What you need to open a new savings account

You will need a government-issued photo ID, proof of your current address, and your Social Security number. Most banks and credit unions ask for these three things before they open an account. Bring a physical ID — a driver's license, passport, or state ID card — because banks verify it in person or through their system before the account goes live.

Proof of address can be a recent utility bill, lease, mortgage statement, or bank statement with your name and address on it. The document usually needs to be dated within the last 60 days, though this varies by institution. If you do not have a recent bill in your name, some banks will accept a government letter addressed to you, a property tax statement, or a voter registration card.

You will also need to decide how much money to deposit to open the account. Some banks require a minimum opening deposit — often $25 to $100 — while others let you open with zero dollars. Online banks and credit unions tend to have lower or no minimums. If you are opening the account to receive a refund or payment, you do not need to deposit anything upfront; the incoming transfer will fund the account.

Key Takeaways

  • Bring a photo ID, proof of your address dated within the last 60 days, and your Social Security number to open an account in person.
  • Online banks often have no minimum opening deposit, while brick-and-mortar banks may require $25 to $100.
  • You can open an account online or by phone with most banks and credit unions, though some still require an in-person visit.
  • Once the account is open, you will receive a routing number and account number to give to employers, government agencies, or other payers sending you money.
  • Separate savings accounts can help you set aside money for a specific purpose and keep it from being mixed with spending money.

Opening an account in person versus online

Opening in person at a bank branch takes about 15 to 30 minutes. You hand over your documents, the teller verifies them, and you sign paperwork. You walk out with a debit card or a temporary card number, and the account is usually active the same day. This route works well if you want to ask questions face-to-face or if your bank requires it.

Opening online takes 10 to 15 minutes and can happen at any time of day. You upload photos of your ID and proof of address, enter your Social Security number, and choose your account settings. Most online applications are approved within a few hours to one business day. You will receive your account number and routing number by email or in your online banking portal, often before a physical debit card arrives in the mail.

Some banks and credit unions let you open by phone with a representative. This is useful if you have questions but cannot visit a branch. The representative will verify your identity over the phone, take your information, and mail you a debit card. Phone applications usually take one to two business days to process.

Getting your routing and account numbers

Once your account is open, you will receive two numbers: a routing number and an account number. The routing number identifies your bank or credit union — it is the same for all customers at that institution. Your account number is unique to your account. Together, they tell any payer (an employer, the IRS, an insurance company) exactly where to send your money.

You can find both numbers in your online banking portal, on your debit card, or by calling your bank's customer service line. If you are receiving a tax refund or government payment, you will enter these numbers on a form or in an online portal. Write them down and keep them somewhere safe — you will use them repeatedly if you are setting up direct deposit or receiving regular payments.

Some banks print the routing and account numbers on the bottom left of checks, if you order them. If you do not have checks or do not want to order them, your bank's website or app will always show you both numbers.

Choosing between a bank and a credit union

Banks and credit unions both offer savings accounts, but they work differently. Banks are for-profit institutions owned by shareholders. Credit unions are member-owned nonprofits, and you become a member when you open an account. Credit unions often charge lower fees and pay higher interest on savings, but they may have fewer branches and ATMs.

Banks have more locations and ATMs, making it easier to deposit cash or withdraw money in person. They also tend to have more online features and mobile apps. However, they may charge monthly maintenance fees, overdraft fees, or require a higher minimum balance.

For a separate savings account meant to hold money from a refund or payment, a credit union or online bank often makes sense because they charge fewer fees and you do not need frequent in-person access. If you want to deposit cash regularly or need a branch nearby, a traditional bank may be more convenient despite higher fees.

Setting up the account to receive refunds or payments

Once your account is open, you can use it to receive tax refunds, insurance refunds, government payments, or business refunds. When you file a tax return or submit a refund request, you will enter your routing number and account number in the direct deposit section. The payer will send the money electronically, and it usually arrives within one to three business days after the payment is processed.

If you are receiving a refund check instead of direct deposit, you can deposit it at an ATM, through mobile check deposit (if your bank offers it), or at a branch. Mobile check deposit lets you photograph the front and back of the check and submit it through your bank's app — the money usually clears within one to two business days.

Keep your account separate from your main checking account so the refund money stays set aside. Do not link it to a debit card you use for everyday spending, or the money will get mixed in with your regular expenses. Some banks let you set a nickname for the account (like "Tax Refund" or "Insurance Payout") to help you remember its purpose.

Avoiding common mistakes when opening a new account

Do not give your Social Security number to anyone who calls you claiming to be from a bank. Banks never call to ask for your SSN — they already have it. If someone calls asking for it, hang up and call your bank directly using the number on your statement or their official website.

Do not open an account at a bank that charges high monthly fees if you plan to keep a low balance. Read the fee schedule before you sign up. Look for accounts with no monthly maintenance fee, no minimum balance requirement, and no fee for receiving direct deposits.

Do not assume your old account is closed just because you opened a new one. You must close the old account separately, or you may be charged fees on an account you are not using. Contact your old bank and ask them to close it, or do it through their online portal if available.

Do not deposit large amounts of cash all at once if you are trying to keep a low profile. Banks report cash deposits over $10,000 to the federal government — this is normal and legal, but it can trigger extra questions. If you are depositing a large refund, it will be by direct deposit anyway, so this is not a concern for refund money.

What happens after your account is open

Your account will be active and ready to receive money within one business day of opening. You can start giving your routing and account numbers to payers immediately. If you are waiting for a refund, you can enter these numbers on your tax return, refund request, or direct deposit form as soon as the account exists.

Your bank will send you a welcome packet in the mail with your debit card, temporary checks (if you ordered them), and account information. Your debit card usually arrives within 7 to 10 business days. Until it arrives, you can still access your account online and receive direct deposits — you just cannot withdraw cash at an ATM or store.

Set up online banking and mobile alerts so you can monitor the account. Most banks let you set up a low-balance alert, so you get a notification if the account drops below a certain amount. This helps you catch fraud or unexpected fees early.

Frequently Asked Questions

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

Most banks require a Social Security number or an Individual Taxpayer Identification Number (ITIN) to open an account. Some credit unions and banks that work with immigrant communities may have alternatives, but they are rare. Call your local credit union or bank to ask if they have options for people without an SSN.

How long does it take to receive a debit card after opening an account?

A physical debit card usually arrives within 7 to 10 business days. Online banks sometimes take longer — up to two weeks. You can use your account and receive direct deposits before the card arrives; you just cannot withdraw cash at an ATM or make purchases in stores until it comes.

Do I need a separate account for each refund I receive?

No. One savings account can receive multiple refunds. You can use the same account for a tax refund, an insurance refund, and a business refund. Keeping one separate account helps you track the money and prevents it from mixing with your regular spending.

What if I enter the wrong routing or account number when filing for a refund?

The refund will be sent to the wrong account or rejected. Contact the payer (the IRS, your insurance company, or whoever is sending the refund) and ask them to correct the routing and account numbers. They can usually update it if the refund has not been processed yet. If it has already been sent, the receiving bank will reject it and send it back, which can delay your refund by several weeks.

Can I close the account after the refund arrives?

Yes. Once the money is in the account, you can transfer it to another account or withdraw it, then close the account. Call your bank or use their online portal to close it. Make sure the account balance is zero before closing, or the bank may charge a fee or hold the remaining money.