The bank verifies your identity and checks your history before the account opens
When you walk in or go online to open an account, the bank will ask for a government-issued ID, your Social Security number, and your current address. They run that information through a verification system to confirm you are who you say you are. This takes minutes to a few hours depending on whether you're in a branch or online.
At the same time, the bank checks ChexSystems or Early Warning Services — databases that track banking history. They're looking for past fraud, unpaid overdrafts, or accounts closed for cause. If you've had problems at another bank, this is where they'll see it. A bad history doesn't automatically disqualify you, but it may mean higher fees, lower opening deposit requirements, or a denial.
If everything clears, the bank creates your account number, assigns you a routing number (unique to that bank), and sets up your debit card and online access. You can usually start using the account the same day, though transfers and checks may take longer to clear.
Key Takeaways
- Banks verify your identity using a government ID and Social Security number, then check ChexSystems to see if you've had banking problems before.
- A past overdraft or closed account shows up in ChexSystems and may affect whether you're turned down or charged higher fees.
- Your account number and routing number are assigned immediately, but money deposited by check or transfer may not be available for one to three business days.
- If you're denied, you have the right to know why — ask the bank for the specific reason and contact information for the verification company.
- Some banks offer second-chance accounts designed for people with ChexSystems records, though they usually come with higher fees or lower limits.
What documents you need to bring or provide
You'll need a photo ID issued by a government agency — a driver's license, passport, state ID card, or military ID. The bank scans or photographs it to verify the name, date of birth, and address match what you provide.
You'll also need your Social Security number. The bank uses this to pull your credit report and check ChexSystems. If you don't have a Social Security number, some banks will open accounts using an Individual Taxpayer Identification Number (ITIN), though this is less common and may come with restrictions.
Bring proof of your current address — a utility bill, lease, or recent bank statement with your name and address on it. If you just moved and don't have a bill yet, some banks accept a government letter with your address, a lease, or a piece of mail from a government agency.
If you're opening the account online, you'll upload photos of your ID and may need to verify your address through a video call or by answering security questions based on your credit history.
How long money takes to show up in your account
Cash deposited at a branch or ATM is usually available immediately or within one business day. Checks take longer — the bank must send the check to the issuing bank to confirm the funds exist and the account is real. This process, called clearing, typically takes one to three business days for a check from another bank in the same country.
Money transferred from another bank using ACH (Automated Clearing House) usually arrives in one to two business days. Wire transfers are faster — typically same-day or next-day — but cost more and cannot be reversed once sent.
Direct deposits from an employer or government agency usually arrive on the scheduled date if you set up the account at least one business day before. If you set it up the day before payday, the deposit may be delayed to the following pay cycle.
The bank may place a hold on part of a large check or deposit while verifying it. They must tell you when the hold will be released. Federal law limits how long they can hold funds, but the exact timeline depends on the check amount and your account history.
What happens if the bank denies your application
The bank must provide a written reason for the denial. Common reasons include a ChexSystems record showing unpaid overdrafts, fraud, or a pattern of bounced checks at other banks. You have the right to request a copy of your ChexSystems report and dispute anything on it that's wrong.
If you were denied because of information in ChexSystems, contact the company directly to correct errors. ChexSystems has a dispute process, and you can file a complaint if they don't respond within 30 days. You can also ask the bank whether they'll reconsider if you bring a co-signer or open a second-chance account.
Second-chance accounts are designed for people with banking problems. They typically come with higher monthly fees, lower transaction limits, and no overdraft protection. Some banks offer them; others refer you to credit unions or online banks that specialize in this market.
If you were denied for reasons unrelated to ChexSystems — such as not meeting the minimum deposit or age requirement — ask whether you can reapply once you meet those conditions.
Fees and minimum balances you should know about
Most banks charge a monthly maintenance fee unless you meet certain conditions: keeping a minimum balance, setting up direct deposit, or maintaining a certain number of debit card transactions per month. The minimum balance varies widely — some banks require $500, others $5,000 or more. If your balance drops below the minimum, the fee kicks in.
Overdraft fees occur when you spend more than you have. The bank covers the transaction and charges you a fee — typically $25 to $35 per overdraft. Some banks charge multiple overdrafts in a single day; others charge only one per day. You can usually opt out of overdraft coverage, which means transactions will be declined instead of charged a fee.
ATM fees apply when you use an out-of-network ATM. Your bank's ATM is free; another bank's ATM usually costs $2 to $3. Some banks reimburse out-of-network fees if you maintain a high balance or have a premium account.
Wire transfer fees, foreign transaction fees, and paper statement fees are common add-ons. Ask the bank for a full fee schedule before you open the account — they're required to provide one.
How to set up online access and mobile banking
Most banks set up online access during account opening. You'll create a username and password, then set up two-factor authentication — usually a code sent to your phone or email. This protects your account if someone gets your password.
Download the bank's mobile app if you want to check your balance, transfer money, or deposit checks by photograph. Mobile check deposit is faster than going to a branch — the bank processes the image within one business day in most cases.
Set up alerts for low balances, large transactions, or failed login attempts. These notifications help you catch fraud or overdrafts before they become expensive problems.
If you have trouble logging in or forget your password, the bank's website has a recovery process. You'll usually answer security questions or verify your identity through your phone number or email. If you can't recover access, visit a branch with your ID and the bank will reset your credentials.
What to do if something goes wrong during opening
If the bank denies you and you believe the reason is wrong — for example, if ChexSystems has incorrect information about you — ask for the name and contact information of the verification company. You have the right to know which company provided the information that led to the denial.
Contact ChexSystems or Early Warning Services directly to request your report. You can dispute any inaccurate information in writing. The company has 30 days to investigate and respond. If they find the information is wrong, they'll correct it and notify the bank.
If you opened the account but money isn't showing up when it should, contact the bank's customer service. Provide the deposit date, amount, and method (check, transfer, or direct deposit). The bank can trace the transaction and tell you where it is in the clearing process.
If you notice unauthorized transactions on your new account, report them immediately. Federal law limits your liability to $50 if you report within two business days, and $0 if the bank's system was compromised. The bank will investigate and typically refund the money while they do.
Frequently Asked Questions
Can I open a bank account if I don't have a Social Security number?
Some banks will open accounts using an Individual Taxpayer Identification Number (ITIN) instead, though this is less common. Credit unions are often more flexible. You'll still need a government ID and proof of address. Call ahead to confirm the bank accepts ITINs before visiting.
What if I have a bad ChexSystems record from years ago?
Old records stay on ChexSystems for five to seven years depending on the type of issue. You can still open an account at many banks, but you may pay higher fees or face lower limits. Second-chance accounts are designed for this situation. You can also dispute any inaccurate information on your report.
How long does it take to get my debit card?
If you open the account in a branch, you may get a temporary card immediately or within a few days. A permanent card usually arrives by mail in five to ten business days. Online banks often send cards faster. You can usually start using your account online or through mobile deposit before the card arrives.
Can I use my account before my first deposit clears?
You can use your debit card or online transfers immediately, but the funds won't be available until the deposit clears. If you spend money before a check clears and your account goes negative, you'll be charged an overdraft fee. It's safer to wait for deposits to clear before spending.
What if the bank closes my account after I open it?
Banks can close accounts for cause — repeated overdrafts, fraud, or suspicious activity. They must give you notice and time to withdraw your money. If this happens, the closure goes on ChexSystems and makes it harder to open accounts elsewhere. Ask the bank why they closed it so you understand what to avoid at your next bank.