What you need to open a bank account
Most banks and credit unions will open an account for you in person or online if you bring a government-issued ID, proof of your current address, and your Social Security number or ITIN. The ID can be a driver's license, passport, or state ID card. Proof of address is usually a recent utility bill, lease, or bank statement with your name and address on it—typically from the last 60 days, though this varies by bank.
Some banks have lower barriers if you do not have a Social Security number yet. Credit unions and community banks often work with ITINs (Individual Taxpayer Identification Numbers) or even accept a passport and proof of address alone. Online banks typically require the same documents but let you upload photos instead of visiting a branch.
A few banks will open accounts for people without a traditional address—homeless shelters, mail forwarding services, or a trusted contact's address can work at some institutions. Call ahead to ask; policies vary widely.
Key Takeaways
- You need a government ID, proof of address from the last 60 days, and a Social Security number or ITIN to open most bank accounts.
- Credit unions and community banks often have fewer documentation requirements than large national banks.
- Online banks can be faster and let you upload documents instead of visiting a branch, but they still require the same basic proof of identity.
- If you have been denied at one bank, try a credit union or a bank that specializes in second-chance accounts.
Opening an account in person versus online
Opening in person takes 15 to 30 minutes. You walk into a branch with your documents, a banker verifies them, and you sign paperwork. Your account is usually active the same day or the next business day. You leave with a debit card order (which arrives in 7 to 10 days) and temporary access to your account number.
Opening online takes 10 to 15 minutes from your computer or phone. You upload photos of your ID and proof of address, answer security questions, and sign electronically. Most online banks activate your account within 24 hours. Your debit card arrives by mail in 7 to 14 days. Some online banks let you use a temporary card number immediately for online purchases while you wait for the physical card.
In-person opening is better if you need cash access immediately or want to ask questions face-to-face. Online opening is faster if you already have the documents scanned or photographed, and you avoid a trip to the branch.
What happens if you have been denied before
Banks check ChexSystems, a banking history report similar to a credit report. If you have unpaid overdrafts, closed accounts with a negative balance, or fraud flags, you may be denied. The bank will tell you why, and you can request your ChexSystems report for free at chexsystems.com to see what is on file.
If you were denied, try a second-chance checking account. These are designed for people with banking history problems. They usually have higher fees, lower initial deposit requirements, and no overdraft protection—but they report to ChexSystems, so after 6 to 12 months of clean activity, you can move to a standard account. Chime, LendingClub, and some regional banks offer second-chance accounts.
Credit unions are also more forgiving than large banks. They may overlook old ChexSystems marks or work with you to resolve old debts before opening an account. Call your local credit union and ask if they work with people who have been denied elsewhere.
Minimum deposits and account fees
Most banks no longer require a minimum deposit to open an account. You can open with $0 and deposit money later. Some banks still ask for $25 to $100, but this is becoming rare—check the bank's website or call before you visit.
Monthly maintenance fees range from $0 to $15, depending on the bank and account type. Many banks waive the fee if you maintain a minimum balance (often $500 to $1,500), set up direct deposit, or use their debit card a certain number of times per month. Online banks and credit unions typically charge $0 monthly fees.
Overdraft fees are separate from monthly fees. If you spend more than you have, the bank may charge $25 to $35 per overdraft. Some banks allow one free overdraft per year; others charge every time. Read the fee schedule before you open—it is usually on the bank's website under "Pricing" or "Disclosures."
Types of accounts: checking, savings, and money market
A checking account is for everyday spending. You get a debit card and checks, and you can make unlimited deposits and withdrawals. Most checking accounts pay little to no interest on your balance.
A savings account is for money you want to keep separate and grow. You can withdraw money, but some banks limit you to six withdrawals per month (though this rule is less common now). Savings accounts pay interest—usually 0.01% to 5.00% depending on the bank and current rates. Online banks and credit unions typically pay higher interest than large national banks.
A money market account is a hybrid. It works like a savings account but usually requires a higher minimum balance ($2,500 to $10,000) and pays higher interest. You get a debit card and checks, but withdrawal limits may apply. Money market accounts are useful if you have a larger amount to save and want both access and interest.
Most people start with a checking account. Once you have money to set aside, open a savings account at the same bank or move to a bank with higher savings rates.
Setting up direct deposit and linking other accounts
Direct deposit is when your employer or a government program (like Social Security) sends your payment straight to your bank account instead of a paper check. It usually takes 1 to 2 business days to arrive. To set it up, give your employer your bank's routing number and your account number—both are on the bottom left of a check, or you can ask the bank for them.
Linking other accounts lets you transfer money between your new bank account and accounts at other banks. You can link a savings account at a different bank, a credit card, or a PayPal account. The bank will ask for the account number and routing number, then send two small test deposits (usually under $1) to verify the account is yours. You confirm the amounts, and the link is active.
Both direct deposit and linked accounts take 1 to 3 business days to activate. Until then, you can still use your debit card or visit a branch to deposit cash.
What to do if you do not have a Social Security number
If you have an ITIN (Individual Taxpayer Identification Number), most banks will accept it in place of a Social Security number. You can get an ITIN from the IRS even if you are not a U.S. citizen. The process takes 2 to 4 weeks by mail or 15 minutes in person at an IRS office if you have an appointment.
If you do not have an ITIN yet, credit unions are often more flexible. Some will open an account with just a passport and proof of address, then help you get an ITIN later. Call ahead and ask which credit unions in your area work this way.
If you are undocumented and cannot get an ITIN, some community banks and credit unions will open an account with a passport and proof of address alone, though this is less common. Your best option is to contact local immigrant advocacy organizations—they often have lists of banks that work with undocumented people in your area.
Frequently Asked Questions
How long does it take to open a bank account?
In person: 15 to 30 minutes, account active same day or next business day. Online: 10 to 15 minutes, account active within 24 hours. Your debit card arrives by mail in 7 to 14 days either way.
Can I open an account without a Social Security number?
Yes. An ITIN works at most banks. Some credit unions and community banks accept a passport and proof of address without an ITIN. Call ahead to confirm the bank's policy.
What if I do not have proof of address?
A utility bill, lease, or recent bank statement works. If you do not have these, some banks accept a letter from a shelter, mail forwarding service, or a trusted contact. Call the bank first to ask what they accept.
Do I have to keep a minimum balance?
No. Most banks no longer require a minimum balance to open or keep an account. Some waive monthly fees if you maintain a balance, but you are not required to. Check the fee schedule before you open.
What is the difference between a bank and a credit union?
Banks are for-profit businesses; credit unions are member-owned nonprofits. Credit unions often have lower fees, higher savings rates, and more flexible lending. Both are insured by the federal government up to $250,000 per account.