What you need to bring and the steps to open an account
Opening a savings account takes one visit to a bank branch or one online session, usually 15 to 30 minutes. You will need a government-issued ID (driver's license, passport, or state ID card), proof of your current address (a recent utility bill, lease, or bank statement), and your Social Security number. Some banks also ask for a phone number and email address.
The process is straightforward: you tell the bank employee or fill out an online form with your name, address, date of birth, and Social Security number. The bank runs a background check through ChexSystems, a banking history database, to see if you have had problems with past accounts. This check takes a few minutes. Then you choose how much money to deposit to open the account — this ranges from $0 to $500 depending on the bank — and you are done.
Your account opens the same day if you open it in person at a branch. Online accounts typically open within 24 hours, though some banks take up to three business days to verify your identity and activate your debit card.
Key Takeaways
- Bring a government ID, proof of your address, and your Social Security number to open an account in person, or have these ready if you open one online.
- The bank will run a ChexSystems check to review your banking history, which takes a few minutes and does not affect your credit score.
- Opening deposits range from $0 to $500 depending on the bank; some banks have no minimum at all.
- In-person accounts open the same day; online accounts usually open within 24 hours to three business days.
- You will receive a debit card, account number, and online login information either immediately (in person) or by mail within one to two weeks (online).
Differences between opening in person and opening online
Opening at a branch means you walk out with your debit card the same day, your account number written down, and immediate access to online banking. A bank employee can answer questions about fees, interest rates, and account features while you are there. If you have trouble with the process or your ID does not scan properly, the employee can fix it on the spot.
Opening online is faster if you are not near a branch and do not need your debit card right away. You upload photos of your ID and proof of address through the bank's website or app, and the bank verifies them automatically or by hand within 24 hours. Your account opens and you can transfer money in immediately, but your physical debit card arrives by mail in seven to 14 days. Some banks send a temporary digital card you can use right away in their app or with Apple Pay or Google Pay.
Online opening also means you cannot ask questions face-to-face, though most banks offer phone support or live chat during business hours. If the bank cannot verify your identity from your uploaded documents, they may ask you to come to a branch or call to complete the process by phone.
What information the bank will ask for
The bank will ask for your full legal name, date of birth, current address, phone number, email address, and Social Security number. They will also ask whether you are a U.S. citizen or permanent resident, because federal law requires banks to verify this. If you are not a U.S. citizen, you may still open an account, but the bank will ask for an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number, or in some cases both.
The bank will ask how you want to be contacted (phone, email, or mail) and whether you want paperless statements or paper statements mailed to you. They will also ask about your employment status and income, though this is optional and does not affect whether you can open the account — banks ask this for their own record-keeping and to comply with federal anti-money-laundering rules.
Do not be surprised if the bank asks whether you have had accounts closed by other banks or whether you have ever been denied an account. These questions help the bank understand your banking history. Answering honestly is important; lying on a bank form is a federal crime, though banks rarely pursue this for minor dishonesty on routine account opening.
Understanding ChexSystems and what happens if you are flagged
ChexSystems is a database that tracks banking problems like overdrafts you did not pay back, accounts closed for fraud, or repeated bounced checks. When you open a savings account, the bank checks this database to see if you appear in it. The check takes a few minutes and does not show up on your credit report or affect your credit score.
If you are in ChexSystems, the bank may still open your account, but some banks decline applicants with serious flags like fraud or unpaid overdrafts. If a bank declines you, they must tell you why and give you the ChexSystems contact information so you can dispute the information if it is wrong. You can also request a copy of your ChexSystems report for free once per year at www.chexsystems.com.
If you have been declined, you have options: some banks specialize in second-chance accounts for people with ChexSystems flags, though these accounts often have higher fees or lower interest rates. You can also wait — ChexSystems records typically stay for five years, and some banks will reconsider your application after two or three years if you have not had new problems.
