The three main places to open an account
You can open a bank account at a traditional bank branch, a credit union, or an online bank. Each route has different requirements, different fees, and different ways you actually hand over your money to start. A traditional bank requires you to visit a physical location with ID and an initial deposit. A credit union requires membership first, which usually means living or working in a specific area or belonging to a particular group. An online bank lets you open an account entirely through a website or app, but you'll need to fund it by transfer from another account or by mailing a check.
The choice depends on what you need most: in-person help, low fees, access to cash, or the ability to open right now without leaving home. There is no single best answer—it depends on your situation and what matters to you.
Key Takeaways
- Traditional banks require a visit to a branch with a government ID and usually an opening deposit, but offer ATMs and tellers in your area.
- Credit unions often have lower fees and better interest rates, but you must meet membership requirements and may have fewer ATM locations.
- Online banks have no branch visits and typically lower fees, but you cannot deposit cash in person and must fund the account by transfer or mail.
- Opening deposits range from zero to several hundred dollars depending on the bank, and some accounts have monthly maintenance fees while others do not.
- You will need a government-issued ID and proof of address for any account, whether you open it in person or online.
Traditional banks: what you need to bring and how long it takes
To open an account at a traditional bank branch, bring a government-issued ID (driver's license, passport, or state ID card) and proof of your current address. Proof of address can be a utility bill, lease, mortgage statement, or recent bank statement—something dated within the last 60 days with your name and address on it. Some banks also ask for a second form of ID or your Social Security number.
The teller will ask you which type of account you want: checking, savings, or both. They will tell you the monthly fee (if any), the minimum balance required to avoid fees, and what the opening deposit needs to be. Many banks no longer require an opening deposit, but some still do—typically $25 to $100. The account opens on the spot, and you walk out with a debit card or a temporary card number you can use immediately. Your physical card arrives by mail in 7 to 10 days.
The main advantage is access to a teller who can answer questions, deposit cash without a fee, and help you if something goes wrong. The main disadvantage is that you have to go to a branch during business hours, and many banks charge monthly maintenance fees ($10 to $15) unless you meet conditions like keeping a minimum balance or setting up direct deposit.
Credit unions: membership first, then the account
Credit unions are member-owned financial institutions, so you must become a member before you can open an account. Membership requirements vary by credit union. Some require you to live in a specific county or work for a specific employer. Others let you join if you belong to a particular group—a union, a professional association, a church, or even a community organization. A few credit unions have no geographic or employment restrictions and let anyone join.
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 membership category. Once you find one that accepts you, you will need to visit a branch or apply online with your ID, proof of address, and Social Security number. Some credit unions require a small membership fee ($5 to $25) and a small opening deposit ($25 to $100). The membership process usually takes a few minutes if you do it in person, or a few hours to a day if you do it online.
Credit unions typically charge lower fees than traditional banks and offer better interest rates on savings accounts. The trade-off is that they have fewer ATM locations and branch locations than large national banks. However, most credit unions participate in shared branching networks, which means you can do basic transactions at other credit unions' branches even if you are not a member there.
Online banks: no branch, lower fees, but you need another account to start
Online banks have no physical branches. You open an account entirely through a website or mobile app, and you manage it the same way. You will need a government-issued ID and proof of address, just like at a traditional bank, but you upload photos of these documents instead of showing them in person. The process usually takes 10 to 15 minutes.
The catch is that you cannot deposit cash in person. To fund your account, you must transfer money from another bank account you already have, or you can mail a check to the bank's address. If you are opening your very first bank account and have no other account to transfer from, you will need to mail a check or ask someone else to transfer money for you. Some online banks let you set up direct deposit (for paychecks or government benefits) immediately, which is another way to fund the account without a transfer.
Online banks almost always have lower fees than traditional banks—many charge no monthly maintenance fee at all. They also tend to offer higher interest rates on savings accounts because they have lower overhead costs. The trade-off is that you have no teller to talk to and no physical location to visit if you need help. Most online banks offer customer service by phone, email, or chat, but not in person.
