Start with what you need the account to do
Before you walk into a bank or open a browser, decide what you actually need. Do you want to deposit paychecks and pay bills? Do you need to send money to other people regularly? Are you trying to build credit, or do you already have a credit history? Do you have a steady address, or are you moving around? The answers change which banks will take you and which account type makes sense.
A checking account is for money you use regularly — deposits, withdrawals, bill payments, debit card purchases. A savings account holds money you want to keep separate and earn a small amount of interest on. Many banks sell them as a pair. Some people need only one; some need both.
If you have no banking history, a bad credit score, or unpaid bank fees from years ago, you may not may have access to for a standard account at a large bank. That does not mean you cannot bank — it means you need to know your options before you apply.
Key Takeaways
- Traditional banks, credit unions, and online banks all offer checking and savings accounts, but they have different requirements and fees.
- You will need a government-issued ID, proof of address, and usually a Social Security number or ITIN to open an account.
- If you have been denied a bank account before, second-chance accounts and prepaid cards are real alternatives that work for bill payments and direct deposit.
- Online banks often have lower fees and higher interest rates than brick-and-mortar banks, but you cannot deposit cash in person.
- Compare monthly fees, minimum balance requirements, overdraft policies, and interest rates before you commit.
Where to look: traditional banks, credit unions, and online banks
Traditional banks are what most people think of first — Chase, Bank of America, Wells Fargo, and hundreds of regional banks. They have physical branches where you can deposit cash, talk to a person, and get a debit card on the spot. The trade-off is higher monthly fees (often $10 to $15 if you do not keep a minimum balance) and lower interest on savings. Most require a Social Security number and a clean banking history.
Credit unions are member-owned nonprofits that often charge lower fees and pay higher interest than banks. You must be a member to open an account — membership is usually based on where you work, where you live, or a group you belong to. Many credit unions are part of shared branching networks, so you can use other credit unions' ATMs and branches. Credit unions are sometimes more flexible about past banking problems, though policies vary widely.
Online banks like Ally, Charles Schwab, and Discover have no physical branches but offer low or zero monthly fees and competitive interest rates. You deposit checks by taking a photo with your phone and withdraw cash at ATMs nationwide. The catch is you cannot deposit cash in person, and customer service is by phone or chat only. Online banks still require a Social Security number and proof of address.
Second-chance banking programs exist specifically for people who have been denied accounts elsewhere. Banks like Chime, LendingClub, and some regional banks offer accounts with lower or no fees, no credit check, and no minimum balance. They report to the banking system, so using one responsibly can help you move to a standard account later. Some require a small deposit to open.
Documents you will need to bring or upload
Every bank needs proof of who you are and where you live. Bring or upload these documents when you open an account:
- A government-issued photo ID — a driver's license, passport, or state ID card. Some banks accept a tribal ID.
- Proof of your current address — a utility bill, lease, mortgage statement, or government mail dated within the last 60 days. A bank statement from another institution also works.
- Your Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) if you do not have an SSN.
- Your phone number and email address.
If you are opening an account in person at a branch, bring originals. If you are opening online, you will upload photos or PDFs. Some banks ask for additional information — employment status, income, or whether you have had accounts closed for negative balances. Answer honestly; banks check these facts.
What to compare before you choose
| Factor | What to look for |
|---|---|
| Monthly maintenance fee | $0 is common at online banks and credit unions. Traditional banks often charge $10–$15 unless you keep a minimum balance or set up direct deposit. |
| Minimum balance to avoid fees | Some banks waive fees if you keep $500 or $1,500 in the account. Others have no minimum. If you cannot maintain a balance, choose a bank with no minimum or no monthly fee. |
| Overdraft policy | Some banks charge $30–$35 per overdraft. Others decline the transaction instead. A few offer overdraft protection (linking to savings or a credit line). Ask before you open. |
| Interest rate on savings | Online banks often pay 4% to 5% APY on savings. Traditional banks pay 0.01% to 0.5%. The difference matters if you keep money in savings long-term. |
| ATM access | Traditional banks have their own ATMs. Credit unions share networks. Online banks partner with ATM networks but may charge fees for out-of-network use. |
| Debit card | Most banks issue a debit card immediately or within days. Some second-chance accounts take longer or charge a fee for the card. |
Visit each bank's website or call their customer service line and ask these questions directly. Do not rely on marketing language — ask for the actual fees and policies in writing.
