What you need to open a bank account
To open a bank account, you need a government-issued photo ID, proof of your current address, and your Social Security number. Most banks will also ask for an initial deposit, though the amount varies—some require $25, others $100 or more, and some have no minimum at all. A few banks waive the deposit requirement if you set up direct deposit from your employer.
You can open an account in person at a branch, over the phone, or online. In-person is slowest but gives you a chance to ask questions. Online is fastest—many accounts open in 10 to 15 minutes and are ready to use the same day. Phone applications take 20 to 30 minutes and require you to verify your identity by answering security questions or providing additional documents.
If you do not have a photo ID, some banks will accept a combination of documents instead: a utility bill or lease for your address, a Social Security card, and a birth certificate. Call ahead to ask what your specific bank accepts, because policies differ.
Key Takeaways
- You will need a government photo ID, proof of address, and your Social Security number; the initial deposit amount varies by bank and account type.
- Online applications are fastest and often complete within 15 minutes, while in-person applications take longer but let you ask questions directly.
- Some banks waive the minimum deposit if you set up direct deposit from your paycheck.
- If you lack a photo ID, bring a combination of documents like a utility bill, Social Security card, and birth certificate—but call the bank first to confirm what they will accept.
- Your account is usually active the same day for online applications, or within one business day for in-person or phone applications.
Choosing between checking, savings, and money market accounts
A checking account is designed for frequent deposits and withdrawals. You get a debit card and checks, and there are usually no limits on how many transactions you can make per month. Most checking accounts pay little or no interest on your balance.
A savings account is meant to hold money you are not spending right away. 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 on your balance, though the rate is usually low—often between 0.01% and 0.5% depending on the bank and the current interest rate environment.
A money market account combines features of both. It pays higher interest than a savings account but may require a larger minimum balance and limit your monthly withdrawals. Money market accounts are useful if you have several thousand dollars you want to keep accessible but earning more than a regular savings account would pay.
Most people start with a checking account for daily spending and a savings account for money they want to set aside. If you have a large balance and want the highest interest rate, compare money market accounts and high-yield savings accounts at online banks, which often pay more than traditional banks.
What happens during the application process
When you apply, the bank will verify your identity by checking your Social Security number against credit bureaus and government databases. This is called a soft pull and does not affect your credit score. The bank is confirming you are who you say you are, not checking whether you pay your bills on time.
The bank will also check ChexSystems, a database that tracks banking history. If you have unpaid overdrafts, closed accounts with a negative balance, or multiple accounts opened and closed in a short time, ChexSystems will flag this. Some banks will still open an account for you; others will decline. If you are declined, you can request your ChexSystems report and dispute any errors.
After verification, the bank will fund your account with your initial deposit (if required) and issue you a debit card and checks. Debit cards usually arrive within 7 to 10 business days. Checks take 1 to 2 weeks. Your account number and routing number are available immediately online, so you can set up direct deposit or bill pay right away.
Opening an account with no credit history or a banking problem
If you have never had a bank account, you can open one just as easily as anyone else. You do not need credit history to open a checking or savings account—banks do not check your credit score. You only need ID, proof of address, and your Social Security number.
If you have been declined by banks in the past, it is usually because of ChexSystems, not credit. Common reasons for ChexSystems flags include unpaid overdrafts, accounts closed with a negative balance, or opening multiple accounts in a short period. You can order your ChexSystems report for free at www.chexsystems.com and dispute any errors.
If ChexSystems is the problem, look for second-chance banking accounts. These are designed for people with banking history issues. They often have higher fees and lower limits on debit card transactions, but they let you rebuild your banking record. After 12 to 24 months of good standing, you can usually move to a standard account.
Online banks and credit unions are sometimes more flexible than large national banks. If you are declined at one bank, try another—policies vary widely.
Fees to watch for
Most banks charge a monthly maintenance fee, though many waive it if you meet certain conditions: maintaining a minimum balance (often $500 to $1,500), setting up direct deposit, or using the bank's mobile app. Some banks have no monthly fee at all.
Overdraft fees occur when you spend more money than you have in your account. A single overdraft can cost $25 to $35. If you overdraft multiple times in one day, you may be charged multiple fees. You can usually prevent overdrafts by turning on overdraft protection, which links your checking account to a savings account or credit line and automatically transfers money when you run short.
Other common fees include ATM fees (charged when you use another bank's ATM), wire transfer fees ($15 to $30 per wire), and foreign transaction fees (1% to 3% if you use your debit card abroad). Read the fee schedule before you open the account—it is usually available on the bank's website or you can ask for it in person.
How to fund your account after opening
Once your account is open, you can deposit money in several ways. The fastest is to transfer money from another bank account using your new account number and routing number—this usually takes 1 to 3 business days. You can also deposit cash at an ATM or branch, which is immediate.
If you are moving money from another bank, you can request an ACH transfer (Automated Clearing House), which is free and takes 1 to 3 business days. You can also request a wire transfer, which is faster (same day or next day) but costs $15 to $30.
If your employer offers direct deposit, you can have your paycheck deposited automatically. This usually takes one or two pay periods to set up. Ask your employer's payroll department for the form, or provide them with your new account number and routing number.
What to do after your account opens
Set up online banking immediately. Log in to your bank's website or app and change your temporary password to something only you know. Enable two-factor authentication if the bank offers it—this adds a security layer by requiring a code from your phone when you log in from a new device.
Review your account settings and turn on alerts. Most banks let you set up notifications for low balances, large transactions, or failed login attempts. These alerts help you catch fraud or mistakes early.
If you receive checks, write them carefully. Include the date, the recipient's name, the amount in numbers and words, your signature, and a memo line (optional). Never sign a blank check. If you make a mistake, write "VOID" across the check and keep it.
Keep your debit card safe. If it is lost or stolen, call your bank immediately. You are not responsible for fraudulent charges if you report the loss within two business days, though you may be liable for some charges if you wait longer. Your bank will issue a replacement card within 7 to 10 business days.
Frequently Asked Questions
Can I open a bank account online if I do not have a physical address?
Most online banks require a U.S. mailing address, even if you are homeless or living in temporary housing. Use a shelter address, a friend's address, or a mail forwarding service. Call the bank to ask whether they accept alternative addresses before you apply.
How long does it take to open an account?
Online applications usually complete in 10 to 15 minutes and are active the same day. In-person applications take 20 to 30 minutes and are active immediately. Phone applications take 20 to 30 minutes and are active within one business day.
Do I need a minimum deposit to open an account?
It depends on the bank and account type. Some banks require $25 to $100; others have no minimum. Many waive the minimum if you set up direct deposit. Check the bank's website or call to confirm before you apply.
What if I am declined when I apply?
Ask the bank why you were declined. If it is ChexSystems, order your report at www.chexsystems.com and dispute any errors. If it is a different reason, try a second-chance banking account or a credit union, which may have different policies.
Can I have multiple accounts at the same bank?
Yes. You can open a checking account and a savings account at the same bank. However, opening and closing multiple accounts in a short time can trigger ChexSystems flags, so space them out if you can.