What you need to open an account

Most banks and credit unions will open an account for you in one visit if you bring a government-issued ID, proof of your current address, and an initial deposit. The ID can be a driver's license, passport, or state ID card. For proof of address, bring a recent utility bill, lease, or bank statement with your name and address on it — usually dated within the last 60 days, though this varies by bank.

Some banks will waive the initial deposit or accept as little as $1 to $25. Others require $100 or more. Call ahead or check the bank's website to know what they need before you go in. If you don't have a government ID yet, some credit unions and community banks will open accounts with alternative documents like a passport card, tribal ID, or even a combination of documents like a utility bill plus a Social Security card.

You'll also need to decide whether you want a checking account, savings account, or both. A checking account is for regular spending and bill payments. A savings account earns interest (usually a small amount) and is meant for money you're not spending right away. Many people open both at the same time.

Key Takeaways

  • Bring a government ID, proof of your address dated within 60 days, and your initial deposit — most banks will open an account the same day.
  • The initial deposit can be as low as $1 at some banks and credit unions, though others require $100 or more.
  • If you don't have a government ID, ask whether the bank accepts alternative documents like a passport card or tribal ID.
  • Decide whether you want checking, savings, or both before you go in, and compare monthly fees and minimum balance requirements across banks.

Where to open an account: banks versus credit unions

Banks are for-profit businesses with many branches and ATMs. Credit unions are member-owned nonprofits, usually smaller, with fewer locations but often lower fees. Both are insured by the federal government — banks through the FDIC (Federal Deposit Insurance Corporation) and credit unions through the NCUA (National Credit Union Administration) — so your money is protected up to $250,000 if the institution fails.

Banks tend to have more ATMs and online tools, but often charge monthly maintenance fees ($10 to $15 is common) unless you keep a minimum balance or set up direct deposit. Credit unions often have no monthly fee, lower overdraft fees, and better interest rates on savings, but you may have to be a member of a specific group — an employer, a union, a school, or a geographic area — to join. Some credit unions are open to anyone.

Online banks (like Ally, Charles Schwab, or Discover) have no physical branches but offer low or no fees and higher interest rates on savings. The trade-off is that you can't deposit cash in person — you deposit by mail or mobile app. Choose based on what matters most to you: branch access, low fees, or interest rates.

The step-by-step process

Step 1: Choose your bank or credit union. Search online for banks or credit unions near you, or use the CO-OP Network or Allpoint locator to find credit union or ATM access. Read reviews and compare monthly fees, minimum balances, and interest rates. If you're opening an account online, make sure the bank is FDIC-insured or the credit union is NCUA-insured.

Step 2: Gather your documents. Collect your ID, proof of address, and your initial deposit (cash or a check). If you don't have proof of address, call the bank first to ask what they'll accept — some take a lease, a mortgage statement, or even a letter from a government agency with your name and address.

Step 3: Visit in person or apply online. Walk into a branch during business hours, or go to the bank's website and click "Open an Account." If you apply online, you'll answer questions about your identity, employment, and income. The bank will verify your information and may ask you to upload photos of your ID and proof of address. Some online banks can open an account in minutes; others take one to three business days.

Step 4: Complete the account agreement. You'll sign (or electronically agree to) the bank's account agreement, which explains the terms — monthly fees, overdraft policies, how they handle disputes, and what happens if your account sits unused. Read it or ask questions before you sign. This is the contract between you and the bank.

Step 5: Make your initial deposit. Hand over your cash or check, or if you applied online, transfer money from another account or arrange a direct deposit from your employer. Your account is now open and you can start using it — though the bank may hold a check deposit for one to five business days before the money is available to spend.

What happens after your account opens

The bank will issue you a debit card, usually within 7 to 10 business days. You can use this card to withdraw cash from ATMs and pay for things in stores or online. Some banks let you use a temporary digital card in their mobile app while you wait for the physical card to arrive.

You'll also get a routing number and account number, which you need to set up direct deposit from your employer or to receive payments from other people. The bank will give you these numbers on your account statement or in the app. You may also receive checks (if you opened a checking account), though many people now pay bills online instead.

Set up online banking right away so you can check your balance, transfer money, and pay bills from your phone or computer. Most banks require you to create a username and password and may ask you to set up two-factor authentication (a code sent to your phone) for security. This takes about 10 minutes.

Fees to watch for

Monthly maintenance fees range from $0 to $15 depending on the bank and account type. Some banks waive the fee if you keep a minimum balance (often $500 to $1,500), set up direct deposit, or maintain a certain number of debit card transactions per month. Ask about this when you open the account.

Overdraft fees occur when you spend more money than you have in your account. The bank covers the transaction and charges you a fee — typically $25 to $35 per overdraft. Some banks charge multiple fees per day if you overdraft multiple times. You can usually opt out of overdraft protection, which means transactions will be declined instead of charging you a fee.

ATM fees apply if you withdraw cash from an ATM that doesn't belong to your bank. This is usually $2 to $3 per withdrawal. Use your bank's ATM network to avoid this, or choose a bank that reimburses out-of-network ATM fees (some do).

Foreign transaction fees apply if you use your debit card abroad or withdraw cash from an international ATM. This is typically 1% to 3% of the transaction. If you travel internationally, look for a bank that waives these fees or use a travel-friendly card.

If you've been denied a bank account before

Banks use ChexSystems, a checking account verification system, to screen applicants. If you've had unpaid overdrafts, written bad checks, or committed fraud at another bank, you may be flagged in ChexSystems and denied. You can request a free copy of your ChexSystems report at www.chexsystems.com and dispute any errors.

If you're in ChexSystems, some banks and credit unions will still open an account for you — they're called "second chance" banks. Look for local credit unions, community banks, or online banks that market themselves as second-chance options. You may have to accept higher fees or a smaller initial deposit limit, but you can rebuild your banking history.

If you've never had a bank account, you're not in ChexSystems and should have no problem opening one. If you're undocumented or don't have a Social Security number, some banks and credit unions will open an account with an ITIN (Individual Taxpayer Identification Number) instead. Call ahead to confirm they accept this.

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 and credit unions will open an account for you. You'll still need a government ID and proof of address. Call the bank first to confirm they accept ITINs, because not all do.

How long does it take to open an account?

In person, it usually takes 15 to 30 minutes. Online, it can take anywhere from a few minutes to three business days, depending on the bank's verification process. You can usually start using your account the same day or the next business day, though check deposits may take longer to clear.

What if I don't have proof of my address?

Call the bank and ask what they'll accept. Some take a lease, mortgage statement, utility bill, or even a letter from a government agency. A few banks will open an account with just an ID if you can't provide proof of address — ask before you visit.

Do I have to keep a minimum balance?

It depends on the bank and account type. Some accounts have no minimum; others require $500 to $2,500 to avoid monthly fees. Check the bank's fee schedule before you open the account, or ask the banker to show you accounts with no minimum balance requirement.

Can I open an account for someone else?

No. The person whose name is on the account must be present and sign the agreement themselves. If you want to manage money for a minor, you can open a joint account or a custodial account where you're the parent or guardian — the bank will explain the options.