What you need before you walk in

To open a bank account, you need a government-issued photo ID, proof of your current address, and your Social Security number or Individual Taxpayer Identification Number (ITIN). Most banks also ask for an initial deposit, though the amount varies—some require $25, others $100 or more, and a growing number have no minimum.

Proof of address can be a utility bill, lease, mortgage statement, or government mail dated within the last 60 days. If you don't have a current address, some banks accept a letter from a shelter, transitional housing program, or social services agency. Call ahead to ask what your specific branch accepts; policies differ between institutions and sometimes between branches of the same bank.

If you don't have a Social Security number, an ITIN works for most banks. You'll need to apply for an ITIN through the IRS if you don't have one—that's a separate process that takes several weeks. Some credit unions and community banks are more flexible with documentation than large national banks, so if you're missing something, ask around before you assume you can't open an account.

Key Takeaways

  • You need a photo ID, proof of address, and a Social Security number or ITIN; most banks also require an opening deposit, though some have none.
  • Bring originals or certified copies of documents—banks will not accept photos or digital copies for initial verification.
  • The account opens on the spot in most cases, and you can use your debit card within one to two business days.
  • Online banks have lower minimums and fewer fees but no physical branch if you need to deposit cash or speak to someone in person.
  • If you have a history of overdrafts or fraud, some banks will deny you; ChexSystems reports your banking history to other institutions.

Choosing between a branch bank and an online bank

A branch bank has physical locations where you can deposit cash, withdraw money, and talk to someone face-to-face. The trade-off is higher monthly fees (often $10 to $15) and lower interest on savings. Large national banks like Chase, Bank of America, and Wells Fargo fall into this category, as do regional banks and credit unions.

An online bank has no branches but typically charges no monthly fee and pays higher interest on savings accounts. You deposit checks by photographing them with your phone and withdraw cash at ATMs or partner networks. Online banks like Ally, Charles Schwab, and Marcus are faster to open and cheaper to maintain, but if you need to deposit large amounts of cash regularly or prefer in-person service, a branch bank may suit you better.

Credit unions are member-owned and often have lower fees and more flexible lending than banks. You join by opening an account, and membership usually comes with access to a shared branching network—meaning you can use ATMs and services at other credit unions nationwide. If you work for a large employer, belong to a union, or live in a specific area, you may be may be able to access for a credit union that suits your needs.

The step-by-step process

Step 1: Gather your documents. Bring your photo ID, proof of address, and Social Security number or ITIN. If you're opening an account online, you'll upload images of these documents or answer security questions to verify your identity. If you're opening in person, bring the originals.

Step 2: Choose your account type. Most banks offer a checking account, a savings account, or both. A checking account is for regular deposits and withdrawals; a savings account earns interest but limits how many withdrawals you can make per month (usually six). Many people open both at the same time. Ask about monthly fees, minimum balance requirements, and overdraft policies before you commit.

Step 3: Make your opening deposit. This can be cash, a check, or a transfer from another bank account. If you're opening online, you'll usually link an existing bank account and transfer money electronically. The deposit clears within one to three business days.

Step 4: Set up online access. You'll create a username and password to check your balance, transfer money, and pay bills online. Most banks also offer a mobile app. Set this up before you leave the branch or immediately after opening online, so you can monitor your account.

Step 5: Order your debit card. If you're opening in person, you may receive a debit card on the spot or it will arrive by mail within five to seven business days. Online banks mail debit cards, which typically arrive within one to two weeks. Until your card arrives, you can withdraw cash at ATMs using your account number and PIN.

What happens if you're denied

Banks check your history through ChexSystems, a reporting agency that tracks overdrafts, fraud, and closed accounts. If you've had multiple overdrafts, written bad checks, or been flagged for fraud at another bank, you may be denied. You have the right to see your ChexSystems report for free—request it at chexsystems.com or by calling 1-800-428-9623.

If you're denied, ask the bank why. If it's a ChexSystems issue, you can dispute inaccurate information directly with ChexSystems. If it's because you don't have an ID or proof of address, work on getting those documents. Some banks have second-chance accounts designed for people with banking history problems; these come with higher fees but no ChexSystems check. Credit unions are sometimes more lenient than national banks.

If you've been denied by multiple banks, a prepaid card or a secured savings account at a credit union may be your next step. These don't require a credit check and can help you rebuild trust with the banking system.

Fees and features to compare

Monthly maintenance fees range from $0 to $15 depending on the bank and account type. Some banks waive the fee if you maintain a minimum balance (often $500 to $1,500) or set up direct deposit. Overdraft fees—charged when you spend more than you have—typically run $25 to $35 per transaction. Some banks cap overdraft fees at one or two per day; others charge for each overdraft separately.

ATM fees vary widely. National banks usually offer free withdrawals at their own ATMs but charge $2 to $3 at other banks' machines. Online banks partner with ATM networks (like Allpoint or MoneyPass) to offer free withdrawals at thousands of locations. If you travel or live far from a bank branch, check the ATM network before you open an account.

Interest rates on savings accounts change with the Federal Reserve rate. Online banks typically pay 4% to 5% annual percentage yield (APY) on savings, while branch banks pay closer to 0.01%. If you're saving money, this difference adds up over time. Checking accounts rarely earn interest, but some online banks offer small rates on checking balances.

After your account opens

Once your account is active, set up direct deposit if your employer or benefits provider offers it. Direct deposit is faster and more secure than paper checks—money lands in your account on payday without you having to visit a bank. You'll need to provide your employer with your account number and routing number, which you'll find on the bottom left of your first check or in your online banking portal.

Link your account to bill payment services so you can pay utilities, rent, and other bills electronically. Most banks offer free bill pay through their website or app. You can schedule payments in advance, which is useful if you want to pay on a specific date each month.

Monitor your account regularly—check your balance weekly and review your statement monthly. Report any unauthorized transactions to your bank within 60 days; federal law limits your liability to $50 if you report fraud promptly. Set up account alerts so you're notified of large withdrawals, low balances, or failed deposits.

Frequently Asked Questions

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

Yes, if you have an ITIN. You'll need to apply for an ITIN through the IRS, which takes several weeks. Some banks and credit unions also accept a passport or other government ID in place of a Social Security number, though this is less common. Call ahead to ask what your local branch accepts.

How long does it take to open an account?

In person, it takes 15 to 30 minutes. Online, it takes 10 to 15 minutes, though identity verification can take up to 24 hours. Your debit card arrives by mail within one to two weeks for online banks and five to seven days for branch banks, though some branches issue cards on the spot.

What if I don't have proof of address?

A letter from a shelter, transitional housing program, or social services agency usually works. Some banks accept a utility bill in someone else's name if you can show you live there. Call your bank and ask what alternatives they accept before you visit.

Do I need a minimum deposit to open an account?

Most online banks and some credit unions have no minimum. National banks typically require $25 to $100. If you don't have an opening deposit, ask about banks in your area that waive the requirement or accept smaller amounts.

What's the difference between a checking and savings account?

A checking account is for regular spending—you get a debit card and checks. A savings account earns interest but limits withdrawals to six per month. Many people use checking for bills and daily expenses and savings for money they want to keep separate and grow.