Banks, credit unions, and online-only institutions all offer checking and savings accounts, but they differ in what they require upfront and what they charge

You can open an account at a traditional bank branch, a credit union, or an online bank. Each route has different requirements for identification, minimum deposits, and monthly fees. The fastest option depends on whether you have an ID, a Social Security number, and how much money you can deposit to start.

Traditional banks require you to visit a branch in person or complete an application online, then verify your identity with a government-issued ID. Credit unions work similarly but limit membership to people who meet their criteria—usually living or working in a specific area, or belonging to a particular employer or organization. Online banks skip the branch visit entirely and let you open an account from your phone or computer, though they still need identity verification.

The choice matters because branch banks offer in-person help and ATM networks, credit unions often charge lower fees, and online banks typically have no monthly fees but no physical location to visit.

Key Takeaways

  • Traditional banks require a government ID and proof of address, and most have minimum opening deposits ranging from zero to several hundred dollars.
  • Credit unions often have lower fees than banks but restrict membership to people who live, work, or have family in their service area.
  • Online banks have no monthly fees and let you open an account entirely on your phone, but you cannot deposit cash in person.
  • If you have no ID or Social Security number, some banks and credit unions offer second-chance accounts with higher fees and lower limits.
  • You can compare accounts by checking the bank's website for monthly maintenance fees, overdraft fees, minimum balance requirements, and ATM access.

What you need to open an account at a traditional bank

Most banks ask for a government-issued ID (driver's license, passport, or state ID), your Social Security number, and proof of your current address. Proof of address can be a utility bill, lease, or recent bank statement with your name and address on it. Some banks accept a cell phone bill or government mail. Call the bank ahead to ask what they accept, because rules vary by branch.

You will also need an opening deposit. Many large banks require $25 to $100 to start a checking account, though some have zero-dollar minimums. Savings accounts often require $100 to $500. If you cannot meet the minimum, ask whether the bank has a starter account or second-chance account with different terms.

The entire process takes 15 to 30 minutes at a branch, or 10 to 20 minutes online if you upload your ID and proof of address. Online applications usually let you fund the account immediately with a debit card or bank transfer.

Credit unions: membership requirements and lower fees

Credit unions are member-owned cooperatives, so you must meet their membership criteria before you can open an account. Most credit unions serve people who live or work in a specific county or region, work for a particular employer, or belong to an organization like a union or professional association. A few serve anyone in the United States, but most are local.

To find a credit union you can join, search the CO-OP Network or Shared Branch locator on the Credit Union National Association website, or ask your employer whether they sponsor a credit union. If you find one that serves you, the account-opening process is similar to a bank: bring ID, proof of address, and your Social Security number, plus your opening deposit (usually $25 to $100).

Credit unions typically charge lower monthly fees than banks—many have no monthly maintenance fee at all—and charge less for overdrafts and bounced checks. The tradeoff is that their ATM networks are smaller, though most credit unions participate in shared branching, which lets you withdraw cash at other credit unions' branches.

Online banks: no fees, no branches, no cash deposits

Online banks like Ally, Charles Schwab, and Discover have no physical branches and no monthly maintenance fees. You open an account entirely on your phone or computer by uploading a photo of your ID and providing your Social Security number and address. The process takes 5 to 10 minutes.

The main limitation is that you cannot deposit cash in person. You can fund your account by transferring money from another bank, using direct deposit from your employer, or mailing a check. Withdrawals work the same way: transfer to another account, use an ATM (many online banks reimburse ATM fees), or request a check.

Online banks are best if you rarely need cash, do not mind waiting a day or two for transfers, and want to avoid monthly fees. They are not a good fit if you need to deposit cash regularly or prefer talking to someone in person.

Second-chance accounts if you have no ID or Social Security number

If you do not have a government ID or Social Security number, some banks and credit unions offer second-chance accounts designed for people rebuilding credit or new to the banking system. These accounts have higher monthly fees (often $10 to $15), lower transaction limits, and may require a larger opening deposit.

To find a second-chance account, call banks and credit unions in your area and ask directly. Some also advertise them online under names like "basic accounts" or "starter accounts." You will still need some form of ID—a passport, tribal ID, or state ID card—and proof of address. If you have neither, ask whether the bank accepts an ITIN (Individual Taxpayer Identification Number) instead of a Social Security number.

Alternatively, some community development financial institutions (CDFIs) offer accounts with no Social Security number requirement. Search the CDFI Fund locator on the U.S. Department of the Treasury website to find one near you.

Comparing accounts by fees and features

Before you open an account, check the bank's website for the following costs and limits:

  • Monthly maintenance fee: The charge for keeping the account open. Many banks waive this if you maintain a minimum balance or set up direct deposit.
  • Overdraft fee: The charge if you spend more than you have. This ranges from $25 to $40 per overdraft at most banks.
  • Insufficient funds fee: A charge if a transaction is declined because you do not have enough money. This is separate from an overdraft fee.
  • ATM fees: What you pay to withdraw cash at an ATM not owned by your bank. Online banks often reimburse these; traditional banks rarely do.
  • Minimum balance requirement: The amount you must keep in the account to avoid fees. This varies from zero to several thousand dollars.

Write down the total monthly cost for each account under your normal spending pattern. If you overdraft once a month and use out-of-network ATMs twice a week, that account costs more than one with no overdraft fees and ATM reimbursement, even if the monthly maintenance fee is higher.

Opening an account online versus in person

Online accounts are faster and require no travel, but in-person accounts let you ask questions and get help on the spot. If you are comfortable uploading documents and following digital steps, online is simpler. If you want to understand the account before you commit, or if you have questions about fees or features, visit a branch.

Some people open both: an online account for everyday spending (because of low fees) and a local bank or credit union account for cash deposits and in-person help. This is common and costs nothing extra as long as you meet each account's minimum balance requirement.

If you choose to open in person, call ahead to confirm the branch is open and ask what documents to bring. Some branches are busier than others, and calling ahead can save you a trip.

Frequently Asked Questions

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

Some banks and credit unions accept an ITIN (Individual Taxpayer Identification Number) instead. Call your local bank or credit union and ask. If they say no, search for a CDFI in your area using the CDFI Fund locator on the Treasury website, or ask whether the bank offers a second-chance account with different requirements.

What if I do not have proof of address?

Ask the bank what documents they accept. Some take cell phone bills, government mail, or a lease agreement. If you have none of these, ask whether they accept a letter from a shelter, social services agency, or employer on letterhead with your name and address. A few banks will waive the proof-of-address requirement if you open the account in person with ID and a witness.

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

Online accounts are usually ready to use immediately, though transfers from other banks take one to three business days. In-person accounts at branches are ready the same day, but transfers still take one to three business days. Direct deposit from your employer typically starts within one to two pay periods.

Can I open an account if I have been denied before?

Yes. Banks use ChexSystems, a checking account history database, to screen applicants. If you were denied, ask the bank why and whether they offer a second-chance account. You can also request your ChexSystems report for free at chexsystems.com to see what information they have on file.

Do I need to open a checking account and a savings account, or can I just open one?

You can open just one. A checking account is for everyday spending and bill payments. A savings account is for money you want to keep separate and earn interest on. Many people start with just a checking account and add a savings account later if they want to save.