What you need to open an account
You need a government-issued photo ID, proof of your current address, and your Social Security number or ITIN. Most banks also want to see a second form of ID or a utility bill dated within the last 60 days. Bring these documents with you to the bank branch, or upload them online if you are opening an account remotely.
Some banks will open an account with just an ID and Social Security number if you are opening online. Others require you to visit a branch in person. Call the bank ahead of time to ask what they need from you specifically — requirements vary by institution and by account type.
If you do not have a Social Security number, you can use an ITIN (Individual Taxpayer Identification Number) issued by the IRS. If you do not have either, some banks and credit unions will still open an account, but you will need to ask directly because policies differ widely.
Key Takeaways
- You will need a government photo ID, proof of address, and your Social Security number or ITIN to open most bank accounts.
- Online accounts often open faster than in-person accounts and may require fewer documents, but you still need to verify your identity.
- Credit unions and smaller banks sometimes have different requirements than large national banks, so call ahead to confirm what you need.
- Once your account is open, you can deposit money by direct deposit, ATM, mobile app, or in person at a branch.
- Your bank will send you a debit card and checks within one to two weeks; you can use your account number to receive deposits before they arrive.
Opening an account online versus in person
Online accounts are faster and require fewer trips. You upload photos of your ID and proof of address, answer security questions, and the bank verifies your identity electronically. Most online accounts open within 24 hours. You can start using the account number for direct deposits or transfers immediately, even before your debit card arrives.
In-person accounts take longer but give you a chance to ask questions and understand the account features before you commit. A banker can walk you through the account options, explain fees, and help you set up online banking on the spot. If you have a complicated financial situation or need to discuss overdraft protection or savings goals, in-person is often clearer.
Some banks require you to open in person if you have no banking history or if you are opening a business account. Others let you open online and verify your identity later in a branch. Ask the bank whether you can start using the account while you wait for your physical debit card to arrive.
What happens after you open the account
The bank will issue you a debit card and a checkbook. These usually arrive within one to two weeks. While you wait, you can use your account number and routing number to receive direct deposits from your employer or government benefits. You can also transfer money in from another account using your bank's mobile app or website.
Your bank will send you a welcome packet with your account number, routing number, and instructions for setting up online banking and mobile banking. Write down your account number and routing number and keep them somewhere safe — you will need them to set up direct deposit or to receive wire transfers.
The bank will also explain their overdraft policy. Some banks charge a fee if you spend more money than you have in your account; others decline the transaction instead. Read this carefully, because overdraft fees can add up quickly if you are not paying attention.
Choosing between a checking account and a savings account
A checking account is for money you spend regularly. You get a debit card and checks, and you can make unlimited deposits and withdrawals. Most checking accounts have no monthly fee, though some charge a fee if you do not keep a minimum balance or if you do not set up direct deposit.
A savings account is for money you want to keep and grow. You earn interest on the money in the account, though the interest rate is usually very low. Banks limit how many times per month you can withdraw money from a savings account — usually six times. Savings accounts are good for emergency funds or money you are saving toward a goal.
Many people open both: a checking account for daily spending and a savings account for emergencies. Some banks offer a package deal that combines both. Ask whether the bank charges a monthly fee for each account or whether you can waive the fee by keeping a minimum balance or setting up direct deposit.
Understanding fees and minimum balances
Most banks charge a monthly maintenance fee unless you meet certain conditions. Common ways to waive the fee are setting up direct deposit, keeping a minimum balance (often $500 to $1,500), or maintaining a certain number of debit card transactions per month. Ask the bank what the fee is and how to avoid it before you open the account.
Other fees to watch for include overdraft fees (charged when you spend more than you have), ATM fees (charged when you use an ATM that is not owned by your bank), and wire transfer fees. Some banks charge a fee to close your account early. Read the fee schedule the bank gives you and ask questions about any fee you do not understand.
Online banks and credit unions often have lower fees than large national banks. If you are opening your first account and want to avoid fees, compare a few options before you decide. The bank's website usually lists all fees clearly, or you can call and ask.
Setting up direct deposit and online banking
Direct deposit is the fastest way to get paid. Your employer or benefits program sends money straight to your bank account instead of issuing a check. To set up direct deposit, give your employer or benefits program your account number and routing number. The bank will provide both of these in your welcome packet.
Online banking lets you check your balance, transfer money between accounts, pay bills, and deposit checks using your phone camera. Most banks offer this for free. You create a username and password, and then you can log in from any device. Set up a strong password and do not share it with anyone.
Mobile banking is similar to online banking but designed for your phone. You download the bank's app, log in with your username and password, and can do most of the same things. Many banks let you deposit a check by taking a photo of the front and back with your phone.
What to do if the bank denies your application
Banks sometimes deny account applications because of a history of overdrafts, unpaid fees, or fraud at another bank. If a bank denies you, ask why. The bank is required to tell you the reason. Common reasons include a report from ChexSystems (a banking history database) or a report from Early Warning Services (another banking database).
You can request a copy of your ChexSystems report for free at www.chexsystems.com. If there is an error on your report, you can dispute it. If the report is accurate but old, some banks will still open an account for you after a certain amount of time has passed — usually one to five years depending on the bank.
If you are denied by a large bank, try a credit union or a smaller community bank. They sometimes have different policies and may be willing to open an account for you. Some banks also offer second-chance accounts designed for people who have been denied elsewhere.
Frequently Asked Questions
Can I open a bank account without a Social Security number?
Yes, if you have an ITIN issued by the IRS. Some banks will also open an account without either if you have a passport or other government ID and can prove your address. Call ahead to ask, because policies vary by bank and change over time.
How long does it take to open an account online?
Most online accounts open within 24 hours. You can start using your account number for direct deposits or transfers immediately. Your debit card and checks arrive by mail within one to two weeks.
What is the difference between a bank and a credit union?
Banks are for-profit companies owned by shareholders. Credit unions are nonprofit organizations owned by their members. Credit unions often have lower fees and higher interest rates on savings, but they may have fewer branches and ATMs. Both are insured by the federal government up to $250,000 per account.
Do I need to keep a minimum balance in my account?
It depends on the bank and the account type. Some accounts require a minimum balance to waive the monthly fee; others do not. Check the fee schedule before you open the account, or ask the banker to explain the minimum balance requirement.
Can I open an account if I have been denied before?
Yes. If you were denied because of errors on your ChexSystems report, dispute the errors. If you were denied because of past overdrafts or unpaid fees, wait a year or two and try again, or look for a second-chance account at a credit union or community bank.