opening an account takes 10 to 15 minutes online. You will need your ID, proof of address, and Social Security number. Your debit card arrives in 5 to 10 business days, and many online banks offer a temporary card number you can use immediately in your mobile wallet.
Accounts for people with banking history problems
If you have been denied a checking account before, it was likely because of a ChexSystems report — a record of closed accounts with negative balances, fraud, or repeated overdrafts. Some banks and credit unions do not use ChexSystems and will open an account for you anyway. Others use it but are more forgiving than major banks.
Second-chance checking accounts are designed for people in this situation. They often have higher fees, lower limits on debit card transactions, or require a deposit, but they let you rebuild your banking history. Credit unions are often more flexible than banks. Online banks like Chime and LendingClub do not use ChexSystems at all. Call ahead and ask whether the institution checks ChexSystems and what their policy is for people with past issues.
What to bring and what to expect on opening day
Bring a government-issued photo ID (driver's license, passport, or state ID card), proof of your current address (a utility bill, lease, or bank statement dated within the last 60 days), and your Social Security number or ITIN. Some institutions also ask for a second form of ID or a phone number to verify.
The person opening your account will ask how you plan to use it — direct deposit, transfers, cash deposits — and may ask about your employment or income. This is routine; they are not judging you, just filling out required forms. You will also choose a PIN for your debit card and set up online banking access. The whole process takes 20 to 30 minutes in person, 10 to 15 minutes online.
Your account is active immediately, but your debit card takes 5 to 10 business days to arrive by mail. Most institutions give you a temporary card number or let you add your account to your phone's mobile wallet so you can spend money right away.
Comparing the three options side by side
| Feature | Traditional Bank | Credit Union | Online Bank |
|---|---|---|---|
| Monthly fee | $10–$15 (often waived) | $0–$5 (often waived) | $0 |
| In-person service | Yes | Yes | No |
| Cash deposits | Yes | Yes | No |
| ATM access | Extensive network | CO-OP or Allpoint network | Partner network (varies) |
| Opening time | 20–30 min (in person) | 20–30 min (in person) | 10–15 min (online) |
| Savings interest rate | Very low | Higher than banks | Highest |
| Overdraft fee | $25–$35 | $15–$25 | $0–$15 |
Frequently Asked Questions
Can I open a checking account without a Social Security number?
Yes, if you have an ITIN (Individual Taxpayer Identification Number). Most banks and credit unions accept an ITIN in place of a Social Security number. You will still need a government ID and proof of address. Call ahead to confirm the institution accepts ITINs, because not all do.
What if I do not have a proof of address?
Bring a recent bank statement, utility bill, lease, or mortgage statement dated within the last 60 days. If you do not have any of these, some institutions will accept a government letter (like a tax return or benefit notice) or a cell phone bill. Call the bank or credit union first to ask what they accept.
How long does it take to use my account after I open it?
Your account is active immediately, but your physical debit card takes 5 to 10 business days to arrive. Most banks and online institutions let you add your account to your phone's mobile wallet or give you a temporary card number so you can spend money the same day.
What happens if I get denied?
Ask why. If it is because of ChexSystems, you can request a copy of your report and dispute errors. If it is because of your ID or address, bring different documents. If multiple banks have denied you, look for a second-chance checking account or a credit union that does not use ChexSystems.
Can I have more than one checking account?
Yes. There is no rule against opening accounts at multiple banks or credit unions. Some people do this to separate spending from savings, or to take advantage of different fee structures. Just keep track of minimum balances and monthly fees so you do not get charged for accounts you forget about.