What you need to open a savings account
Most banks and credit unions will ask for two things: a government-issued ID 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 — dated within the last 60 days in most cases.
You will also need to bring money to deposit. The opening deposit amount varies by institution — some have no minimum, others require $25 to $100 to start. A few banks waive the opening deposit if you set up direct deposit from your employer or another regular income source.
Have your Social Security number ready. The bank uses it to run a background check through ChexSystems, a banking history database. This check does not affect your credit score. If you have been flagged in ChexSystems for unpaid overdrafts or fraud at another bank, some institutions will deny you, but others specialize in second-chance accounts.
Key Takeaways
- You need a government ID, proof of address dated within 60 days, and your Social Security number to open an account at most banks and credit unions.
- Opening deposits range from zero to $100 depending on the bank, and some waive the deposit if you set up direct deposit.
- Banks check ChexSystems, a banking history database, but this check does not affect your credit score.
- If you have been denied before, credit unions and second-chance banking programs often have lower barriers than large national banks.
- You can open an account in person, online, or by phone, depending on the bank — online is usually fastest.
Opening in person versus online
Opening in person at a branch takes 15 to 30 minutes. A banker will verify your ID and address, take your opening deposit, and set up your account on the spot. You walk out with a debit card order and online login information. This route works well if you have questions or prefer to hand over documents in person.
Opening online takes 5 to 10 minutes and can be done from home. You upload photos of your ID and address proof, enter your information, and fund the account by linking a checking account or debit card. Some banks mail a debit card within 5 to 7 business days; others issue a temporary digital card you can use immediately. Online opening is faster, but you cannot ask questions in real time.
Phone opening is less common but available at some banks and most credit unions. Call the number on their website, and a representative will walk you through the process. You will still need to upload or mail documents, so it takes longer than online but may feel more personal than a website.
What happens after you open the account
Once your account is open, you receive online banking access immediately or within one business day. Log in to see your balance, set up transfers, and arrange automatic deposits. Your debit card arrives by mail in 5 to 10 business days unless the bank issued a digital card first.
Many banks offer a welcome bonus for new savings accounts — typically $50 to $200 if you meet conditions like maintaining a minimum balance or making a certain number of deposits within 90 days. Read the terms carefully, because some bonuses require you to keep money in the account for a set period or you forfeit the bonus.
You can begin depositing money right away through direct deposit, mobile check deposit (taking a photo of a check through the app), or transfers from another account. Some banks limit the number of transfers you can make from a savings account per month — federal rules previously capped this at six, but that rule was suspended. Check your bank's current policy.
Choosing between a bank and a credit union
Banks are for-profit institutions. They typically have more branches and ATMs, online tools are often more polished, and they may offer higher interest rates on savings to attract deposits. Large national banks like Chase, Bank of America, and Wells Fargo have the most locations but sometimes charge monthly fees or require higher minimum balances.
Credit unions are member-owned nonprofits. They usually have lower or no monthly fees, are more likely to waive opening deposits, and often approve accounts for people who have been denied by banks. The trade-off is fewer physical locations and ATMs, though most credit unions participate in shared branching networks that let you use other credit unions' ATMs for free. Credit unions also tend to offer lower interest rates on savings than some online banks.
Online-only banks have no physical branches but offer the highest interest rates on savings accounts and the lowest fees. They work well if you are comfortable managing money through an app and do not need to deposit cash or speak to someone in person. Opening is entirely online and takes minutes.
If you have been denied before
If ChexSystems shows unpaid overdrafts, fraud, or other banking problems, you may be denied by mainstream banks. Second-chance banking programs exist specifically for this situation. These accounts have higher fees and lower interest rates, but they let you rebuild your banking history.
Credit unions are often more forgiving than banks and may open an account even with ChexSystems issues. Call ahead and ask whether they work with people who have been flagged in ChexSystems. Some credit unions specialize in this and will not turn you down for past banking problems.
You can also request your ChexSystems report for free at chexsystems.com to see what is actually on file. If information is wrong, you can dispute it. Accurate negative information stays on your report for five years, but you can still open accounts — it just limits which institutions will work with you.
Interest rates and account features to compare
Savings account interest rates vary widely and change frequently. Online banks currently offer the highest rates, sometimes 4% to 5% annual percentage yield (APY), while traditional banks often offer 0.01% to 0.5%. The difference compounds over time — $1,000 earning 4.5% APY grows to $1,045 in a year, while the same amount at 0.01% grows to only $1,000.10.
Beyond interest, compare monthly fees, minimum balance requirements, and withdrawal limits. Some accounts charge $5 to $15 per month unless you maintain a certain balance or set up direct deposit. Others have no fees at all. A few accounts limit how many times you can withdraw money per month, though this is less common now.
Check whether the bank offers tools you will actually use: mobile check deposit, bill pay, account alerts when your balance drops below a set amount, or the ability to open sub-savings accounts for different goals. These features do not cost extra but make saving easier.
Frequently Asked Questions
Do I need a credit card to open a savings account?
No. A savings account requires only an ID, proof of address, and your Social Security number. Your credit score and credit history do not factor in. Banks check ChexSystems, which tracks banking behavior, not credit behavior.
Can I open a savings account if I do not have a permanent address?
Most banks require proof of address dated within 60 days, which is difficult without a lease or utility bill. Some credit unions and online banks accept a PO box, shelter address, or a letter from a social service agency confirming your address. Call ahead to ask what they will accept.
What is the difference between a savings account and a checking account?
A savings account is meant for money you are setting aside and not spending regularly. A checking account is for everyday spending and bill payments. Savings accounts historically limited withdrawals per month, though that rule is no longer enforced. Interest rates are usually higher on savings accounts.
How much money should I deposit to open an account?
That depends on the bank. Some have no minimum opening deposit. Others require $25 to $100. A few waive the opening deposit if you set up direct deposit. Check the bank's website or call to confirm their opening deposit requirement before you go in.
Can I open a savings account online if I do not have a checking account to link?
Yes, but it is slower. You can fund the account by mailing a check or transferring money from another person's account. Some online banks also accept wire transfers. Call the bank to ask which methods they offer if you cannot link an existing account.