What you need before you start

Most banks and credit unions will ask for a government-issued photo ID, your Social Security number, and proof of your current address. A driver's license or passport works for ID. For address proof, bring a recent utility bill, lease, or bank statement with your name and address on it. Some banks also ask for an initial deposit before they open the account—this ranges from zero dollars at some online banks to $25 or $100 at others.

If you don't have a Social Security number yet, you can still open an account at many banks and credit unions, but the process takes longer. You'll need an Individual Taxpayer Identification Number (ITIN) instead, which you get from the IRS. Some institutions won't open accounts for people without a Social Security number or ITIN, so call ahead to confirm.

Have your employment information handy if you plan to set up direct deposit—your employer's name and your pay schedule. You don't need this to open the account, but having it ready speeds things up if you want to link it right away.

Key Takeaways

  • Bring a photo ID, proof of address, and your Social Security number to open an account in person, or upload images of these documents online.
  • Initial deposit requirements vary from zero to $100 depending on the bank or credit union you choose.
  • Online banks typically have no minimum deposit and lower fees, while in-person banks let you speak to someone and deposit cash immediately.
  • The entire process takes 15 minutes in person or 10 minutes online, and your account is usually active the same day.
  • After opening, set up direct deposit or link another account so you can move money in without visiting a branch.

Opening an account in person at a bank or credit union

Walk into any branch during business hours with your ID, proof of address, and Social Security number. Tell the teller or banker you want to open a savings account. They'll hand you a form or pull one up on their computer. You'll fill in your name, address, date of birth, and Social Security number. This takes about five minutes.

The banker will explain the account's interest rate, monthly fees (if any), and minimum balance requirements. Ask about these before you sign—some accounts charge $5 to $10 per month if your balance drops below a certain amount. Once you sign, they'll give you a debit card or tell you when it will arrive by mail. Your account is active immediately, and you can deposit cash or a check right there.

If you don't have an initial deposit with you, most banks will still open the account. You can make your first deposit online or at an ATM within a few days.

Opening an account online

Go to the bank or credit union's website and click "Open an Account" or "Sign Up." You'll enter your name, address, date of birth, and Social Security number into a form. When prompted, upload a photo of your ID (front and back) and a photo of your proof of address. Most banks accept images taken on a phone camera. The whole process takes about 10 minutes.

After you submit, the bank reviews your documents—this usually takes a few hours to one business day. You'll get an email confirming your account is open. Your account number appears in that email or in your online banking portal. You can log in and transfer money from another account right away, or wait for your debit card to arrive by mail in 7 to 10 business days.

Online banks often have no minimum deposit requirement and lower monthly fees than brick-and-mortar banks. The trade-off is that you can't walk into a branch to deposit cash or speak to someone face-to-face. Most online banks let you deposit checks by taking a photo on your phone through their app.

Choosing between a bank and a credit union

Banks are for-profit companies. Credit unions are member-owned nonprofits. Both hold your money safely—both are insured by the federal government up to $250,000 per account. The practical differences are fees and interest rates.

Credit unions often charge lower fees and pay slightly higher interest on savings. However, credit unions have membership requirements—you might need to live in a certain area, work for a certain employer, or belong to a certain organization. Banks have no membership requirement; anyone can open an account. If you're not sure whether you're may be able to access for a credit union, call one in your area and ask.

Online banks (which are always banks, not credit unions) typically have the lowest fees and highest interest rates because they don't operate physical branches. The downside is you can't deposit cash in person. If you rarely use cash, an online bank often makes sense. If you need to deposit cash regularly, a local bank or credit union is more practical.

Setting up direct deposit and transfers

Once your account is open, you can move money into it without visiting a branch. The easiest way is direct deposit—your employer sends your paycheck straight to your account. Ask your employer's payroll department for the direct deposit form. You'll give them your bank's routing number and your account number. Both appear in your online banking portal or on a check you order from the bank.

If you don't have direct deposit yet, you can transfer money from another bank account you own. Log into your new savings account online, click "Transfer Money" or "Link Account," and enter the routing number and account number of your other bank. The transfer usually takes one to three business days. Some banks let you transfer money immediately if you use their mobile app.

You can also deposit checks by photographing them in your bank's mobile app, or by mailing a check to the bank's address. Mailed checks take 5 to 10 business days to clear.

What happens after your account opens

Your debit card arrives by mail within 7 to 14 business days. When it arrives, you'll need to activate it—most banks send instructions by text or email, or you can call the number on the back of the card. Once activated, you can use it to withdraw cash from ATMs or make purchases.

Log into your online banking account and set a password if you haven't already. Check your account settings to see the interest rate you're earning and any monthly fees. Some banks let you set up alerts so you get a text or email if your balance drops below a certain amount—this is useful if your account has a minimum balance requirement.

If you opened the account online and want to deposit cash later, find an ATM that belongs to your bank's network. Most banks have ATMs at their branches and at partner locations. Credit unions often share ATM networks, so you can use ATMs at other credit unions for free. Ask your bank which ATMs you can use without a fee.

Troubleshooting common problems

If your documents are rejected during online signup, the bank will email you explaining why—usually the photo was blurry or the document was expired. Take new photos in good lighting and resubmit. If your ID or address proof is too old, you'll need to get a new one before you can open the account.

If you're denied an account, it's usually because of a banking history issue. Banks use a system called ChexSystems to check whether you've had accounts closed for unpaid fees or fraud. If you were denied, the bank will tell you. You can request a copy of your ChexSystems report for free at www.chexsystems.com. If there's an error, you can dispute it. Some banks specialize in accounts for people with ChexSystems issues—ask your local credit union whether they offer "second chance" accounts.

If your account isn't active after one business day, call the bank's customer service number. Online banks usually have phone support available during business hours. In-person banks have phone lines that operate during branch hours.

Frequently Asked Questions

Do I need a minimum deposit to open a savings account?

It depends on the bank. Many online banks have no minimum deposit. In-person banks and credit unions often require $25 to $100 to open an account. Some waive the minimum if you set up direct deposit. Call or check the bank's website before you go in.

How long does it take to open an account?

In person, the process takes 15 to 20 minutes. Online, it takes about 10 minutes to fill out the form, and the bank reviews your documents within a few hours to one business day. Your account is usually active the same day you submit your information.

Can I open a savings account if I don't have a job?

Yes. Banks don't require employment to open a savings account. You'll still need a photo ID, proof of address, and your Social Security number. If you have no income, that's fine—the bank just needs to know who you are.

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

A savings account is meant for money you're setting aside and not spending regularly. It earns interest, but you can only withdraw a limited number of times per month. A checking account is for everyday spending—you can write checks and use a debit card as much as you want, but it earns little or no interest. Many people have both.

Is my money safe in a savings account?

Yes, as long as the bank or credit union is insured by the federal government. Banks are insured by the FDIC (Federal Deposit Insurance Corporation). Credit unions are insured by the NCUA (National Credit Union Administration). Both protect your money up to $250,000 per account. You can check whether a bank is insured at www.fdic.gov or www.ncua.gov.