Banks, credit unions, and online-only institutions are your three main routes, and the choice depends on whether you need a physical branch, how much you want to keep in savings, and what fees matter most to you.
You can open an account at a traditional bank with local branches, a credit union in your area, or an online bank that operates entirely through apps and websites. Each has different requirements, different fee structures, and different reasons to choose it. The fastest route is usually online — you can open an account in minutes from your phone. The cheapest route is often a credit union if you meet their membership rules. The most convenient route depends on whether you need to deposit cash or speak to someone in person.
Your choice also depends on what you're trying to do with the account. If you need to deposit checks or cash regularly, you'll want either a bank with branches or a credit union with shared branching access. If you're moving money electronically and rarely need physical deposits, an online bank works fine and usually costs less. If you have a very small balance or irregular income, some banks and credit unions have accounts with no minimum balance requirement, while others do.
Key Takeaways
- Traditional banks with branches let you deposit cash and checks in person, but usually charge monthly fees unless you keep a minimum balance or set up direct deposit.
- Credit unions often have lower fees and better rates on savings, but you must be a member — membership is usually tied to your employer, your location, or an organization you belong to.
- Online banks have the lowest fees and highest savings rates, but you cannot deposit cash in person and customer service is by phone or chat only.
- You will need a government ID, proof of address (usually a recent utility bill or lease), and your Social Security number to open an account anywhere.
- Opening an account online takes 10 to 20 minutes; opening one in person at a branch takes 30 to 60 minutes and may require an appointment.
Traditional banks with physical branches
A traditional bank is the most common choice because you can walk in, deposit cash or checks, and talk to someone if something goes wrong. Banks like Wells Fargo, Bank of America, Chase, and regional banks like PNC or US Bank have branches in most cities. They offer checking accounts, savings accounts, and often money market accounts all in one place.
The trade-off is fees. Most banks charge a monthly maintenance fee — typically $10 to $15 — unless you meet one of their conditions: keeping a minimum balance (often $500 to $1,500), setting up direct deposit, or maintaining a certain number of debit card transactions per month. Some banks waive the fee if you're under 18 or over 65. Read the fee schedule before you open the account, because these fees add up fast if you're not meeting the waiver conditions.
To open an account at a bank, you can go to a branch in person or do it online on their website. In person, bring your government ID, proof of address, and your Social Security number. Online, you'll enter the same information and usually fund the account by linking another bank account or depositing a check by photo. The account is usually active the same day or the next business day.
Credit unions
A credit union is a nonprofit financial institution owned by its members. Credit unions almost always have lower fees than banks and often pay higher interest on savings accounts. The catch is that you have to be a member to open an account, and membership rules vary by credit union.
Some credit unions are open only to people who work for a specific employer — for example, a credit union run by a hospital system or a government agency. Others are open to anyone who lives in a certain county or zip code. Still others are open to members of an organization — a union, a professional association, a church, or a military branch. A few credit unions, called community development financial institutions (CDFIs), have very loose membership rules and focus on serving people with no credit history or a damaged credit history.
To find a credit union you can join, start with CO-OP or Alliant, which are credit union networks that let you search by location or employer. Once you find one that accepts you, the application process is similar to a bank: bring your ID, proof of address, and Social Security number. Many credit unions also offer shared branching, which means you can deposit cash or checks at other credit union branches even if they're not your home credit union.
Online banks
An online bank has no physical branches — you do everything through a website or mobile app. Banks like Ally, Charles Schwab, Discover, and Marcus have no monthly fees, no minimum balance requirements, and often pay higher interest on savings than traditional banks. Opening an account takes 10 to 20 minutes and you can fund it immediately by linking another bank account.
The downside is that you cannot deposit cash in person. If you need to deposit cash regularly, an online bank is not a good fit. You can deposit checks by taking a photo with the mobile app, and most online banks process those within one to two business days. You can also transfer money from another bank account, receive direct deposit, or use ATMs — most online banks partner with ATM networks so you can withdraw cash for free at thousands of locations.
Customer service at online banks is by phone, email, or chat — there is no one to talk to in person. If you're comfortable handling banking on your phone and don't need to deposit cash, an online bank is usually the cheapest and fastest option. Opening an account requires your ID, proof of address, and Social Security number, just like a traditional bank.
What you need to bring or provide
No matter where you open an account, you will need three things: a government-issued ID (a driver's license, passport, or state ID card), proof of your current address, and your Social Security number. Proof of address is usually a recent utility bill, lease agreement, or bank statement with your name and address on it — it typically has to be from the last 60 days. If you don't have a Social Security number, some banks and credit unions will open an account with an ITIN (Individual Taxpayer Identification Number) instead, but you'll need to ask first.
If you're opening an account in person at a branch, bring the physical ID and proof of address. If you're opening online, you'll upload photos of these documents or answer security questions to verify your identity. Some banks use a video call where you hold up your ID to the camera so they can see it in real time.
How long it takes to open an account
Opening an account online usually takes 10 to 20 minutes from start to finish. You enter your personal information, verify your identity, choose your account type, and link a funding source. The account is typically active the same day, though some banks take until the next business day to process the application.
Opening an account in person at a branch takes longer — usually 30 to 60 minutes — because the banker has to verify your information, explain the account features and fees, and sometimes set up online banking access while you're there. Some branches require an appointment, especially during busy hours. Call ahead or check the bank's website to see if you need one.
Comparing the three options
| Feature | Traditional Bank | Credit Union | Online Bank |
|---|---|---|---|
| Cash deposits in person | Yes | Yes (at member branches) | No |
| Monthly fees | Usually $10–$15 (waivable) | Usually $0–$5 | Usually $0 |
| Savings interest rate | Low (0.01%–0.05%) | Medium (0.25%–1.00%) | High (4.00%–5.00%) |
| Membership requirement | No | Yes (varies by union) | No |
| Time to open | 30–60 minutes in person; 10–20 minutes online | 30–60 minutes in person; 10–20 minutes online | 10–20 minutes online only |
| Customer service | Phone, in person, chat | Phone, in person, chat | Phone, email, chat only |
Frequently Asked Questions
Can I open an account if I have no credit history?
Yes. Banks and credit unions do not check your credit score to open a checking or savings account. They may check ChexSystems, a database of banking history, to see if you've had problems with past accounts — but even that is not a hard requirement at all institutions. Credit unions and online banks are often more flexible than traditional banks about this.
What if I don't have a permanent address?
Some banks and credit unions will accept a temporary address, a shelter address, or a PO box as proof of address. Call ahead and ask what they accept. Online banks may be stricter because they cannot verify your address in person. Some credit unions that serve homeless or low-income populations have special rules — search for CDFIs in your area.
Do I need a minimum deposit to open an account?
Most banks and credit unions do not require a minimum deposit to open an account, but they may require you to keep a minimum balance once it's open to avoid monthly fees. Online banks almost never have minimum balance requirements. Check the account terms before you open it.
Can I open an account if I'm under 18?
Yes, but you usually need a parent or guardian to co-sign. Some banks have teen checking accounts with lower fees and parental controls. Credit unions and online banks often have the same rules. Call the institution and ask about accounts for minors.
What's the difference between a checking and savings account?
A checking account is for money you use regularly — it comes with a debit card and checks. A savings account is for money you want to keep and earn interest on — it has fewer withdrawals allowed per month. Most people open both at the same time, but you can open just one if that's all you need.