What you need to bring and where to go

You can open a savings account at a bank, credit union, or online bank. Each requires the same basic documents: a government-issued photo ID (driver's license, passport, or state ID), proof of your current address (a utility bill, lease, or bank statement dated within the last 60 days), and your Social Security number. Some banks also ask for a second form of ID or proof of income, though this is less common for savings accounts than for checking accounts.

Banks and credit unions have physical branches where you can walk in and open an account in person, usually in 15 to 30 minutes. Online banks let you open an account from home using your phone or computer, typically in 10 to 15 minutes. The main difference is that in-person opening means you can deposit cash immediately and speak to someone if you have questions. Online opening is faster and you can do it at any hour, but you'll need to transfer money from another account or wait for a check deposit to clear.

Credit unions are member-owned and often have lower fees than banks, but you must meet their membership requirements—usually living or working in a certain area, or belonging to a specific group. If you don't meet the requirement, you can still use a bank or online bank instead.

Key Takeaways

  • You need a photo ID, proof of address, and your Social Security number to open a savings account at any bank, credit union, or online bank.
  • In-person opening at a branch takes 15 to 30 minutes and lets you deposit cash right away; online opening takes 10 to 15 minutes but requires a transfer from another account.
  • Credit unions often charge lower fees than banks but require you to meet membership rules based on where you live or work.
  • Online banks typically offer higher interest rates on savings but have no physical branches and may charge fees if you need to withdraw cash at an ATM.
  • Bring original documents, not copies, and have your Social Security number memorized or written down before you arrive.

Choosing between a bank, credit union, and online bank

Banks are the most common choice. They have branches in most towns and cities, ATMs everywhere, and staff who can help you in person. The trade-off is that many banks charge monthly fees ($5 to $15) unless you keep a minimum balance or set up direct deposit. Some waive the fee if you open a checking account at the same time.

Credit unions are smaller and member-owned, so they often charge no monthly fee and pay higher interest on savings. The catch is membership: you might need to live in a certain county, work for a specific employer, or belong to an organization. If you may have access to, credit unions are usually the cheapest option. You can find credit unions that serve your area at CO-OP.org or Shared Branch Locator on the CO-OP website.

Online banks have no physical location, so they can't take cash deposits and have no in-person support. But they pay the highest interest rates on savings accounts (often 4% to 5% annually, compared to 0.01% at many traditional banks) and charge no monthly fees. Online banks work best if you already have another bank account to transfer money from, or if you get paid by direct deposit.

What happens during the opening process

At a branch, a banker will ask you to fill out a form with your name, address, date of birth, Social Security number, and employment information. They'll scan your ID and proof of address, then run a background check through ChexSystems (a banking history database). This check takes a few minutes and does not affect your credit score. If you pass, your account opens immediately and you can deposit money the same day.

Online, you'll enter the same information into a form on the bank's website or app. You'll upload photos of your ID and proof of address, and the bank will verify them electronically. Some online banks ask you to verify your identity by answering security questions based on your credit history. Once approved, your account opens within hours or the next business day, but you won't be able to deposit cash—you'll need to transfer money from another bank account or wait for a check to clear.

A few banks may decline you if ChexSystems shows a history of unpaid overdrafts or fraud at other banks. If this happens, ask the banker what the issue is. Some banks specialize in second-chance accounts for people with banking history problems; Chime, LendingClub, and GoBank are examples, though they charge higher fees or require direct deposit.

Minimum deposits and account features

Most banks require a minimum opening deposit of $0 to $100. Some online banks ask for $25 or $100 to start. A few banks require a higher minimum ($500 to $1,000) to avoid monthly fees, but these are less common for savings accounts. Ask the bank what the minimum is before you open the account so you know how much to bring or transfer.

Once your account is open, you can deposit money by transferring it from another bank account, depositing a check through the bank's mobile app, or (at a branch) handing cash to a teller. You can withdraw money by visiting a branch, using an ATM, or transferring it to another account. Most banks let you make up to six withdrawals per month from a savings account without penalty; if you exceed that, you may be charged a fee or the account may be converted to a checking account.

