What you need before you walk in or go online

Opening a bank account requires two things: proof of who you are, and proof of where you live. Most banks will ask for a government-issued ID—a driver's license, passport, or state ID card—and a recent document showing your current address, like a utility bill, lease, or bank statement from another account. Some banks accept a phone bill or insurance statement instead.

You will also need to decide what type of account you want: a checking account (for everyday spending and bill payments), a savings account (for money you're setting aside), or both. Many banks offer packages that bundle them together. Bring your Social Security number or Individual Taxpayer Identification Number (ITIN) if you have one—banks use this to report interest earned and to check your banking history through ChexSystems, a system that tracks closed accounts and fraud.

If you don't have a government ID yet, you can get one through your state's Department of Motor Vehicles or your local courthouse. If you don't have an address—you're unhoused or living in a shelter—some banks will accept a shelter address, a PO box, or a letter from a social service agency confirming where you receive mail. Call ahead to ask what your specific bank accepts.

Key Takeaways

  • Bring a government-issued ID and a recent document with your current address; most banks accept utility bills or lease agreements.
  • You can open an account in person at a branch, online through a bank's website, or by phone with some online-only banks.
  • The process usually takes 10 to 20 minutes in person or 5 to 10 minutes online, and your account is often ready to use the same day.
  • If you have a history of overdrafts or fraud, ChexSystems may flag you, but you can still open an account at banks that don't use ChexSystems or that specialize in second-chance banking.
  • Monthly fees vary widely—some accounts are free, while others charge $5 to $15 per month depending on your balance or activity.

Opening an account in person at a branch

Walk into any branch of the bank you've chosen during business hours. Bring your ID, proof of address, and your Social Security number or ITIN. Tell the teller or banker you want to open a checking or savings account. They will hand you a form to fill out with your name, address, phone number, email, and employment information (if you have a job). You don't need to be employed to open an account, but banks ask anyway.

The banker will review your information, swipe your ID to verify it, and ask you to sign the account agreement—a document that explains the bank's rules, fees, and your rights. Read the fee schedule carefully: it will tell you whether there's a monthly maintenance fee, what happens if your balance drops below a minimum, and how much you'll be charged for overdrafts (spending more than you have). Ask questions if anything is unclear.

Once you sign, your account is open. The banker will give you a temporary debit card or tell you when your card will arrive by mail—usually 7 to 10 business days. You can start using your account immediately online or by phone, even if your physical card hasn't arrived yet. Some banks will let you use your phone to make payments right away.

Opening an account online

Go to the bank's website and look for a button that says "Open an Account" or "Sign Up." You'll enter your name, address, phone number, email, and Social Security number or ITIN into a form. The bank will ask you to create a username and password for online banking. You'll upload photos of your ID and proof of address using your phone or computer camera—make sure the documents are clear and fully visible.

Some online banks will verify your identity by asking security questions about your past (previous addresses, loan amounts, or employers). Others will ask you to link a bank account you already have so they can deposit a small amount of money and withdraw it to confirm you control that account. This process usually takes a few minutes.

Once the bank confirms your identity, your account opens and you can log in immediately. You won't receive a physical debit card for 7 to 10 business days, but many online banks let you use a virtual card number right away to make purchases online or through your phone. If you need cash, you can withdraw from ATMs that are part of the bank's network, or you can transfer money to another account and withdraw there.

What happens if you have a banking history problem

When you open an account, the bank checks ChexSystems, a database that records closed accounts, overdrafts, and fraud. If you've had accounts closed due to negative balances, too many overdrafts, or suspected fraud, ChexSystems will flag you. This doesn't automatically disqualify you—many banks still open accounts for people with ChexSystems records—but some mainstream banks will decline.

If you're declined, look for banks that specialize in second-chance banking. These include some credit unions, community banks, and online banks that either don't use ChexSystems or have more lenient policies. You can also ask the bank that declined you for the reason in writing; ChexSystems allows you to dispute inaccurate information. Contact ChexSystems directly at 1-800-428-9623 or through their website to request your report and file a dispute if something is wrong.

