The main places to open a checking account
You can open a checking account at a traditional bank branch, a credit union, or an online bank. Each has different requirements, fees, and how quickly you can start using the account. The choice depends on whether you want in-person service, low fees, or the ability to deposit checks from your phone.
Traditional banks like Chase, Bank of America, and Wells Fargo have physical branches where you can walk in, speak to someone, and deposit cash or checks in person. Credit unions are member-owned financial institutions that often charge lower fees and offer better interest rates, but membership is usually limited to people who work in a certain industry, live in a certain area, or belong to a certain organization. Online banks like Ally, Charles Schwab, and Chime have no physical locations but typically charge no monthly fees and let you open an account in minutes from your phone or computer.
Key Takeaways
- Traditional banks offer in-person service and cash deposits at branches, but often charge monthly maintenance fees unless you meet balance or direct deposit requirements.
- Credit unions typically charge lower fees and offer better rates than banks, but you must be a member of the credit union to open an account there.
- Online banks have no monthly fees and let you open an account instantly, but you cannot deposit cash in person and may need to mail checks or use mobile deposit.
- You will need a government-issued ID, proof of address, and your Social Security number to open an account at any institution.
- Some accounts are designed for people with no banking history or a negative banking record and may have lower opening balances or different verification steps.
Traditional banks and what they require
A traditional bank branch requires you to bring 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. The teller or new accounts representative will verify this information, run a check on your banking history through ChexSystems or Early Warning Services, and then open the account on the spot. You can usually deposit cash or a check immediately and receive a debit card within 7 to 10 business days.
Most traditional banks charge a monthly maintenance fee of $10 to $15, but waive it if you maintain a minimum balance (often $500 to $1,500), set up direct deposit, or meet other conditions. Some banks also charge fees for overdrafts, out-of-network ATM use, or falling below the minimum balance. Ask the teller or check the bank's website for the full fee schedule before you open the account, because fees vary widely between institutions and between account types at the same bank.
If you have been denied a checking account in the past or have a record of overdrafts or fraud, some traditional banks offer second-chance checking accounts. These accounts may require a higher opening deposit, have lower spending limits, or charge higher fees, but they are designed for people rebuilding their banking history. Ask the bank whether they offer this option.
Credit unions and membership requirements
A credit union works like a bank but is owned by its members rather than shareholders. Credit unions typically charge lower fees, offer better interest rates on savings, and have more lenient policies on overdrafts and minimum balances. However, you can only open an account at a credit union if you meet their membership requirements, which vary by credit union.
Common membership requirements include living or working in a specific geographic area, working in a specific industry (teachers, nurses, government employees), belonging to a specific organization (military, union, church), or having a family member who is already a member. To find a credit union you can join, search the CO-OP Network or Alliant Credit Union's locator tool online, or ask your employer whether they sponsor a credit union for employees.
Once you confirm you are a member, you can open an account with the same documents you would need at a bank: a government-issued ID, proof of address, and your Social Security number. Many credit unions let you open an account online or by phone, and some mail you a debit card within a few business days. Credit unions also run a ChexSystems check, so a history of overdrafts or fraud may still disqualify you, though credit unions are often more flexible than banks on this point.
Online banks and instant account opening
An online bank has no physical branches, so you cannot walk in to deposit cash or speak to someone face-to-face. Instead, you download the bank's app or visit their website, enter your personal information, upload a photo of your ID and proof of address, and verify your identity through a video call or by answering security questions. The entire process takes 10 to 20 minutes, and your account is usually active within hours.
Online banks charge no monthly maintenance fees, no overdraft fees (some simply decline transactions instead), and no fees for out-of-network ATM use (some reimburse ATM fees at the end of each month). The tradeoff is that you cannot deposit cash in person. Instead, you deposit checks by taking a photo with your phone, and you withdraw cash at ATMs or by transferring money to another bank. Some online banks partner with retail chains like Walmart or CVS to let you withdraw cash without a card.
Online banks still run a ChexSystems check, so a negative banking history may disqualify you. However, some online banks like Chime and LendingClub are designed for people with no banking history or poor credit, and they may not run a ChexSystems check at all. Check the bank's website or call their customer service line to ask whether they have accounts for people with banking issues.
What documents you need to bring or upload
Every bank and credit union requires the same three pieces of information: a government-issued photo ID, proof of your current address, and your Social Security number. The ID can be a driver's license, passport, state ID card, or tribal ID. The proof of address must be dated within the last 60 days and can be a utility bill, lease agreement, mortgage statement, or bank statement in your name.