What documents you need for any account
| Document | What counts | Why it matters |
|---|---|---|
| Government ID | Driver's license, passport, state ID card, or military ID | Proves who you are and that you are old enough to open an account |
| Proof of address | Utility bill, lease, mortgage statement, or recent bank statement (dated within 60 days) | Confirms where you live; banks use this to comply with federal anti-money-laundering rules |
| Social Security number | Your nine-digit SSN | Banks use it to report interest earned and to check your banking history |
| Initial deposit (sometimes) | Cash, check, or transfer; amount varies by bank | Some banks require $0, others require $25 to $500 to open the account |
If you do not have a government ID, some banks and credit unions will open an account with an alternative form of identification—a passport card, a tribal ID, a school ID, or even a utility bill in your name. Call ahead to ask what your specific bank accepts. If you do not have a Social Security number, you may be able to use an Individual Taxpayer Identification Number (ITIN) instead, but this varies by bank.
Comparing fees and minimum balances across account types
Monthly maintenance fees are the biggest difference between banks. Traditional banks often charge $10 to $15 per month unless you meet certain 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. Credit unions typically charge lower fees or no fees at all. Online banks almost never charge monthly maintenance fees.
Overdraft fees are another cost to watch. If you spend more money than you have in your account, the bank can charge you $25 to $35 per overdraft. Some banks charge multiple overdraft fees in a single day if you make multiple transactions. Many online banks and some credit unions do not charge overdraft fees at all, or they let you opt out of overdraft protection so transactions simply decline instead of charging you a fee.
ATM fees matter if you use ATMs outside your bank's network. Traditional banks and credit unions usually let you withdraw cash free at their own ATMs, but charge $2 to $3 per withdrawal at other banks' ATMs. Online banks often reimburse ATM fees or partner with networks like Allpoint or MoneyPass to offer free withdrawals at thousands of ATMs nationwide. If you rarely use ATMs, this may not matter. If you use cash regularly, it can add up.
Special situations: no ID, no address, or no Social Security number
If you do not have a government ID, some banks will open an account with alternative documents. Call your local bank or credit union and ask what they accept. Some will take a passport card, a school ID, a tribal ID, or even a utility bill. Online banks are usually stricter and may not have a workaround.
If you do not have a permanent address, some banks will accept a shelter address, a PO box, or a care-of address (c/o someone else's home). Again, call ahead—policies vary. Credit unions are sometimes more flexible than large national banks on this point.
If you do not have a Social Security number, you may be able to use an ITIN (Individual Taxpayer Identification Number) instead. This is a nine-digit number issued by the IRS to people who file taxes but do not have an SSN. Not all banks accept ITINs, so you will need to ask. Some credit unions and community banks are more likely to work with you on this than large national chains.
How to decide: a quick comparison
Choose a traditional bank if you need to deposit cash regularly, want to talk to a person in person, and do not mind paying monthly fees. Choose a credit union if you want lower fees, better interest rates, and do not mind fewer branch locations. Choose an online bank if you want the lowest fees, do not need to deposit cash in person, and are comfortable managing your account entirely through an app or website.
If you are not sure which bank to use, start by checking what banks and credit unions are near you. Then visit their websites or call to ask about monthly fees, minimum balances, and opening deposits. Most banks will answer these questions over the phone in a few minutes. Once you have narrowed it down to two or three options, open an account at the one that fits your life best.
Frequently Asked Questions
Can I open a bank account online if I do not have another bank account to transfer from?
Yes. You can mail a check to the online bank's address, or you can set up direct deposit from your employer or from government benefits. Some online banks also let you deposit checks by taking a photo of the front and back through their app. Call the bank to ask what funding methods they offer before you open the account.
Do I need a Social Security number to open a bank account?
Most banks require one, but some will accept an ITIN (Individual Taxpayer Identification Number) instead. Call your local bank or credit union to ask. Community banks and credit unions are sometimes more flexible than large national chains on this requirement.
What happens if I do not have a government ID?
Some banks will open an account with alternative documents like a passport card, tribal ID, school ID, or utility bill. Call ahead and ask what your specific bank accepts. Online banks are usually stricter and may not have workarounds, so traditional banks and credit unions are your better bet.
How long does it take to open a bank account?
At a branch, it takes 15 to 30 minutes. Online, it takes 10 to 15 minutes. Your debit card arrives by mail in 7 to 10 days, but you can usually use your account immediately through the app or website.
Can I open an account with no opening deposit?
Yes. Many banks, credit unions, and most online banks require no opening deposit. Some still do—typically $25 to $100. Call or check the bank's website to see what they require before you visit.