What you need before you walk in or go online

Most banks and credit unions ask for the same core documents: a government-issued photo ID (driver's license, passport, or state ID card), proof of your current address, and your Social Security number. Some also ask for a second form of ID or a utility bill dated within the last 60 days to confirm where you live. A few institutions skip the address proof if you have a recent utility bill or lease agreement.

You will also need an opening deposit, though the amount varies widely. Some accounts have no minimum; others require $25, $100, or more. A handful of banks waive the opening deposit if you set up direct deposit of your paycheck. If you do not have the documents ready, call the bank or credit union first — waiting in line only to be turned away costs time.

If you do not have a Social Security number, some banks and credit unions will open an account using an Individual Taxpayer Identification Number (ITIN) instead, though not all do. Ask before you visit.

Key Takeaways

  • Bring a government photo ID, proof of your address, and your Social Security number or ITIN to open an account in person.
  • Opening deposits range from zero to several hundred dollars depending on the bank or credit union, and some waive the deposit if you set up direct deposit.
  • Online accounts typically take 5 to 10 minutes to open and let you start using the account within 24 hours, while in-person accounts are ready immediately.
  • Banks charge monthly fees ranging from zero to $15 or more, but many waive fees if you keep a minimum balance or receive direct deposit.
  • Credit unions often have lower fees and lower minimum balances than banks, but membership requirements vary by location and employer.

Opening an account in person at a branch

Walk into any branch during business hours with your documents and opening deposit. A banker or teller will ask you which type of account you want — usually a basic checking account, a checking account with rewards, or a student or senior account if you fit that category. They will explain the monthly fee (if any), the minimum balance needed to avoid fees, and whether the account earns interest.

The banker will then run a background check through ChexSystems or Early Warning Services, two companies that track banking history. This check looks for unpaid overdrafts, fraud, or closed accounts in bad standing. Most people pass without issue. If you have a history of overdrafts or closed accounts, some banks may decline you or require you to use a second-chance checking account, which has higher fees but fewer restrictions.

Once approved, you will sign paperwork, receive a debit card (which may arrive by mail in 7 to 10 days), and get temporary checks or a temporary card number you can use right away. Your account is active the same day.

Opening an account online

Online banks and many traditional banks let you open an account from your computer or phone without visiting a branch. The process takes 5 to 10 minutes: you enter your personal information, upload photos of your ID and proof of address, and agree to the account terms. Some banks verify your identity by asking security questions based on your credit history; others send a verification code to your phone or email.

Once approved, you can log in and see your account number and routing number within a few hours, though some banks wait until the next business day. You can set up direct deposit or transfers right away, but you cannot withdraw cash or use a debit card until it arrives by mail, which takes 7 to 14 business days. Some online banks let you request a temporary digital card you can use immediately with your phone's payment app.

Online accounts often have lower fees and higher interest rates than in-person accounts because the bank has lower overhead costs. However, you cannot deposit cash or speak to someone in person if you have a problem.

Understanding fees and minimum balances

Monthly maintenance fees range from zero to $15 or more, depending on the bank and account type. Many banks waive the fee if you keep a minimum balance (often $500 to $1,500), receive direct deposit, or maintain a certain number of debit card transactions per month. Some banks charge no monthly fee at all, though they may charge for overdrafts, out-of-network ATM withdrawals, or paper statements.

Overdraft fees typically run $25 to $35 per transaction, and a single purchase can trigger multiple overdraft charges if you go negative. Some banks offer overdraft protection, which links your checking account to a savings account or credit line and automatically transfers money if you overdraw. This costs less than an overdraft fee but still costs money.

Before you open an account, compare the fee structure of at least two or three banks or credit unions. A free checking account at one bank may cost $180 a year at another if you do not meet the minimum balance or direct deposit requirement.

Banks versus credit unions

Banks are for-profit institutions owned by shareholders; credit unions are member-owned nonprofits. Credit unions typically charge lower fees, offer better interest rates on savings, and have lower minimum balances than banks. However, credit unions have membership requirements — you might need to work for a specific employer, live in a certain area, or belong to an organization to join.

Banks have more branches and ATMs nationwide, which matters if you travel or move frequently. Credit unions often participate in shared branching networks that let you use other credit unions' branches, but the network is smaller than a bank's. If you bank online and rarely need a physical branch, this difference matters less.

To find a credit union you can join, search the CO-OP Network or Alliant Credit Union's locator tool online. If you do not fit any membership category, a bank may be your only option.

What happens after you open the account

Your debit card will arrive within 7 to 14 business days. You will need to activate it by calling the number on the back or using the bank's app. Some banks send a PIN by mail; others let you create one online. Once activated, you can use the card to withdraw cash at ATMs, make purchases, and pay bills online.

Set up online banking through the bank's website or app so you can check your balance, transfer money, and pay bills without visiting a branch. Most banks let you set up bill pay for free, which sends a check or electronic payment to a company on a date you choose. This is faster and safer than mailing checks yourself.

If you receive a paycheck, set up direct deposit with your employer so your pay goes straight into your account. This usually takes one or two pay periods to activate. Direct deposit is free and eliminates the need to deposit checks in person.

If the bank declines you

If a bank declines your application because of your ChexSystems report, you have the right to see what is in that report. Visit chexsystems.com or call 1-800-428-9623 to request a free copy. If there is an error, you can dispute it directly with ChexSystems.

If you have a history of overdrafts or closed accounts, look for a second-chance checking account. These accounts have higher fees and lower limits on debit card transactions, but they report to ChexSystems, which means good behavior will improve your record over time. After 12 to 24 months of no problems, you may be able to move to a standard account.

Credit unions are sometimes more flexible than banks about past banking problems. Call a few credit unions in your area and ask whether they work with people who have ChexSystems issues.

Frequently Asked Questions

Do I need a minimum balance to open an account?

Most banks and credit unions do not require a minimum balance to open an account, though some ask for an opening deposit of $25 to $100. A few waive the opening deposit if you set up direct deposit. Check with the specific bank or credit union before you visit.

How long does it take to open an account online?

The application itself takes 5 to 10 minutes. Approval usually happens within a few hours, though some banks wait until the next business day. You can use your account number and routing number immediately, but your debit card will not arrive for 7 to 14 business days.

What if I do not have a Social Security number?

Some banks and credit unions accept an Individual Taxpayer Identification Number (ITIN) instead. Call ahead to confirm the bank you want to use will accept an ITIN, because not all do.

Can I open an account if I have been declined before?

Yes. Request a copy of your ChexSystems report to see why you were declined, and dispute any errors. Then look for a second-chance checking account, which works with people who have past banking problems. Credit unions are sometimes more flexible than banks.

What is the difference between a debit card and a credit card?

A debit card draws money directly from your checking account, so you can only spend what you have. A credit card borrows money from the card issuer, and you pay it back later with interest. A checking account comes with a debit card; a credit card is a separate product you would need to request.