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, though this is less common. Call ahead to ask. If you do not have a government-issued ID, some credit unions and second-chance checking programs will open an account using a passport, consular ID, or other documents, but you will need to ask the specific institution what they accept.
At a physical branch, bring the originals. For online accounts, you will upload photos or scans of these documents through the bank's app or website. Make sure the photos are clear, show the entire document, and are not blurry or cut off, because the bank may reject them and ask you to resubmit.
Comparing fees and features across account types
| Account Type | Monthly Fee | Minimum Balance | Cash Deposits | In-Person Service |
|---|---|---|---|---|
| Traditional Bank | $10–$15 (often waived) | $500–$1,500 (varies) | Yes, at branches | Yes |
| Credit Union | $0–$5 (usually lower) | $0–$500 (usually lower) | Yes, at branches | Yes |
| Online Bank | $0 | $0–$100 (usually low) | No, phone deposit only | No |
The lowest-cost option is usually an online bank, because they charge no monthly fees and no minimum balance. However, if you deposit cash regularly or need to speak to someone in person, a credit union often offers the best balance of low fees and convenience. Traditional banks are most useful if you need to deposit cash frequently and do not mind paying a monthly fee or maintaining a minimum balance.
Before you open an account, compare the fee schedules of at least two or three institutions. Many banks and credit unions publish their fee schedules online, and you can also call or visit a branch to ask. Pay attention to overdraft fees, ATM fees, and fees for falling below the minimum balance, because these can add up quickly if you are not careful.
How long it takes to open an account and start using it
At a physical bank or credit union branch, you can open an account and receive a temporary debit card on the same day. Your permanent card arrives by mail within 7 to 10 business days. You can start using your account immediately by writing checks (if the bank provides a checkbook) or by transferring money to pay bills online.
At an online bank, your account is active within hours of opening it, and you can start transferring money and paying bills immediately. However, your debit card arrives by mail within 7 to 10 business days, so you cannot use it in stores until then. Some online banks issue a temporary card number that you can use online right away.
If the bank runs a ChexSystems check and finds a problem with your banking history, they may deny your application or place a hold on your account while they investigate. This can take a few days to a few weeks. If you are denied, the bank must tell you why and provide you with contact information for ChexSystems so you can dispute any errors in your report.
What to do if you are denied an account
If a bank or credit union denies your application, ask them to explain why. The most common reasons are a negative ChexSystems report (overdrafts, fraud, or unpaid fees at another bank), a low credit score, or an address that does not match your ID. Some of these issues can be fixed.
If the problem is a ChexSystems report, you can dispute errors by contacting ChexSystems directly at 1-800-428-9623 or through their website. If the problem is unpaid fees or overdrafts at another bank, you may be able to pay them off and then reapply. If the problem is your address, bring a new proof of address and try again.
If you are denied at a traditional bank, try a credit union or an online bank designed for people with banking issues. These institutions often have more lenient policies and may not run a ChexSystems check at all. You can also look for a second-chance checking account, which is specifically designed for people who have been denied elsewhere.
Frequently Asked Questions
Can I open a checking account without a Social Security number?
Some banks and credit unions will open an account using an Individual Taxpayer Identification Number (ITIN) if you do not have a Social Security number. Call the institution ahead of time to ask whether they offer this option, because it is not standard.
How much money do I need to open a checking account?
Most banks and credit unions require an opening deposit of $25 to $100, though some online banks require nothing. The opening deposit is not the same as the minimum balance you must maintain to avoid fees. Check the institution's website or call to ask about both amounts.
What happens if I close my account and open a new one at the same bank?
If you closed an account due to overdrafts or fraud, the bank may deny you when you try to open a new account. ChexSystems keeps records for up to five years. If you want to bank at the same institution again, wait at least a year and then ask whether they will reconsider your application.
Can I open a checking account if I have been evicted or have bad credit?
Eviction and bad credit do not automatically disqualify you from opening a checking account. Banks and credit unions check ChexSystems (banking history) and sometimes run a credit check, but these are separate. You may be denied for banking issues but not for credit issues, or vice versa. Online banks and second-chance checking accounts are often more lenient.
Do I need to open a savings account at the same place as my checking account?
No. You can open a checking account at one bank and a savings account at another. However, many banks offer discounts or waive fees if you have both accounts with them, so ask about this when you open your checking account.