Banks, credit unions, and online-only institutions all offer checking accounts
You can open a checking account at a traditional bank branch, a credit union, or an online bank. Each has different requirements, fees, and features. The choice depends on whether you want in-person service, lower costs, or specific perks like cash deposits or investment tools.
Most places let you start the process online or in person. You'll need a government ID, proof of address (usually a recent utility bill or lease), and your Social Security number. Some institutions also run a background check through ChexSystems, a banking history database, though this rarely blocks you from opening an account.
Key Takeaways
- Traditional banks offer branch locations and teller service but often charge monthly fees unless you meet balance or deposit requirements.
- Credit unions typically have lower fees and better interest rates on savings, but membership is limited to people who work for certain employers or live in certain areas.
- Online banks have no monthly fees and higher savings rates because they have no physical branches, but you cannot deposit cash in person.
- You can open most accounts online in 10 to 20 minutes, though some banks mail a debit card that takes 5 to 10 business days to arrive.
- A ChexSystems report may flag past banking problems, but this usually does not prevent you from opening a new account.
Traditional banks: branches, tellers, and monthly fees
Big banks like Chase, Bank of America, Wells Fargo, and regional banks like PNC or US Bank have physical branches where you can deposit cash, speak to a teller, and get help with problems. They offer checking accounts with features like overdraft protection, bill pay, and mobile apps. Most have no minimum opening deposit.
The trade-off is fees. Many charge $10 to $15 per month unless you keep a minimum balance (often $500 to $1,500), set up direct deposit, or maintain a linked savings account. Some waive fees for students or seniors. Read the fee schedule before you open—it is usually on the bank's website under "Checking Account Terms" or "Account Pricing."
Opening takes 15 to 30 minutes online or at a branch. If you open online, the bank mails your debit card in 5 to 10 business days. You can usually start using the account and transferring money before the card arrives.
Credit unions: membership, lower fees, and better rates
Credit unions are member-owned, not-for-profit institutions. They typically charge no monthly fees, offer higher interest on savings accounts, and charge lower overdraft fees than banks. Many also offer better rates on loans and credit cards.
The catch is membership. You can only join a credit union if you meet their membership criteria—usually working for a specific employer, living in a certain county or zip code, or belonging to an organization like a military branch or professional association. Some credit unions have opened membership to anyone in a geographic area, but this is not universal.
To find a credit union you can join, use the CO-OP Network locator or Credit Union Locator on the Credit Union National Association website. Enter your location or employer, and it will show you nearby options. Opening an account takes 15 to 30 minutes and usually requires an initial deposit of $5 to $25 to fund your account.
Online banks: no fees, no branches, no cash deposits
Online banks like Ally, Charles Schwab, Discover, and Chime have no physical branches and no monthly fees. They offer higher interest rates on savings accounts because they save money by not running branches. Most have no minimum balance requirements and no overdraft fees (though some charge a small fee if you overdraw).
The main limitation is cash. You cannot deposit cash at an online bank because there is no teller. Some online banks partner with ATM networks so you can withdraw cash for free, but depositing requires a mobile check deposit (taking a photo of a check) or a transfer from another bank account. If you regularly handle cash, an online bank may not work for you.
Opening an account takes 10 to 15 minutes on your phone or computer. You can start using the account immediately, though the debit card arrives in 5 to 10 business days. Some online banks like Chime offer instant digital debit cards you can use right away.
What you need to bring or provide
All banks and credit unions require the same basic information: your full legal name, date of birth, Social Security number, and a government-issued ID (driver's license, passport, or state ID card). You also need proof of your current address, usually a recent utility bill, lease, or mortgage statement dated within the last 60 days.
If you do not have a utility bill in your name, some institutions accept a bank statement, insurance bill, or government mail. Call ahead if you are unsure what counts as proof of address—requirements vary slightly by institution.
Some banks also ask about your employment and income, though this is optional information. They use it to flag accounts for tax reporting if you earn interest, not to decide whether to open the account.
ChexSystems checks and past banking problems
ChexSystems is a database that tracks banking history—bounced checks, overdrafts, and closed accounts. Many banks run a ChexSystems report when you open an account. If the report shows problems, the bank may deny the account or ask you to explain.
A ChexSystems report rarely blocks you from opening an account. Most banks will open an account even if the report shows past issues, especially if the problems are old or you can explain them. Some banks, like Chime and LendingClub, do not use ChexSystems at all.
If you are denied because of ChexSystems, you have the right to see your report for free. Visit chexsystems.com or call 1-800-428-9623 to request it. You can dispute errors or add a statement explaining the problems. After you fix your report, try opening an account again.
Comparing your options: a quick reference
| Type | Monthly Fee | Cash Deposits | In-Person Service | Best For |
|---|---|---|---|---|
| Traditional Bank | $10–$15 (often waived) | Yes, at branches | Yes | People who want teller help and branch access |
| Credit Union | Usually $0 | Yes, at branches | Yes | Members who may have access to; lower fees than banks |
| Online Bank | $0 | No (mobile deposit only) | No | People who rarely use cash and want no fees |
Frequently Asked Questions
Can I open a checking account if I have been denied before?
Yes. A past denial does not prevent you from trying again, especially at a different bank. If you were denied because of ChexSystems, request your free report, fix any errors, and wait a few months before trying again. Some banks are more lenient than others—online banks and credit unions often have fewer restrictions than large traditional banks.
Do I need a minimum deposit to open an account?
Most banks and online banks require no minimum opening deposit. Credit unions typically ask for $5 to $25 to fund the account. Some traditional banks waive the opening deposit but charge a monthly fee unless you maintain a minimum balance. Check the specific bank's requirements before you start.
How long does it take to use my new account?
You can usually start using your account the same day you open it—transferring money, setting up direct deposit, and paying bills online. Your physical debit card arrives in 5 to 10 business days. Some online banks like Chime issue a digital card you can use immediately in stores and online.
What if I do not have a proof of address?
Call the bank or credit union and ask what documents they accept. Many take bank statements, insurance bills, or government mail instead of utility bills. Some institutions have workarounds for people without a current address in their name—ask what options are available.
Can I open an account online if I do not have a computer?
Yes. You can open most accounts on a smartphone using the bank's mobile app or website. If you prefer in person, visit a branch of a traditional bank or credit union. Some credit unions and banks also let you open an account over the phone with a representative.