What you need to bring and where to go
You can open a bank account at a brick-and-mortar bank, a credit union, or an online bank. Each has different requirements, but all of them need proof of identity and proof of address. Bring a government-issued ID—a driver's license, passport, or state ID card—and a recent document showing your current address, like a utility bill, lease, or bank statement from another account.
If you don't have a permanent address, some banks will accept a letter from a shelter, a PO box, or mail sent to a friend's address where you receive correspondence. Call ahead and ask; policies vary by institution. Online banks often have the most flexible address requirements because they don't need you to visit a branch.
You'll also need to provide a Social Security number or an Individual Taxpayer Identification Number (ITIN). If you don't have either, some credit unions and a few online banks will open accounts using alternative verification, but this is less common. Ask the bank directly whether they can work with you before you make a trip.
Key Takeaways
- Bring a government-issued ID and a document showing your current address; these are required by federal law at every bank.
- Online banks typically have faster account opening (minutes to hours) and lower minimum balances than branches, but you cannot deposit cash in person.
- Credit unions often have lower fees and more flexible requirements for people without credit history or a permanent address.
- The bank will run a ChexSystems check to see if you have unpaid overdrafts or fraud history at other banks; this can delay or block your account.
- You can open an account in person, by phone, or online depending on the bank, and most accounts are ready to use within one business day.
The difference between banks, credit unions, and online banks
Traditional banks are the most common option. You walk into a branch, speak to a representative, and open an account on the spot. They offer checking and savings accounts, debit cards, and access to ATMs nationwide. The downside: many have monthly maintenance fees (ranging from $5 to $15), minimum balance requirements (often $100 to $500), and slower customer service if something goes wrong.
Credit unions are member-owned cooperatives that often have lower fees and more lenient lending practices. They typically don't charge monthly maintenance fees, have lower minimum balances, and are more willing to work with people who have no credit history or a recent banking problem. The catch is that you must be a member to open an account, which usually means living or working in a specific area, belonging to a certain employer, or being related to an existing member. You can search for credit unions near you at CO-OP.org or Alliant Credit Union's shared branch locator.
Online banks have no physical branches, so you open an account entirely through a website or app. They typically charge no monthly fees, have no minimum balance, and offer competitive interest rates on savings. However, you cannot deposit cash in person—you'll need to transfer money from another account or use mobile check deposit. Online banks are fastest if you already have another bank account to fund the new one.
What happens during the account opening process
At a branch, the process takes 15 to 30 minutes. The representative will ask for your ID and address proof, verify your Social Security number, ask questions about your employment and income (this is standard anti-money-laundering procedure), and explain the account terms. They'll run a ChexSystems check—a database that tracks overdrafts, fraud, and unpaid fees at other banks. If you have a history of bounced checks or unpaid overdraft fees, the bank may deny you or require you to pay those debts first.
By phone or online, the process is faster—usually 10 to 20 minutes. You'll upload photos of your ID and address proof, answer the same income and employment questions, and agree to the terms electronically. Some online banks approve you instantly; others take one business day to verify your documents.
Once approved, you'll receive a debit card in the mail within 5 to 10 business days. Most banks let you use your account immediately—you can transfer money in, set up direct deposit, and pay bills online before the card arrives. Some online banks issue a temporary card number you can use right away.
ChexSystems checks and what can block your account
ChexSystems is a consumer reporting agency that banks use to check your banking history. When you apply, the bank queries ChexSystems to see whether you have unpaid overdraft fees, a history of bounced checks, fraud, or other banking problems at other institutions. A negative ChexSystems record can result in denial.
Common reasons for denial: unpaid overdraft fees from a previous account (even small amounts, like $25), multiple returned checks, suspected fraud, or a pattern of overdrafts. If you're denied, the bank must tell you why and provide you with ChexSystems' contact information. You can dispute inaccurate information or request that old items be removed—ChexSystems keeps records for five years, but older items may be deleted sooner if you request it.
