What you need before you start

To open a savings account, you will need a government-issued photo ID, proof of your current address, and your Social Security number. Most banks and credit unions ask for these three things in person or online before they create your account. Bring an original ID — a driver's license, passport, or state ID card — not a copy.

Proof of address can be a recent utility bill, lease, mortgage statement, or bank statement with your name and current address on it. If you do not have one of these, some banks will accept a government notice or insurance document instead. Call ahead and ask what they take if you are unsure.

You will also need to decide how much money to deposit to open the account. Most banks require a minimum opening deposit — this varies from $0 to $300 depending on the bank and the type of account. Some banks waive the minimum if you set up direct deposit from your paycheck.

Key Takeaways

  • You need a photo ID, proof of your address, and your Social Security number to open an account at any bank or credit union.
  • Opening deposits range from $0 to $300 depending on the bank; some banks waive the minimum if you arrange direct deposit.
  • You can open an account in person at a branch or online through the bank's website, and online accounts usually open the same day.
  • Compare monthly fees, interest rates, and minimum balance requirements across banks before you choose, because these vary widely.
  • If you have a history of overdrafts or closed accounts, credit unions and online banks often have fewer restrictions than large national banks.

Opening in person at a bank branch

Walk into any branch of the bank where you want to open an account during business hours. Bring your ID, proof of address, and Social Security number. Tell the teller or a new accounts representative that you want to open a savings account.

They will ask you questions about how you plan to use the account — whether you want to receive direct deposit, whether you want online access, and how much you want to deposit to start. They will also explain the monthly fees, the interest rate the account pays, and any minimum balance you need to keep. Read the fee schedule they give you before you sign anything.

The account opens the same day. You will receive a debit card in the mail within 5 to 10 business days, and you can start using online banking immediately. Some banks give you a temporary card number you can use right away while you wait for the physical card.

Opening online

Go to the bank's website and look for a button that says "Open an Account" or "New Account." You will fill out a form with your name, address, date of birth, Social Security number, and employment information. Upload a photo of your ID and proof of address using your phone camera or computer.

The bank will verify your information, usually within a few minutes to a few hours. Once approved, you will choose a username and password for online banking. You can then transfer money into the account from another bank account you own, or the bank will send you instructions for making your first deposit.

Online accounts open faster than in-person accounts — often the same day — because there is no waiting for a branch appointment. However, you cannot deposit cash online, so if you want to add cash to the account, you will need to visit a branch or use an ATM that the bank owns.

Comparing banks and credit unions

Banks and credit unions both offer savings accounts, but they work differently. Banks are for-profit companies owned by shareholders. Credit unions are nonprofit organizations owned by their members, and they often charge lower fees and pay higher interest rates on savings.

Before you open an account anywhere, compare three things: the monthly maintenance fee (or whether there is no fee), the interest rate the account pays, and the minimum balance required to avoid fees. A bank with no monthly fee but a 0.01% interest rate may cost you less than a credit union with a $5 monthly fee and a 4% interest rate, depending on how much money you keep in the account.

Large national banks like Chase, Bank of America, and Wells Fargo have many branches and ATMs, which is useful if you travel or move often. Online banks like Ally and Marcus have no physical branches but often pay higher interest rates and charge no monthly fees. Credit unions have fewer branches but often have better customer service and lower fees for people with lower account balances.

What happens after you open the account

Once your account is open, you can deposit money by transferring it from another bank account, depositing cash at an ATM or branch, or setting up direct deposit from your paycheck. Direct deposit is the fastest way to add money — your employer sends your paycheck straight to your account, and it arrives on payday without you doing anything.

You can withdraw money by using an ATM, visiting a branch, or transferring money to another account. Some banks limit how many times you can withdraw from a savings account each month — this is called a withdrawal limit. If you need to withdraw money more often, ask about a checking account instead, which usually has no withdrawal limits.

Your bank will send you a statement each month showing all deposits, withdrawals, and interest earned. You can view this statement online or ask for a paper copy in the mail. Keep these statements for your records.

If you have had banking problems before

If you have overdrafted accounts, had an account closed by a bank, or have a record in ChexSystems (a banking history report), some banks will turn you down. Large national banks check ChexSystems for almost everyone. Credit unions and online banks often have fewer restrictions and may open an account for you even if you have had problems.

Before you apply, you can check your own ChexSystems report for free at www.chexsystems.com. If there are errors on your report, you can dispute them. If the report is accurate, look for banks that advertise "second chance" accounts or "fresh start" accounts — these are designed for people rebuilding their banking history.

Some banks also offer secured savings accounts, where you deposit money into a savings account and that money serves as collateral. This is less common than it used to be, but if you cannot open a regular account, a secured account is an option.

Frequently Asked Questions

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

Most banks require a Social Security number, but some will open an account using an Individual Taxpayer Identification Number (ITIN) instead. Call the bank and ask whether they take ITINs before you go in. Credit unions are sometimes more flexible than banks on this.

How much money do I need to open an account?

This depends on the bank. Some online banks and credit unions require $0 to open. Others require $25, $100, or $300. Check the bank's website or call and ask about the minimum opening deposit for the specific account you want.

Can I open an account if I am under 18?

Yes, but you will need a parent or guardian to co-sign. Most banks allow minors to open accounts with an adult on the account. Some banks have special teen accounts with lower or no fees. Ask the bank about accounts for minors when you call.

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

A savings account is meant for money you want to keep and grow. A checking account is meant for money you spend regularly. Savings accounts usually pay interest and limit withdrawals; checking accounts usually pay no interest and allow unlimited withdrawals and debit card use.

How long does it take to open an account online?

Online accounts usually open within minutes to a few hours. You can start using online banking right away. However, you may not be able to withdraw money or use a debit card until the bank verifies your identity, which can take 1 to 3 business days.