What you need to open a savings account

To open a savings account, you need a government-issued ID, proof of your current address, and your Social Security number or tax ID. Most banks and credit unions will ask for these three things before you can start. You do not need a minimum amount of money to walk in—some accounts let you open with $1, though many require $25 to $100 to begin.

The process takes between 15 minutes and an hour in person, or 10 to 20 minutes online. Banks verify your identity against their fraud databases and check whether you have had problems with other accounts through ChexSystems, a banking history report that most institutions use. If you have been flagged for overdrafts or fraud at another bank, some institutions will decline you, though others specialize in second-chance accounts.

You can open an account at a traditional bank, an online-only bank, or a credit union. Each has different requirements and different fees. Traditional banks usually have physical branches where you can deposit cash and talk to someone. Online banks have no branches but often charge no monthly fees. Credit unions are member-owned and sometimes have lower fees, but membership rules vary by location and employer.

Key Takeaways

  • You will need a government ID, proof of address, and your Social Security number to open any savings account.
  • Banks check your history through ChexSystems, so past overdrafts or fraud at another bank may affect whether you are accepted.
  • Online banks typically charge no monthly fees and let you open an account from home, but you cannot deposit cash in person.
  • Credit unions often have lower fees than banks but may require you to live in a certain area or work for a specific employer.
  • The entire process usually takes 15 minutes to an hour in person, or 10 to 20 minutes online.

Opening an account in person at a bank or credit union

Walk into any branch with your ID, proof of address (a utility bill, lease, or recent bank statement), and your Social Security number. Tell the teller or banker you want to open a savings account. They will ask you to fill out a signature card or application form with your name, address, phone number, and email. This usually takes five minutes.

The banker will then run your information through ChexSystems and their own fraud system. This takes a few minutes. If you pass, they will show you the account options—most banks offer a basic savings account and may also show you money market accounts or certificates of deposit (CDs). Ask about monthly fees, minimum balance requirements, and interest rates before you choose. Some accounts charge $5 to $15 per month if your balance drops below a certain level, while others charge nothing.

Once you choose an account, you will sign paperwork, receive a debit card (which may take 7 to 10 business days to arrive by mail), and get your account number. You can deposit money that same day. If you do not have cash, you can set up a transfer from another bank account, which usually takes one to three business days.

Opening an account online

Online banks let you open an account entirely from your computer or phone. Go to the bank's website, click "Open an Account," and enter your name, address, phone number, email, and Social Security number. The process is the same as in person, but faster—you will not wait in line or talk to anyone.

You will need to verify your identity, which online banks do in different ways. Some use a video call where you show your ID to a camera. Others send a code to your phone or email that you enter to confirm you own that number. A few ask you to answer security questions based on your credit history. This verification step takes 5 to 15 minutes.

After verification, your account opens immediately. You can transfer money from another bank account the same day, though the transfer itself takes one to three business days to complete. You will not receive a debit card in the mail for 7 to 10 days. Some online banks do not issue debit cards at all—you transfer money out when you need it instead.

What to do if you are declined

If a bank declines you, ask why. The most common reason is a ChexSystems report showing past overdrafts, fraud, or unpaid fees at another bank. You have the right to see your ChexSystems report for free. Go to www.chexsystems.com and click "Consumer Disclosure" to request it by mail or phone. The report takes 5 to 10 business days to arrive.

If the report contains errors—a closed account still showing as open, or overdrafts that were not yours—you can dispute them in writing. ChexSystems must investigate within 30 days. Once errors are corrected, you can reapply at the same bank or try a different one.

If the report is accurate, look for a second-chance checking or savings account. Banks like Chime, LendingClub, and some regional banks offer accounts to people with ChexSystems issues. These accounts usually have higher fees ($5 to $15 per month) and lower interest rates, but they let you rebuild your banking history. After 12 to 24 months of good standing, you can move to a standard account at a traditional bank.

Understanding fees and interest rates

Monthly maintenance fees range from $0 to $15 depending on the bank and account type. Some banks waive the fee if you keep a minimum balance (often $500 to $2,500) or set up direct deposit. Online banks almost never charge monthly fees because they have no physical branches to maintain.

Interest rates on savings accounts vary widely. As of early 2024, traditional banks pay 0.01% to 0.5% annual interest, while online banks pay 4% to 5.35%. The difference matters: on $10,000, a traditional bank might pay $1 per year, while an online bank pays $400 to $535. However, online banks offer no in-person service and cannot accept cash deposits.

Ask about overdraft fees before you open an account. If you accidentally spend more than you have, overdraft fees range from $25 to $35 per transaction. Some banks charge multiple fees per day if you stay overdrawn. A few banks (Ally, Charles Schwab, some credit unions) do not charge overdraft fees at all—they simply decline the transaction instead.

Setting up direct deposit and transfers

Once your account is open, you can move money in and out. The fastest way to fund a new account is direct deposit from your employer or government benefits. Ask your employer's payroll department for the direct deposit form, or log into your benefits account (Social Security, unemployment, tax refunds) and update your bank details there. Direct deposit usually starts within one to two pay periods.

You can also transfer money from another bank account you own. Log into your new account online or through the app, find "Transfer Money" or "Link Account," and enter the routing number and account number of your other bank. The first transfer usually takes one to three business days. Some banks let you transfer the same day if you use their app.

To withdraw money, use the debit card once it arrives, visit an ATM, or transfer money back to another account. If your bank is part of a shared ATM network (like Allpoint or MoneyPass), you can withdraw cash at thousands of ATMs with no fee. If you use an out-of-network ATM, expect a $2 to $3 fee from the ATM owner plus a fee from your bank.

Choosing between a bank and a credit union

Banks are for-profit institutions owned by shareholders. Credit unions are nonprofit institutions owned by their members. This difference affects fees, interest rates, and who can join.

Banks have more branches and ATMs, so they are easier to use if you need to deposit cash or talk to someone in person. They offer more account types and services. However, they charge higher fees and pay lower interest on savings.

Credit unions charge lower fees and pay higher interest, but you must be a member to open an account. Membership rules vary: some credit unions are open to anyone who lives in a certain county, others only to employees of a specific company or members of a specific organization. To find a credit union you can join, go to www.co-opsharedbranch.org or www.allpoint.com and search by location or employer.

Frequently Asked Questions

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

Most banks require a Social Security number or Individual Taxpayer Identification Number (ITIN). If you do not have either, some credit unions and online banks will open an account using a passport or state ID instead. Call ahead to ask, because policies vary by institution.

How long does it take to receive my debit card?

Debit cards usually arrive by mail within 7 to 10 business days. Some banks offer rush delivery for an extra fee. Until your card arrives, you can withdraw money by visiting a branch or ATM, or by transferring funds to another account online.

What is the difference between a savings account and a checking account?

Savings accounts are meant for money you keep and earn interest on. Checking accounts are meant for daily spending and bill payments. Savings accounts limit how many withdrawals you can make per month (usually six), while checking accounts have no limit. Savings accounts pay interest; checking accounts usually do not.

Do I need a minimum balance to keep my account open?

It depends on the bank. Some accounts require a minimum balance to avoid monthly fees—typically $500 to $2,500. Others have no minimum. Online banks almost never require a minimum. Check the account terms before you open to know what you need to maintain.

What happens if I close my account right after opening it?

You can close an account anytime. If you close within 30 days, some banks charge an early closure fee ($25 to $50), though many do not. Withdraw or transfer any remaining balance, then call or visit to close. The bank will confirm in writing.