Fees to watch for and how to avoid them
Most savings accounts charge a monthly maintenance fee ranging from $0 to $10, though many banks waive this fee if you keep a minimum balance (often $500 to $1,000) or set up direct deposit. Some banks charge no monthly fee at all. Ask the bank or check their fee schedule before you open the account.
Other common fees include overdraft fees (charged if you spend more than you have in the account), out-of-network ATM fees (charged if you withdraw cash from an ATM that is not owned by your bank), and inactivity fees (charged if you do not use the account for a long time, usually six months to a year). Some banks also charge a fee to close the account early, though this is less common.
To avoid fees, choose a bank with no monthly maintenance fee or one where you can easily meet the minimum balance requirement. Use your bank's ATM network or banks that reimburse out-of-network fees. Make at least one deposit or withdrawal every few months to avoid inactivity fees. Read the fee schedule before you open the account — it is usually on the bank's website or available from a bank employee.
Interest rates and how savings accounts earn money
A savings account earns interest, which means the bank pays you a small percentage of the money you keep in the account. The interest rate varies widely depending on the bank and the type of account. Traditional banks often pay 0.01% to 0.05% annual interest, while online banks typically pay 4% to 5% annual interest. The difference is real: on $10,000, a traditional bank might pay $1 to $5 per year, while an online bank might pay $400 to $500 per year.
Interest rates change over time based on what the Federal Reserve does with its own interest rates. When the Fed raises rates, banks usually raise the interest they pay on savings accounts. When the Fed lowers rates, banks lower what they pay. Check the current rate before you open an account, but understand that the rate you see today may be different in three months.
Interest is usually paid monthly or daily and added to your account balance. Some accounts compound interest, which means you earn interest on the interest you have already earned — this happens automatically and you do not have to do anything.
Moving money into your new account
Once your account is open, you can deposit money in several ways. If you opened the account in person at a branch, you can deposit cash or a check right there. If you opened online, you can transfer money from another bank account you own using your account number and routing number, deposit a check by taking a photo with your phone and uploading it through the bank's app, or visit a branch to deposit cash.
Transfers from another bank account usually take one to three business days. Mobile check deposits (photographing a check with your phone) typically clear within one to two business days. Cash deposits at a branch are available immediately. Some banks also let you set up direct deposit from your employer, which means your paycheck goes straight into your savings account automatically.
If you are moving money from another bank, you will need that bank's routing number and your account number there. Your new bank can walk you through this process, or you can do it yourself through online banking once your account is set up.
Frequently Asked Questions
Can I open a savings account without a Social Security number?
Yes, if you have an Individual Taxpayer Identification Number (ITIN) instead. Some banks accept an ITIN alone; others require both an ITIN and a passport or other government ID. Call the bank ahead of time to confirm they will open an account for you before you visit.
What if the bank declines my application?
The bank must tell you why and provide ChexSystems contact information so you can review your report. You can dispute incorrect information with ChexSystems. If the decline is because of ChexSystems, look for a second-chance bank account, which is designed for people with banking history problems, though fees may be higher.
How long does it take to access my money after I open an account?
If you open in person and deposit cash, your money is available immediately. If you transfer money from another bank, it takes one to three business days. If you deposit a check by phone, it takes one to two business days. Online account opening itself takes 24 hours to three business days, but you can usually transfer money in before your debit card arrives.
Do I need a minimum deposit to open a savings account?
It depends on the bank. Many banks require $0 to open; others require $25, $100, or $500. Check the bank's website or ask a bank employee what their minimum is. Some banks waive the minimum if you set up direct deposit.
Can I open a savings account if I have had banking problems before?
Yes, though some banks may decline you if ChexSystems shows serious problems like fraud or unpaid overdrafts. Second-chance banks specialize in opening accounts for people with banking history issues. You can also wait a few years — ChexSystems records typically stay for five years, and some banks will reconsider after two or three years of no new problems.