What you need to bring and where to go

Opening a bank account requires you to visit a bank or credit union in person, or complete an application online if the institution offers it. You will need a government-issued photo ID (a driver's license, passport, or state ID card), proof of your current address, and your Social Security number or Individual Taxpayer Identification Number (ITIN). Some banks also ask for a second form of ID or a utility bill dated within the last 60 days to confirm your address.

You can open an account at a traditional bank, an online-only bank, or a credit union. Traditional banks have physical branches where staff can walk you through the process in person. Online banks have no branches but often have lower fees and higher interest rates on savings accounts. Credit unions are member-owned institutions that sometimes have lower minimum balance requirements and may be more flexible with people who have had banking problems in the past.

The entire process usually takes 15 to 30 minutes in a branch, or 10 to 20 minutes online. You will choose the type of account (checking, savings, or both), set up a PIN for your debit card, and decide whether to fund the account immediately or leave it empty to start.

Key Takeaways

  • Bring a photo ID, proof of address, and your Social Security number or ITIN to open an account in person or online.
  • Banks, credit unions, and online institutions all offer checking and savings accounts, each with different fees, minimum balances, and features.
  • You can open most accounts in 15 to 30 minutes, and many banks let you start using your account the same day.
  • If you have been denied a bank account before, credit unions and second-chance banking programs may accept you when traditional banks will not.

What happens if you have been denied before

Banks check your history using ChexSystems, a reporting agency that tracks closed accounts, overdrafts, and fraud. If you were denied in the past, the reason is usually one of three things: unpaid overdraft fees, a pattern of overdrafts, or a closed account due to suspected fraud or illegal activity. You can request your ChexSystems report for free at chexsystems.com to see what is on file.

If the report contains errors, you can dispute them directly with ChexSystems. If the information is accurate, you have two main paths forward. First, try a credit union in your area—they often use ChexSystems but weigh it less heavily than banks do and may open an account for you anyway. Second, look for a second-chance banking program, which is a checking account specifically designed for people with banking history problems. These accounts usually have higher fees and lower spending limits, but they rebuild your banking record and can lead to a standard account after 6 to 12 months of good standing.

Checking accounts versus savings accounts

A checking account is for money you spend regularly. It comes with a debit card, online bill pay, and the ability to write checks. You can withdraw money as often as you want with no penalty. Most checking accounts pay little or no interest on your balance.

A savings account is for money you want to keep and grow. It pays interest on your balance, but you can only withdraw money a limited number of times per month (usually six times) before facing a fee. Savings accounts are meant to discourage frequent withdrawals so your money stays in the account longer.

Many people open both at the same institution. You can link them so money moves easily between the two, and you can set up automatic transfers to move money into savings on payday. Some banks offer a combined account that functions as both, though these are less common.

Fees and minimum balances to watch for

Banks charge fees for specific actions: overdrafting (spending more than you have), using an out-of-network ATM, falling below a minimum balance, or inactivity (not using the account for a set period). Overdraft fees range widely—some banks charge $25 to $35 per overdraft, while others charge nothing if you link a savings account or credit line to cover the shortfall. Monthly maintenance fees range from $0 to $15 depending on the bank and account type.

Minimum balance requirements vary. Some banks require $0 to open and maintain an account. Others require $100 to $500 to avoid a monthly fee. Online banks almost never charge monthly fees or require a minimum balance, which is why they are often the cheapest option if you do not need a physical branch.

Before you open an account, compare the fee schedule of at least two institutions. The bank with the lowest advertised interest rate is not always the cheapest—a bank with no monthly fee and no overdraft fee might cost you less overall than one with higher interest but frequent fees.

Setting up direct deposit and online access

Once your account is open, you can set up direct deposit so your paycheck goes straight into your account. You will need to give your employer your account number and routing number, both of which appear on the bottom left of any check you receive from the bank. Direct deposit usually takes one to two pay cycles to activate, so your first paycheck may still arrive by paper check or card.

You will also receive online and mobile banking access. Log in with a username and password (or biometric login on your phone) to check your balance, transfer money between accounts, pay bills, and deposit checks by taking a photo. Most banks let you set up bill pay for free, which means you can schedule payments to any business or person without writing a check or using a third-party service.

Your debit card arrives in the mail within 7 to 10 business days. You can use it to withdraw cash at ATMs, make purchases at stores, and pay bills online. If your card is lost or stolen, call the bank immediately—they will cancel it and send a replacement, usually within 5 to 7 business days.

Protecting your account from fraud and overdrafts

Your bank account is protected by federal law if someone uses your debit card or account number without permission. If you report the fraud within two business days, your liability is capped at $50. If you wait longer, your liability can go up to $500. If you wait more than 60 days after your statement arrives, you may lose all protection. Report fraud immediately by calling your bank's fraud line—do not email or use online chat for this.

To avoid overdrafts, turn on balance alerts so you receive a text or email when your balance drops below a set amount (usually $100 or $200). Many banks also offer overdraft protection, which links your checking account to a savings account or credit line and automatically transfers money if you would otherwise overdraft. This costs less than an overdraft fee—usually $0 to $10 per transfer—but you still pay something, so it is not free protection.

Moving money between banks

If you open an account at one bank and later want to move your money to another, you have two options. An ACH transfer (Automated Clearing House) is free and takes 1 to 3 business days. You provide your new bank with your old account number and routing number, and they pull the money over. A wire transfer is faster (usually same-day or next-day) but costs $15 to $30 and is usually used only for large amounts or urgent moves.

Before you close your old account, make sure all automatic payments and direct deposits have been switched to your new account. Check your old account for 30 days after the move to catch any stray transactions, then close it. Closing an account takes one phone call or a visit to a branch.

Frequently Asked Questions

Can I open a bank account without a Social Security number?

Yes, if you have an ITIN (Individual Taxpayer Identification Number) issued by the IRS. Some banks accept an ITIN in place of a Social Security number. Call ahead to confirm the bank you want to use accepts ITINs, because not all do.

What if I do not have a permanent address?

Some banks accept a shelter address, a PO box, or a care-of address as proof of residence. Call the bank before you go in and ask what they accept. Credit unions are sometimes more flexible with address requirements than traditional banks.

How long does it take to use my debit card after I open an account?

You can use your debit card number online immediately after opening the account if the bank provides it during signup. The physical card arrives in 7 to 10 business days. Some banks let you add your card to a digital wallet (Apple Pay, Google Pay) the same day so you can pay with your phone right away.

What happens if I do not use my account for a long time?

Banks may charge an inactivity fee if you do not make a deposit or withdrawal for 12 months or longer. The fee is usually $5 to $10 per month. Some banks close accounts after 2 to 3 years of inactivity without notice. Check your account at least once every six months to avoid this.

Can I open an account for someone else?

No, you must open an account in your own name with your own ID. A parent or guardian can open a custodial account for a minor child, which the child takes over when they reach age 18 or 21 depending on the bank. You cannot open an account for an adult who is not present.