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 or ITIN (Individual Taxpayer Identification Number). Most banks will also ask for your phone number and email. That is the baseline. Some banks add extra steps depending on whether you are opening a checking account, savings account, or both.

The proof of address can be a utility bill, lease, mortgage statement, or government mail dated within the last 60 days. If you do not have one, some banks will accept a bank statement from another institution, a pay stub, or a tax return. Call ahead and ask what they accept—policies vary by bank and by branch.

If you do not have a photo ID, you can use a passport, state ID card, or driver's license. If you have none of these, some banks will work with you using alternative documents like a birth certificate plus a second form of ID without a photo. Again, call first. Do not show up without knowing whether the branch can help you.

Key Takeaways

  • You need a photo ID, proof of address, and your Social Security number or ITIN to open an account at most banks.
  • You can open an account in person at a branch, online through a bank's website, or by phone with some institutions.
  • Checking accounts let you write checks and use a debit card; savings accounts earn interest but limit how many withdrawals you can make per month.
  • Banks run a background check using ChexSystems or Early Warning Services, which can block you if you owe money to another bank or have a history of overdrafts you did not pay.
  • Once your account is open, you can deposit money by direct deposit, mobile check deposit, ATM, or in-person at a branch.

Choosing between in-person, online, and phone applications

Opening an account in person at a branch takes 15 to 30 minutes. You walk in with your documents, speak to a banker, and they run your information through their system on the spot. Your account is usually active the same day. This route works best if you want to ask questions, if you have an unusual situation, or if you do not have a computer or internet at home.

Opening online takes 5 to 10 minutes and can happen at any time of day. You enter your information on the bank's website, upload photos of your ID and proof of address, and answer security questions. Most online banks approve you within a few hours to a few days. You never speak to a person unless something does not match. This route is faster and works well if you are comfortable with technology and do not need to deposit cash immediately.

Some banks let you open an account by phone. You call a customer service number, provide your information verbally, and they mail you a debit card and checks. This takes longer—usually 5 to 10 business days—because you cannot upload documents in real time. Phone opening is rare now, but some credit unions and smaller regional banks still offer it.

Understanding checking versus savings accounts

A checking account is designed for money you use regularly. You get a debit card, checks, and online bill pay. You can withdraw money as many times as you want with no penalty. Most checking accounts do not earn interest, or earn so little that it rounds to zero. Many banks charge a monthly fee for checking, though some waive it if you keep a minimum balance or set up direct deposit.

A savings account is designed to hold money you are not spending right now. It earns interest—the bank pays you a small percentage of your balance each month. The catch: federal law limits you to six withdrawals per month (this rule was relaxed during the pandemic but many banks kept the limit). If you exceed the limit, the bank charges a fee or closes the account. Savings accounts almost never charge a monthly fee.

Most people open both at the same time. You use checking for bills and daily spending, and savings for an emergency fund or a goal you are saving toward. Some banks bundle them together; others let you open them separately. When you sit down to open an account, ask which type you want, or ask the banker to explain the difference if you are unsure.

What happens during the background check

When you submit your application, the bank runs your name and Social Security number through ChexSystems or Early Warning Services—two databases that track banking history. These systems record overdrafts you did not pay, accounts you closed with a negative balance, and fraud reports filed against you. If you appear in either database, the bank may deny your application or ask you questions before approving it.

You have the right to see what is in your ChexSystems or Early Warning Services report before you apply. You can request a free copy from ChexSystems at chexsystems.com or from Early Warning Services at earlywarning.com. If there is an error—for example, an overdraft from years ago that you actually paid—you can dispute it and ask for it to be removed. This process takes 30 days.

If you are denied because of your ChexSystems report, the bank must tell you that is the reason and give you the contact information for ChexSystems. You can then request your report and dispute anything that is wrong. If you are denied and want to try again, wait a few months and apply to a different bank—some banks have stricter policies than others.

Funding your account after it opens

Once your account is open, you need to put money in it. The easiest way is direct deposit—you give your employer or benefits administrator your account number and routing number, and they deposit your paycheck or benefits directly into your account. This is free and usually takes one to two business days.

If you do not have direct deposit, you can deposit cash or checks in person at a branch or ATM. Most banks let you deposit checks using your phone—you take a photo of the front and back of the check through the bank's app, and the money appears in your account within one to three business days. This is called mobile check deposit.

You can also transfer money from another bank account using an ACH transfer (Automated Clearing House). This is free and takes one to three business days. You will need the other account's routing number and account number. If you are moving money from another bank, ask that bank how to set up an outgoing transfer, or ask your new bank how to set up an incoming transfer.

Avoiding common mistakes when opening an account

Do not give your Social Security number to anyone who calls you claiming to be from a bank. Banks do not cold-call to open accounts. If someone calls you offering to open an account, hang up. This is a common scam.

Do not open an account at a bank you have never heard of without checking whether it is real. Scammers create fake bank websites that look almost identical to real ones. Type the bank's name directly into your browser instead of clicking a link in an email. If you are opening in person, make sure you are at an actual branch—check the bank's official website for the branch address.

Do not ignore your first statement. When your account opens, review the first statement to make sure there are no unauthorized charges or errors. If something is wrong, contact the bank within 60 days. After 60 days, the bank is not required to fix it.

Do not overdraw your account repeatedly. If you spend more than you have, the bank charges an overdraft fee—usually $25 to $35 per transaction. If you overdraft multiple times in a short period, the bank may close your account and report you to ChexSystems, making it harder to open an account elsewhere.

What to do if your application is denied

If a bank denies your application, ask why. They must tell you the reason. If it is because of your ChexSystems report, get a copy of that report and dispute any errors. If it is because you do not have an ID, ask what alternative documents they accept, or try a different bank with looser requirements.

Some banks specialize in second-chance banking—they accept people with ChexSystems records or no credit history. These banks often charge higher fees and offer fewer features, but they will open an account for you. Look for banks that advertise "second chance" or "no ChexSystems" accounts. Credit unions sometimes have looser policies than big banks, so try a local credit union if you are turned down by a national bank.

If you have no ID at all, some banks will work with you if you bring a birth certificate, a Social Security card, and a utility bill. A few will even open an account without a Social Security number if you have an ITIN. Call ahead and ask what they can do.

Frequently Asked Questions

How long does it take to open a bank account?

In person at a branch, 15 to 30 minutes and your account is active the same day. Online, 5 to 10 minutes to apply, but approval takes a few hours to a few days before you can use the account. By phone, 5 to 10 minutes to apply, but you wait 5 to 10 business days for your debit card and checks to arrive in the mail.

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

Yes, if you have an ITIN (Individual Taxpayer Identification Number). Some banks accept ITINs; others do not. Call ahead and ask. If a bank will not work with you, try a credit union or a bank that specializes in second-chance accounts.

What is the difference between a bank and a credit union?

A bank is a for-profit business owned by shareholders. A credit union is a nonprofit owned by its members. Credit unions often have lower fees and looser lending standards, but fewer branches and ATMs. Both are insured by the federal government up to $250,000 per account.

Do I need a minimum balance to keep my account open?

It depends on the bank and the account type. Some banks require a minimum balance—often $100 to $500—or they charge a monthly fee. Others have no minimum. Read the account terms before you open, or ask the banker what the minimum is.

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

If you do not make any deposits or withdrawals for a year or more, the bank may close your account and send any remaining balance to your state's unclaimed property program. To keep your account active, make at least one transaction every few months, or set up a small automatic transfer or bill payment.