Second-chance accounts often come with higher fees or lower ATM access, but they're a real path back into the banking system. Once you've kept a clean account for 12 to 24 months, you can apply for a standard account at a mainstream bank.

Understanding fees and minimums

Bank fees vary widely. Some checking accounts have no monthly fee at all, especially if you set up direct deposit (having your paycheck sent straight to the bank) or maintain a minimum balance—often $500 to $1,500. Other accounts charge $5 to $15 per month regardless. Read the fee schedule before you open the account.

Common fees include overdraft fees (charged when you spend more than you have—usually $25 to $35 per transaction), ATM fees (if you use an ATM outside the bank's network—usually $2 to $3), and foreign transaction fees (if you use your card outside the US—usually 1 to 3 percent of the purchase). Some banks waive overdraft fees if you link a savings account or set up alerts when your balance gets low.

If you're on a tight budget, look for banks that advertise no-fee accounts or that waive fees for low-income customers. Some credit unions and community banks have programs specifically for this. Ask directly: "Do you have any accounts with no monthly fee?"

Getting your debit card and setting up online access

Your debit card will arrive by mail 7 to 10 business days after you open the account. When it arrives, call the number on the back to activate it—this usually takes one minute. You'll be asked to verify your identity by answering security questions or entering a code sent to your phone.

Set up online banking at the same time. Go to the bank's website, click "Log In," then look for "Enroll" or "First Time User." Enter your account number (on your debit card or in your welcome letter) and create a username and password. Write these down somewhere safe—not on a sticky note on your computer. Many banks also offer a mobile app; download it and log in with the same credentials.

Once you're logged in, you can check your balance, transfer money between accounts, set up bill payments, and receive alerts when your balance drops below a certain amount. Most banks let you set up automatic payments to bills so you don't have to remember to pay them manually. This is especially useful for rent, utilities, and loan payments.

What to do if you're denied

If a bank denies your account, ask why in writing. Common reasons include a ChexSystems record, an unpaid overdraft from years ago, or a fraud report. You have the right to know the specific reason. Once you know, you can either dispute the information with ChexSystems (if it's inaccurate) or apply to a bank that doesn't use ChexSystems.

If you were denied because of an unpaid overdraft, contact the bank that closed your account and ask what it would take to settle the debt. Some banks will negotiate a lower payoff amount if you pay in full. Once you've settled it, ChexSystems will update your record, and you'll have a better chance at a mainstream bank.

In the meantime, consider a credit union instead of a bank. Credit unions are member-owned and often have more flexible policies. You may need to join by opening a savings account (usually $5 to $25) and meeting a membership requirement—like living in a certain area or working for a specific employer. Ask your local credit union what their membership rules are.

Frequently Asked Questions

Can I open a bank account without a Social Security number?

Yes. If you have an Individual Taxpayer Identification Number (ITIN), most banks will accept it instead. If you have neither, some banks and credit unions will still open an account, but they may require additional documentation or a larger initial deposit. Call ahead and ask what your specific bank needs.

How much money do I need to open an account?

Most banks require an initial deposit of $0 to $100 to open a checking or savings account. Some have no minimum at all. A few require $500 or more, but these are less common. Check the bank's website or call to confirm the minimum before you go in.

What if I don't have a permanent address?

Some banks accept a shelter address, a PO box, or a letter from a social service agency as proof of address. Call the bank ahead of time and explain your situation—they may have a process for this. Credit unions and community banks are often more flexible than large national banks.

Can I open an account for someone else?

No. The person whose name is on the account must be present (in person or online) and must provide their own ID and signature. If you want to manage money for someone else—a child or an elderly parent—you can open a joint account together, or you can become an authorized user on their existing account.

How long does it take to use my account after I open it?

You can usually use your account the same day you open it—online, by phone, or through ATM transfers. Your physical debit card will arrive 7 to 10 business days later. If you need cash immediately, ask the banker for a temporary card or a withdrawal slip you can use at the branch.