The basic steps to open a savings account

Opening a savings account takes between 15 minutes and a few days, depending on whether you do it online or in person. You will need a government-issued ID, proof of your current address, and your Social Security number or tax ID. Most banks and credit unions let you start the process online, then either finish it immediately or visit a branch to complete it in person.

The account opens when the institution verifies your identity and runs a background check through ChexSystems or Early Warning Services — systems that track banking history and fraud. If you have no banking history or a history of overdrafts, some banks may still open your account, though a few may decline. Once approved, you can deposit money the same day, either online, by mail, or at a branch.

You will receive a debit card in the mail within 5 to 10 business days, though many banks now issue temporary digital cards you can use immediately. Your account number and routing number arrive by mail or email so you can set up direct deposit or transfers from another account.

Key Takeaways

  • You need a government ID, proof of address, and your Social Security number to open an account, whether online or in person.
  • Banks and credit unions run background checks that take a few minutes to a few hours, and most accounts open the same day.
  • You can deposit money immediately after opening, but your physical debit card arrives in 5 to 10 business days.
  • Online banks often have no minimum balance and lower or no monthly fees, while traditional banks may charge fees but offer in-person service.

What documents and information you need to bring

Have your government-issued ID ready — a driver's license, passport, state ID card, or military ID all work. The bank will scan or photograph it to verify your identity. You also need proof of your current address, which can be a utility bill, lease, mortgage statement, or bank statement dated within the last 60 days. A piece of mail from a government agency also works.

You will need your Social Security number or, if you do not have one, your Individual Taxpayer Identification Number (ITIN). The bank uses this to report interest earned and to check your banking history. If you are opening an account for a minor, you will need the child's Social Security number and your own ID and proof of address.

Some banks ask for a phone number and email address during the process. Have these ready so you do not have to look them up. If you are opening the account online, you may be able to upload photos of your documents instead of bringing originals.

Online accounts versus in-person accounts

Online banks let you open an account entirely on your computer or phone in 10 to 15 minutes. You upload photos of your ID and proof of address, answer security questions, and the account opens immediately or within a few hours. Online banks typically have no minimum balance, no monthly fees, and higher interest rates on savings. The trade-off is that you cannot deposit cash directly — you transfer money from another account or set up direct deposit.

In-person accounts at a traditional bank or credit union let you walk in, speak to a banker, and leave with a debit card the same day. You can deposit cash immediately. These institutions often charge monthly maintenance fees ($5 to $15) unless you maintain a minimum balance or set up direct deposit. Interest rates on savings are usually lower than online banks, but you have access to a physical branch and in-person customer service.

A middle option is to open online and then visit a branch to deposit cash or ask questions. Many banks let you do this without penalty. If you do not have internet access or prefer face-to-face help, an in-person account is the clearer choice. If you want to avoid fees and earn more interest, an online account usually costs less.

Banks versus credit unions

Banks are for-profit institutions regulated by the Federal Deposit Insurance Corporation (FDIC) or the Office of the Comptroller of the Currency (OCC). They are open to anyone and typically have more branches and ATMs. Banks often charge monthly fees, require minimum balances, and pay lower interest on savings. However, they offer more account types, investment services, and credit products in one place.

Credit unions are nonprofit institutions owned by their members. You must meet membership requirements — often living or working in a certain area, working for a specific employer, or belonging to a particular group. Credit unions usually charge no monthly fees, have no minimum balance requirements, and pay higher interest on savings. They also tend to approve accounts for people with poor or no banking history. The downside is fewer branches and ATMs, though most credit unions are part of shared branching networks that let you use other credit unions' services.

If you have had trouble with banks in the past or want to avoid fees, a credit union is often the better choice. If you need many branches or want to combine savings with investment accounts, a bank may serve you better. Both are insured up to $250,000 per account type by the NCUA (credit unions) or FDIC (banks).

What happens after you open the account

Once your account is open, you can start depositing money immediately. If you opened online, you can transfer money from another bank account or set up direct deposit from your employer. If you opened in person, you can deposit cash or checks at the branch. Transfers from another bank usually take 1 to 3 business days; direct deposit typically arrives on your pay date.

Your debit card arrives in the mail within 5 to 10 business days. Many banks now send a temporary digital card to your phone that you can use right away at stores and online. You will also receive your account number and routing number by mail or email — you need these to set up direct deposit or to have someone send you money via bank transfer.

Some banks require you to make your first deposit within a certain time frame (usually 30 to 60 days) to keep the account open. Check your welcome materials or account agreement for this requirement. Once money is in the account, you can leave it there to earn interest, or withdraw it anytime without penalty.

Common reasons accounts are declined or delayed

Banks may decline or delay your account if ChexSystems or Early Warning Services flags your banking history. This happens if you have unpaid overdrafts, a history of fraud, or accounts closed due to negative balances. You can request a copy of your ChexSystems report for free at chexsystems.com to see what the bank sees.

Some banks decline accounts for people with no Social Security number, though credit unions and some online banks will open accounts with an ITIN instead. If you have an ITIN, call ahead to confirm the bank accepts it before you apply.

If your account is declined, you have options. Many credit unions and online banks have fewer restrictions and may open an account for you. You can also look for a second-chance banking account, which is designed for people with banking problems — these accounts have higher fees but are easier to open. Once you have had a clean account for 6 to 12 months, you can move to a standard account with lower fees.

Frequently Asked Questions

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

Most online banks and credit unions have no minimum balance. Traditional banks often require $25 to $500 to open, though many waive this if you set up direct deposit. Check the bank's website or call before you visit — the requirement varies by institution and by account type.

Can I open an account if I do not have a Social Security number?

Yes, if you have an Individual Taxpayer Identification Number (ITIN). Some banks accept ITINs, but not all — credit unions are more likely to. Call ahead to confirm. You will still need a government ID and proof of address.

How much money do I need to deposit when I open the account?

You can open most accounts with $0 and deposit money later. Some banks require a small opening deposit ($1 to $25), but many do not. Once the account is open, you can deposit as much or as little as you want, whenever you want.

What if I want to close the account later?

You can close a savings account anytime by visiting a branch, calling the bank, or using the online banking portal. Withdraw any remaining money first, or ask the bank to transfer it to another account. There is no penalty for closing, though some banks charge a fee if you close within a certain time frame (usually 90 to 180 days). Check your account agreement.

Is my money safe in a savings account?

Yes. Banks are insured by the FDIC and credit unions by the NCUA, both of which protect up to $250,000 per account type per person. This means if the bank fails, your money is protected. Savings accounts are one of the safest places to keep money.