What you need to bring and where to go

Opening a savings account takes between 15 minutes and a few days, depending on whether you do it in person or online. You will need a government-issued ID (driver's license, passport, or state ID), proof of your current address (a utility bill or lease dated within the last 60 days), and your Social Security number. Some banks also ask for a phone number and email address.

You can open an account at a brick-and-mortar bank branch, a credit union, or an online bank. In-person accounts are fastest — you walk out with a debit card the same day. Online accounts take one to three business days because the bank verifies your identity remotely, usually by asking security questions based on your credit history or by sending a code to your phone or email.

You do not need an existing account at the bank to open a savings account there. You do not need to have a checking account first. Many people open a savings account at a different bank from where they keep their checking account, which can help them avoid spending the money they are trying to save.

Key Takeaways

  • Bring a government ID, proof of address, and your Social Security number to open an account in person, or have them ready if you are opening one online.
  • In-person accounts at a branch are ready to use the same day; online accounts take one to three business days for identity verification.
  • You can open a savings account at any bank or credit union without having an existing account there first.
  • Most banks require an opening deposit, which ranges from zero dollars to $25, though some online banks have no minimum.
  • Interest rates on savings accounts vary widely between banks, so comparing rates before you open can mean hundreds of dollars more over a year.

The step-by-step process at a bank branch

Walk into any bank branch during business hours and tell a teller or banker you want to open a savings account. They will hand you a form or pull one up on their computer. Fill in your name, address, phone number, email, and Social Security number. You will also choose a password for online banking and decide whether you want a debit card linked to the account (most people do not, since the point of a savings account is to keep the money separate).

Hand over your ID and proof of address. The banker will scan or photograph them and verify your information against their system. They will ask whether you want to make an opening deposit and how much. Many banks require a minimum opening deposit of $25 to $100, though some have no minimum. Once you hand over the money, the account is open. You will receive a debit card in the mail within five to seven business days, or you can ask for a temporary card to use immediately.

Before you leave, ask the banker for the account number and routing number. Write them down. You will need these if you want to set up automatic transfers from another bank account or if an employer needs to deposit money directly into the account.

Opening an account online

Go to the bank's website and click the button to open a new account. You will be asked to enter your name, address, phone number, email, and Social Security number. The bank will then ask you to create a username and password for online banking. Some banks ask you to verify your identity by answering security questions based on your credit history; others send a code to your phone or email that you type in to confirm you own that number or address.

Once your identity is verified, you will be asked for an opening deposit. You can usually transfer money from another bank account, or the bank will give you wire instructions if you want to send money another way. The account opens immediately, but you cannot move money in or out until the bank confirms the transfer, which takes one to three business days.

You will receive login credentials and an account number right away. You can start using online banking to check your balance and set up transfers, but do not expect the debit card to arrive for five to ten business days. Some online banks do not issue debit cards at all — they are designed for saving, not spending.

Understanding opening deposits and minimum balances

An opening deposit is the money you put in when you create the account. This is different from a minimum balance, which is the smallest amount the bank requires you to keep in the account at all times. Not all banks have both.

Some banks require an opening deposit of $25 to $100 but have no minimum balance requirement after that. This means you can deposit $100 to open the account, then spend it down to $5 if you want, and the bank will not close your account. Other banks require both an opening deposit and a minimum balance — for example, $100 to open and $500 to keep in the account. If your balance drops below the minimum, the bank may charge a monthly fee or close the account.

Online banks often have no opening deposit requirement at all. You can open an account with zero dollars and transfer money in later. This is useful if you want to open the account now but do not have money to deposit yet. Check the bank's website or call to confirm the opening deposit requirement before you go in or apply online.

Interest rates and how they affect your savings

A savings account earns interest, which is money the bank pays you for letting them hold your money. The amount of interest depends on the interest rate, which varies from bank to bank and changes over time. A bank offering 0.01% interest will pay you almost nothing; a bank offering 4.5% interest will pay you significantly more on the same amount of money.

Interest rates are higher at online banks than at brick-and-mortar banks, usually by 3% to 4%. This is because online banks have lower overhead costs. If you keep $10,000 in a savings account for a year, the difference between 0.01% and 4.5% is roughly $450. Over five years, it is closer to $2,500. Comparing rates before you open an account is worth your time.

Interest is usually added to your account once a month. Some banks add it daily but only pay it out monthly. Check the bank's website for the current rate, and remember that rates change — the rate when you open the account may not be the rate six months from now. If your bank's rate drops significantly, you can always move your money to a different bank.

What happens after your account is open

Once the account is open, you can start moving money into it. If you set up a transfer from another bank account, it usually takes one to three business days. If you deposit cash or a check at a branch, it posts immediately or within one business day. If you deposit a check by taking a photo on your phone (mobile deposit), it takes one to three business days.

You can set up automatic transfers from your checking account to your savings account on a schedule — for example, $50 every Friday. This is one of the easiest ways to build savings without thinking about it. You can change or cancel the transfer anytime through your online banking portal.

You can withdraw money from your savings account anytime, but federal law limits you to six withdrawals per month (this rule was suspended during the pandemic but has been reinstated by most banks). If you need to withdraw more than six times in a month, you may be charged a fee or the bank may convert the account to a checking account. For most people saving money, this limit is not a problem.

Frequently Asked Questions

Do I need a checking account to open a savings account?

No. You can open a savings account at any bank without having a checking account there or anywhere else. Many people open savings accounts at different banks from their checking accounts to keep the money separate and reduce the temptation to spend it.

What if I do not have a Social Security number?

You can open an account with an Individual Taxpayer Identification Number (ITIN) instead. Some banks also accept a passport number. Call the bank ahead of time to confirm what forms of ID they accept, since policies vary.

Can I open a savings account if I have bad credit?

Yes. Banks do not check your credit score to open a savings account. They may check your banking history using ChexSystems, a system that tracks bounced checks and closed accounts, but this is different from a credit check. Even if you have been denied a checking account in the past, you can usually open a savings account.

How much money should I deposit to open the account?

Deposit whatever the bank requires as a minimum opening deposit, which is usually $25 to $100. If the bank has no minimum, you can open with zero dollars and add money later. Start with what you can afford — the goal is to open the account and begin saving, not to deposit a large sum right away.

Can I change banks if I do not like the one I chose?

Yes. You can close a savings account anytime and move your money to a different bank. There is no penalty for closing an account. If you set up automatic transfers or direct deposits to the old account, you will need to update those with your new account number, so do that before you close the old account.