Interest rates vary widely. Online banks currently pay 4% to 5% annually on savings, while traditional banks pay 0.01% to 0.5%. The rate changes based on the Federal Reserve's interest rate, so check the bank's website for the current rate before you open. Even a small difference adds up over time: $1,000 in a 4.5% account earns $45 per year, while the same amount in a 0.01% account earns less than $1.

Setting up online and mobile access

When you open an account, the bank will give you a username and password (or ask you to create one) so you can log in online or through their mobile app. Use a strong password—at least 12 characters, with uppercase and lowercase letters, numbers, and symbols. Write it down in a safe place or use a password manager like Bitwarden or 1Password.

Most banks also offer two-factor authentication, which sends a code to your phone or email when you log in from a new device. Turn this on as soon as you can, because it protects your account if someone steals your password. You can usually find the setting in the account security or privacy section of the app.

Once you're logged in, you can check your balance, see your transaction history, transfer money to other accounts, and set up alerts (for example, a text message if your balance drops below $100). These tools are free and included with your account.

Fees to watch for

Monthly maintenance fees are the most common charge, ranging from $5 to $15. Many banks waive this fee if you keep a minimum balance (usually $500 to $1,000), set up direct deposit, or open a checking account at the same time. Ask about fee waivers when you open the account.

Overdraft fees apply if you try to withdraw more money than you have in your account. These fees range from $25 to $35 per overdraft and can add up quickly if you're not careful. Some banks let you link your savings account to your checking account so that if you overdraw checking, money automatically transfers from savings to cover it—ask if this option is available.

ATM fees happen if you use an ATM that doesn't belong to your bank. Most banks charge $2 to $3 per out-of-network withdrawal. Online banks often reimburse these fees or partner with ATM networks to waive them. Credit unions usually have no ATM fees if you use a CO-OP or Shared Branch ATM, which are available nationwide.

Inactivity fees are rare but possible: if you don't use your account for 12 months or longer, some banks charge a small fee. This is uncommon, but check the bank's fee schedule to be sure.

What to do after your account opens

Once your account is open, set up a way to deposit money regularly. If you get paid by direct deposit, give your employer your bank's routing number and your account number (both appear on the bottom left of a check, or you can find them in the app). Direct deposit is free and deposits your paycheck automatically on payday.

If you don't have direct deposit, you can deposit checks through the bank's mobile app by taking a photo of the front and back. Checks usually clear within one to three business days. Some banks also let you deposit cash at a branch or partner retailer (like Walmart or CVS), though this may take longer to process.

Set a savings goal and decide how much you want to deposit each month. Even $25 or $50 per paycheck adds up over time. Many banks let you set up automatic transfers from your checking account to your savings account on a specific day each month, so you don't have to remember to do it manually.

Frequently Asked Questions

Can I open a savings account if I don't have a Social Security number?

Most banks require a Social Security number or Individual Taxpayer Identification Number (ITIN). Some banks accept an ITIN if you're a non-citizen. Call ahead and ask whether the bank accepts ITINs before you visit, because policies vary.

What if I don't have a proof of address?

If you're homeless or don't have a utility bill, some banks accept a letter from a shelter, social services agency, or government office that confirms your address. A few banks also accept a cell phone bill or insurance policy as proof of address. Call the bank and explain your situation—they may have options you don't know about.

How long does it take to access my money after I open an account?

At a branch, you can deposit cash and withdraw it the same day. If you transfer money from another bank, it usually takes one to three business days to appear in your account. Checks deposited through the mobile app typically clear within one to three business days as well.

Can I open a savings account if I'm under 18?

Most banks require you to be 18 to open an account alone. If you're younger, you can open a joint account with a parent or guardian, who will have access to the account and can monitor your spending. Some banks offer teen accounts designed for younger savers, with parental controls built in.

What's the difference between a savings account and a money market account?

A money market account usually pays higher interest than a savings account but requires a larger minimum balance (often $2,500 or more) and limits how many times you can withdraw per month. For most people starting out, a regular savings account is simpler and cheaper.