If you have been denied before
Banks use ChexSystems, a banking history report similar to a credit report. If you owe money to a bank, had an account closed for fraud or too many overdrafts, or wrote bad checks, that information stays in ChexSystems for five years. Some banks will not open an account for anyone with a ChexSystems record.
If you have been denied, ask the bank why. If it is because of ChexSystems, you can request a free copy of your report at www.chexsystems.com to see what is listed. You can dispute errors. Even with a record, you have options: second-chance accounts, credit unions (which may not use ChexSystems), and online banks that are more flexible about history.
Another option is a prepaid card — a card you load money onto, like a gift card. Prepaid cards do not require a bank account, a credit check, or a ChexSystems report. You can use them for direct deposit, bill payments, and purchases. The downside is higher fees and no interest on your balance. Prepaid cards are a bridge, not a permanent solution, but they work while you rebuild your banking history.
Opening an account online versus in person
Opening online is faster — usually 10 to 15 minutes. You upload your ID and proof of address, answer questions about your identity, and the bank verifies you electronically. You get an account number and routing number immediately and can set up direct deposit the same day. Your debit card arrives by mail in 5 to 10 business days.
Opening in person takes longer but gives you a chance to ask questions and get a debit card on the spot. You sit with a banker who walks through the application, answers questions about fees, and can explain account features. If you are uncomfortable with technology or want to deposit cash right away, in-person is worth the time.
Some banks let you start online and finish in a branch, or vice versa. If you are unsure which route to take, call the bank's customer service line first — they can tell you what documents you need and whether you can open the type of account you want.
What happens after you open the account
Once your account is open, you will receive a debit card, checks (if you requested them), and login information for online banking. Set up online banking and mobile banking right away so you can check your balance, transfer money, and pay bills. Most banks let you set up bill pay for free.
If you have direct deposit set up through your employer, provide your new account number and routing number to your payroll department. Direct deposit usually takes one or two pay cycles to start. Until then, you can deposit checks by phone or in person.
Watch your account for the first month. Make sure deposits post correctly, fees are what you expected, and you understand how to use your debit card and online banking. If something is wrong, contact the bank immediately — most errors can be fixed quickly if you report them within 30 days.
Frequently Asked Questions
Can I open a bank account without a Social Security number?
Yes, if you have an ITIN (Individual Taxpayer Identification Number). Some banks also accept a passport or other government ID from outside the United States. Call the bank first to confirm they accept ITINs, because not all do. Credit unions are sometimes more flexible than large banks on this requirement.
How long does it take to open an account?
Online accounts open in 10 to 15 minutes. In-person accounts take 20 to 45 minutes. You can usually use the account and set up direct deposit the same day, but your debit card arrives by mail in 5 to 10 business days. Some banks offer rush card delivery for a fee.
What if I do not have a permanent address?
Most banks require proof of a current address. If you are homeless or moving frequently, use a shelter address, a friend's address with their permission, or a mail forwarding service address. Call the bank first to ask what they accept. Some credit unions and second-chance banks are more flexible about address requirements.
Do I need good credit to open a checking account?
No. Banks do not check your credit score for checking accounts. They check ChexSystems (banking history) and sometimes run a soft credit inquiry that does not affect your score. Even with bad credit, you can open a standard checking account at most banks.
What is the difference between a debit card and a credit card?
A debit card draws money directly from your bank account. A credit card borrows money from the card issuer, and you pay it back later. Bank accounts come with debit cards. Credit cards are separate products that require a credit application. You do not need a credit card to have a bank account.