The three main places to open a checking account
You can open a checking account at a traditional bank, a credit union, or an online bank. Each has different costs, requirements, and ways to access your money. The right choice depends on whether you want a physical branch nearby, how much you want to keep in the account, and what fees matter most to you.
Traditional banks like Chase, Bank of America, and Wells Fargo have branches in most cities. Credit unions are member-owned and often have lower fees, but you can only join if you meet their membership rules. Online banks like Ally, Charles Schwab, and Discover have no branches but usually charge no monthly fees and pay higher interest on deposits.
You do not have to choose based on where you live now. You can open an account at a bank with branches in another state, or at an online bank with no physical location at all. The main limit is that some banks require you to live in certain states or regions.
Key Takeaways
- Traditional banks offer in-person service and ATM networks but often charge monthly maintenance fees unless you meet balance or deposit requirements.
- Credit unions typically have lower fees and better interest rates but require membership, which may depend on your employer, location, or family ties.
- Online banks charge no monthly fees and pay higher interest but have no physical branches, so deposits and withdrawals happen by mail, ATM, or transfer.
- You will need a government ID, Social Security number, and proof of address to open an account at any institution.
- Some banks let you open an account online in minutes; others require a visit to a branch or a phone call with a representative.
Traditional banks: branches, fees, and balance requirements
A traditional bank gives you a physical location to visit, a teller to talk to, and a wide ATM network. Most large banks have hundreds or thousands of branches across the country. If you need to deposit cash, get a cashier's check, or speak to someone in person, a traditional bank is the easiest route.
The trade-off is cost. Most traditional banks charge a monthly maintenance fee—typically $10 to $15—unless you meet conditions. Common conditions include keeping a minimum balance (often $500 to $1,500), setting up direct deposit, or maintaining a linked savings account. If you fall short, you pay the fee every month.
Some traditional banks waive the fee for customers under 25 or over 65, or for students with a valid school ID. Others waive it if you use their debit card a certain number of times per month or keep a linked savings account open. Read the account terms carefully, because the conditions vary widely between banks and sometimes between branches of the same bank.
Credit unions: membership rules and lower costs
A credit union is owned by its members and typically charges lower fees than a traditional bank. Many credit unions have no monthly maintenance fee at all, and those that do often waive it more easily. Interest rates on savings accounts are usually higher at credit unions than at traditional banks.
The catch is membership. You cannot simply walk in and open an account. You must meet the credit union's membership rules, which vary by institution. Some credit unions are open to anyone who lives or works in a certain county. Others are limited to employees of a specific company, members of a particular organization, or people whose family members already belong.
To find a credit union you can join, start with CO-OP or Alliant, which are credit union networks that let you search by location or employer. You can also ask your employer's human resources department whether they sponsor a credit union. Once you confirm you are may be able to access, you can usually open an account online, by phone, or in person at a branch.
Online banks: no fees, higher interest, no branches
An online bank operates only through a website or mobile app. You cannot walk into a branch or speak to a teller in person. In return, online banks have almost no overhead, so they charge no monthly fees and often pay higher interest on checking and savings accounts than traditional banks do.
Deposits work differently at an online bank. You cannot hand cash to a teller. Instead, you deposit checks by taking a photo with your phone and uploading it through the app, or by mailing the check to the bank. Some online banks partner with ATM networks so you can withdraw cash for free at thousands of locations. Others reimburse ATM fees charged by other banks.
Opening an account at an online bank is fast—often 10 to 15 minutes on your phone. You will need your Social Security number, a government ID, and proof of address. The bank will verify your identity electronically, and your account is usually ready to use the same day or within 24 hours.
What you need to open an account anywhere
Every bank and credit union will ask for the same basic information. You need a government-issued ID (driver's license, passport, or state ID card), your Social Security number, and proof of your current address. Proof of address can be a recent utility bill, lease, mortgage statement, or bank statement in your name.
Some banks also ask for a second form of ID or a phone number where they can reach you. If you are opening an account online, the bank will verify your identity electronically by asking questions about your credit history or checking your information against public records. This takes a few minutes and does not affect your credit score.
If you do not have a Social Security number, some banks and credit unions will open an account using an Individual Taxpayer Identification Number (ITIN) instead. Call ahead to confirm, because not all institutions offer this option.
Comparing costs: monthly fees, minimum balances, and ATM access
| Type | Monthly Fee | Minimum Balance | ATM Access |
|---|---|---|---|
| Traditional Bank | $10–$15 (often waived) | $500–$1,500 (varies) | Thousands of branch ATMs |
| Credit Union | $0–$5 (often waived) | $0–$500 (varies) | CO-OP or Alliant network |
| Online Bank | $0 | $0 | Partnered networks or fee reimbursement |
The real cost difference shows up over time. If you keep $300 in a traditional bank account that requires $500 minimum, you pay the monthly fee every month—$120 to $180 per year. The same account at a credit union or online bank costs nothing.
ATM access matters if you use cash regularly. Traditional banks have the most ATMs in most areas. Credit unions share ATM networks, so your card works at thousands of locations nationwide. Online banks either partner with ATM networks or reimburse fees you pay at other banks, so you can withdraw cash almost anywhere.
How to decide: questions to ask yourself
Start by thinking about how you use money. Do you deposit cash regularly? If yes, a traditional bank or credit union with branches is easier than an online bank. Do you need to speak to someone in person? Traditional banks and credit unions have staff available. Online banks offer phone and email support but no face-to-face meetings.
Next, consider your balance. If you can keep $500 or more in the account most of the time, a traditional bank's minimum balance requirement is not a problem. If your balance drops below that regularly, an online bank or credit union with no minimum is cheaper.
Finally, think about convenience. If there is a bank branch near your home or work, a traditional bank is convenient. If you are comfortable managing money on your phone and do not need to deposit cash, an online bank saves you money. If you work for a company or belong to an organization with a credit union, that is often the cheapest option.
Frequently Asked Questions
Can I open a checking account online if I do not have a physical address?
Most banks require a current address for verification and mailing statements. If you are homeless or living temporarily, use the address of a shelter, a trusted friend or family member, or a mail forwarding service. Call the bank first to confirm they will accept it.
What if I have a bad banking history or was reported to ChexSystems?
ChexSystems is a database banks use to check your history of overdrafts and closed accounts. Some banks will not open an account if you are on the list. Others specialize in second-chance banking and will work with you. Ask the bank directly whether they use ChexSystems and whether they have accounts for people with banking history issues.
Do I need to keep a minimum balance to avoid fees?
It depends on the bank. Traditional banks often waive monthly fees if you keep a minimum balance or set up direct deposit. Credit unions and online banks usually have no minimum balance requirement at all. Check the account terms before you open.
Can I open an account if I am under 18?
Yes, but you will need a parent or guardian to co-sign. Some banks offer teen checking accounts with parental controls. Others require a parent to be a joint owner. Call the bank to ask about their policy for minors.
How long does it take to open an account?
Online banks can open an account in 10 to 15 minutes. Traditional banks and credit unions may take 15 to 30 minutes in person, or a few hours if you do it online. Your account is usually ready to use the same day or within 24 hours.