What happens when you open a bank account
Opening a bank account means you give a bank your personal information and money, and they hold it for you, process your payments, and let you withdraw it. The bank verifies who you are, checks your banking history, and decides whether to accept you. If they do, you get an account number, a debit card (usually), and access to online banking or a mobile app. The whole process typically takes 15 minutes to an hour in person, or 10 to 20 minutes online.
Most banks do not charge you to open an account, though some require a minimum deposit to start—often $25 to $100. A few banks have no minimum. Once the account is open, you can use it to receive paychecks via direct deposit, pay bills, transfer money to other people, and withdraw cash at ATMs.
Key Takeaways
- You will need a government-issued ID, proof of address (like a utility bill or lease), and your Social Security number or ITIN to open an account at most banks.
- Banks check ChexSystems, a banking history database, to see if you have unpaid overdrafts or fraud on record—a bad history can block you from opening an account.
- Opening online is faster than going to a branch, but you may need to verify your identity by uploading a photo of your ID or answering security questions.
- If a bank rejects you, second-chance banking programs and credit unions often have lower barriers and may still let you open an account.
- You can open an account with as little as $1 or $0 at many banks, though some require $25 to $100 as a minimum opening deposit.
Documents and information you need to bring
Have a government-issued photo ID ready—a driver's license, passport, or state ID card. The bank will scan or photograph it. You also need proof of your current address: a utility bill, lease, mortgage statement, or bank statement dated within the last 60 days. If you do not have one, some banks accept a government letter with your name and address, like a tax return or benefits notice.
Bring your Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) if you have one. The bank is required by federal law to collect this for tax reporting and fraud prevention. If you do not have either, ask the bank whether they can open an account without one—some will, but it is less common. You will also need to know your phone number and email address, which the bank uses to contact you and set up online access.
If you are opening an account for a child under 18, bring the child's birth certificate or Social Security card along with your ID and proof of address. Some banks require both parents or guardians to be present; others allow one. Call ahead to confirm what the bank needs.
How banks check your history before accepting you
Most banks run a check through ChexSystems, a database that tracks banking problems like unpaid overdrafts, fraud, or accounts closed due to negative balances. If you have a record there, the bank may deny you or require you to pay off the old debt first. You can check your own ChexSystems report for free at chexsystems.com—look for the "Consumer Disclosure" link.
Some banks also run a soft credit check, which does not affect your credit score. A few check your credit report directly, which does show up on your credit history. The bank is looking for signs you will not manage the account responsibly—multiple overdrafts, unpaid fees, or fraud. If you have been rejected before, ask the bank which specific issue blocked you so you know whether to pay it off or try a different bank.
If you have a negative ChexSystems record, you have the right to dispute it. Contact ChexSystems directly with proof that the information is wrong. If the bank made an error—say, they reported an overdraft you actually paid—ChexSystems can remove it. This process takes 30 to 60 days.
Opening an account in person at a branch
Walk into any branch of the bank you choose during business hours. Bring your ID, proof of address, and Social Security number. Tell the banker you want to open a checking or savings account (or both). They will ask you questions about your employment, income, and how you plan to use the account—this is routine and does not disqualify you unless you lie.
The banker will enter your information into their system, run the ChexSystems check, and usually tell you on the spot whether you are approved. If you are, they will give you a temporary debit card (or order one to arrive in 7 to 10 days), set up online banking access, and give you your account number. You can start using the account immediately, even if your physical card has not arrived yet.
Bring a checkbook or deposit slip if you have one, but the bank will provide these. If you want to deposit money to start the account, bring cash or a check made out to you. The bank will process it right away.
Opening an account online
Many banks let you open an account entirely on their website or mobile app without visiting a branch. Go to the bank's website, click "Open an Account" or "New Customer", and fill in your name, address, phone number, email, and Social Security number. The bank will ask about your employment and income.
Next, you will need to verify your identity. Most online banks ask you to upload a photo of your driver's license or passport—take a clear photo of both the front and back. Some banks use a video call where you show your ID to a banker on screen. A few send you a code by text or email that you enter to confirm your phone number or email address.
Once identity verification is complete, the bank usually approves you within minutes to a few hours. You will get an account number and online login immediately. Your debit card arrives by mail in 7 to 10 business days. Some online banks (like Chime or Varo) offer a temporary digital card you can use right away in Apple Pay or Google Pay while you wait for the physical card.
What to do if a bank rejects you
If a bank says no, ask why. The most common reason is a negative ChexSystems record. If that is the case, check your report and dispute any errors. If the record is accurate, you have two paths: pay off the old debt and reapply to the same bank (some will reconsider after 30 to 90 days), or try a different bank with looser standards.
Second-chance banking programs are designed for people with banking problems. Banks like Chime, LendingClub, and Varo market themselves this way and often approve people with ChexSystems records. Credit unions also tend to be more forgiving than large banks. You can find a credit union near you at co-opsharedbranch.org or your state's credit union league website.
Some banks offer basic or starter accounts with fewer features (no overdraft protection, lower ATM limits) but easier approval. Ask whether the bank you were rejected by offers this option. If you still cannot open an account anywhere, a prepaid debit card or check-cashing service is a temporary workaround, though both charge fees.
Minimum deposits and account fees
Most banks do not charge a monthly fee to hold a checking or savings account, but some do—typically $5 to $15 per month. You can avoid the fee by keeping a minimum balance (often $500 to $1,500), setting up direct deposit, or maintaining a certain number of debit card transactions per month. Read the fee schedule before you open the account.
Minimum opening deposits vary widely. Many banks require $0 to $25. Some require $100 or more. Online banks and credit unions tend to have lower or no minimums. If you do not have much money to start, look for a bank that advertises "no minimum opening deposit" or "open with $1"—these are real options.
Watch out for overdraft fees. If you spend more than you have, the bank charges you $25 to $35 per overdraft. Some banks let you turn off overdraft protection so transactions simply decline instead of charging you. This is a good option if you want to avoid surprise fees.
Frequently Asked Questions
Can I open a bank account without a Social Security number?
Some banks will open an account with an ITIN (Individual Taxpayer Identification Number) instead. A few banks, mostly credit unions, may open an account without either, but this is uncommon. Call the bank first and ask—do not assume they will turn you down.
How long does it take to open an account?
In person at a branch, 15 to 60 minutes. Online, 10 to 20 minutes for identity verification, then approval within hours to one business day. Your debit card arrives by mail in 7 to 10 business days, but you can use the account immediately with online transfers or a temporary digital card.
What if I do not have proof of address?
Bring a government letter with your name and address—a tax return, benefits statement, or court document. Some banks accept a cell phone bill or utility bill in a family member's name if you live with them. Call ahead and ask what the bank will take.
Can I open an account if I have been rejected before?
Yes. Try a credit union or a second-chance banking program, which are designed for people with banking problems. If the rejection was due to a ChexSystems record, dispute any errors first, then reapply to the original bank after 30 to 90 days if you have resolved the issue.
Do I need to keep a minimum balance?
Not at most banks. Some charge a monthly fee if your balance drops below a certain amount, but many have no minimum at all. Check the fee schedule before opening. Online banks and credit unions often have no minimum balance requirement.