If you have a ChexSystems problem, some banks offer "second chance" checking accounts designed for people with banking history issues. These accounts often have higher fees and lower limits, but they're a way back in. Credit unions are also more likely to overlook ChexSystems issues if you can explain what happened.
Funding your new account
Once your account is open, you need to put money in. At a branch bank, you can deposit cash or a check immediately. At an online bank, you'll transfer money from another account you own—the transfer usually takes 1 to 3 business days. Some online banks offer mobile check deposit, where you photograph a check and upload it through the app; the funds typically appear within 1 to 2 business days.
You can also set up direct deposit, where your employer or a government agency (like Social Security or unemployment) deposits money directly into your account. This is free and usually takes one pay cycle to set up. If you receive a tax refund, Social Security, or unemployment benefits, direct deposit is the fastest way to get that money into your account.
If you have no other bank account and cannot deposit cash at a branch, some online banks partner with retailers like Walmart or CVS to accept cash deposits for a fee (usually $3 to $5). Check the bank's website to see whether this option is available.
Choosing between checking and savings accounts
Most people open a checking account first. Checking accounts are designed for frequent transactions—you get a debit card, can write checks, set up bill pay, and make unlimited deposits and withdrawals. Savings accounts are designed to hold money and earn interest; they typically limit you to six withdrawals per month (though this rule is less strictly enforced now), and they pay interest on your balance.
Many banks let you open both at the same time. A common strategy is to use checking for daily spending and savings for an emergency fund or money you're setting aside for a goal. Some banks offer high-yield savings accounts that pay significantly more interest than traditional savings accounts—rates vary, but as of 2024 they range from 4% to 5% annually, compared to 0.01% at many traditional banks.
If you're opening an account primarily to receive direct deposit (like a paycheck or benefits), a basic checking account is usually sufficient. If you want to earn interest on money you're not spending, a savings account makes sense.
What to do if you're denied
If a bank denies you, ask why. The reason is usually ChexSystems, but it could also be that you couldn't verify your identity or address, or that you don't meet the bank's minimum requirements. Get the specific reason in writing.
If it's a ChexSystems issue, contact ChexSystems directly at 1-800-428-9623 or visit chexsystems.com to dispute the record or request removal of old items. If it's an identity or address issue, gather better documentation and try a different bank—some are more flexible than others.
If you're repeatedly denied, try a credit union in your area or a second-chance checking account. Some online banks are also more lenient. As a last resort, some communities have community development financial institutions (CDFIs) that open accounts for people traditional banks have turned down; search for one near you at cdfifund.org.
Frequently Asked Questions
Can I open a bank account without a Social Security number?
Most banks require a Social Security number or ITIN. Some credit unions and a few online banks will open accounts using an alternative ID number or passport, but this is uncommon. Call ahead and ask; don't assume you'll be turned down without checking.
How long does it take to open an account and start using it?
At a branch, you can use your account the same day. Online, approval usually takes a few minutes to one business day, and you can use the account immediately, though your debit card arrives in 5 to 10 business days. Transfers from another bank take 1 to 3 business days to appear.
Do I need a minimum balance to open an account?
Many traditional banks require a minimum opening deposit ($25 to $500) and a minimum balance to avoid monthly fees. Online banks and credit unions typically have no minimum. Check the bank's website or call before you go in.
What if I have a bad ChexSystems record from years ago?
ChexSystems records stay for five years, but you can dispute inaccurate information or request removal of paid items. Contact ChexSystems at 1-800-428-9623. In the meantime, look for a second-chance checking account or a credit union, which are more forgiving of old banking problems.
Can I open an account for someone else, like a child or elderly parent?
You can open a joint account with another adult if you both bring ID and are present. For a minor, a parent or guardian must open a custodial account, which gives the adult control until the child reaches a certain age (usually 18 or 21). For an elderly person, you'd need power of attorney or guardianship documents. Ask the bank what they require.