The basic steps to open a savings account
Opening a savings account takes about 15 to 30 minutes and requires you to visit a bank or credit union branch in person, or complete an online application if the institution offers it. You will need to bring a government-issued ID (driver's license, passport, or state ID), proof of your current address (a recent utility bill or lease), and your Social Security number. Some banks also ask for an initial deposit before they open the account, though many have no minimum.
The process itself is straightforward: you tell the bank or credit union you want to open a savings account, they give you an application form (or you fill one out online), you provide the documents they ask for, and they verify your information. Within a few minutes to a few hours, your account is active and you can start depositing money. You will receive a debit card, checkbook (if you request one), and online access to check your balance and move money.
Key Takeaways
- You need a government ID, proof of address, and your Social Security number to open an account at most banks and credit unions.
- Many banks let you open an account online without visiting a branch, though some still require an in-person visit.
- Initial deposits range from zero to several hundred dollars depending on the bank; many have no minimum at all.
- Your account is usually ready to use the same day, and you can begin depositing money immediately.
- Credit unions often have lower fees and higher interest rates than large banks, but membership requirements vary by location and employer.
What documents you need to bring
A government-issued photo ID is required by law. This can be a driver's license, state ID card, passport, or military ID. The bank needs to verify who you are before they open the account. If your ID is expired, call ahead to ask whether the bank will accept it; some will, some will not.
Proof of your current address is the second document most banks ask for. A recent utility bill (electric, gas, water, or internet), lease agreement, mortgage statement, or bank statement with your name and address on it will work. The document usually needs to be dated within the last 60 days. If you do not have one, ask the bank what alternatives they accept — some will take a government benefits letter or a letter from your employer.
Your Social Security number is required so the bank can report interest you earn and check whether you have unpaid debts or fraud flags on your record. If you do not have a Social Security number, ask the bank whether they offer accounts for non-citizens; some do, and some require an Individual Taxpayer Identification Number (ITIN) instead.
Banks versus credit unions: what the difference means for you
Banks are for-profit businesses owned by shareholders. Credit unions are member-owned nonprofits. This difference affects fees, interest rates, and how easy it is to open an account. Large banks like Chase, Bank of America, and Wells Fargo have branches everywhere and offer online tools, but they often charge monthly maintenance fees (usually $5 to $15) and pay very low interest on savings. Smaller regional banks and online-only banks often have no monthly fees and slightly higher interest rates, but fewer physical locations.
Credit unions typically charge no monthly maintenance fee and pay higher interest on savings accounts than banks do. However, you must be a member to open an account, and membership rules vary. Some credit unions are open to anyone in a geographic area; others require you to work for a specific employer, belong to a certain organization, or be related to a current member. You can search for credit unions you may be able to join at CO-OP.org or Alliant.org.
If you have had banking problems in the past — overdrafts, fraud, or unpaid fees — some banks will refuse to open an account for you. Credit unions are sometimes more flexible about this. You can also look into second-chance banking accounts, which are designed for people with banking history issues, though they often come with higher fees and lower interest rates.
Online accounts versus in-person accounts
Online-only banks (like Ally, Marcus, or Discover) let you open a savings account entirely on your computer or phone. You upload photos of your ID and proof of address, verify your Social Security number, and fund the account by linking it to an existing bank account or by receiving a wire transfer. The whole process takes 10 to 20 minutes, and your account is usually ready the same day. Online banks have no physical branches, so you cannot deposit cash directly, but they typically charge no monthly fees and pay higher interest than traditional banks.
Traditional banks and credit unions usually require you to visit a branch in person to open an account, though many now offer online opening as well. The advantage of in-person opening is that you can ask questions face-to-face and deposit cash immediately. The disadvantage is that you have to travel to a branch during business hours. If you choose in-person opening, call ahead or check the bank's website to see what documents they need and whether you should make an appointment.
What happens after you open the account
Once your account is open, you will receive login information for online and mobile banking. Write down your username and password and store them somewhere safe. You will also receive a debit card in the mail within 7 to 10 business days, and you can start using your account to deposit money before the card arrives. Most banks let you deposit checks by taking a photo with your phone, and you can transfer money from another bank account electronically.
Your bank will send you a monthly statement showing all deposits, withdrawals, and interest earned. You can view this statement online or request a paper copy. Check your statement regularly to make sure all transactions are correct and to catch any unauthorized activity. If you see something wrong, contact the bank immediately — you have a limited time window (usually 60 days) to report errors.
Interest on your savings account is paid monthly or quarterly, depending on the bank. The amount varies based on the current interest rate environment and the bank's rate. Online banks and credit unions typically pay more interest than traditional banks, so if you are saving for a long-term goal, comparing interest rates before you open an account can make a real difference over time.
Fees to watch for
Most savings accounts charge a monthly maintenance fee if your balance falls below a certain amount (often $500 to $2,500) or if you do not set up direct deposit. Some banks waive the fee if you maintain a minimum balance or link your savings account to a checking account. Online banks and credit unions usually have no monthly maintenance fee at all.
Other fees to ask about include overdraft fees (charged if you try to withdraw more than you have), wire transfer fees (charged to send money to another bank), and ATM fees (charged if you use an ATM that is not part of the bank's network). Ask the bank for a fee schedule before you open the account so you know what to expect. If a bank's fees seem high, shop around — many banks have no fees or very low fees.
If you have had banking problems before
If you have been denied a bank account in the past, you may have a record in ChexSystems or Early Warning Services, which are banking history databases. Banks check these databases before opening accounts. You can request a free copy of your report from both services to see what is on file. If there is an error, you can dispute it. If the record is accurate, you may need to wait a certain amount of time (usually one to five years, depending on the bank's policy) before trying again, or look for a second-chance banking account.
Second-chance accounts are designed for people with banking history issues. They often come with higher fees, lower interest rates, and stricter limits on how much you can deposit or withdraw. However, they can help you rebuild your banking record. After a year or two of using a second-chance account responsibly, you may be able to move to a regular savings account with better terms.
Frequently Asked Questions
Can I open a savings account without a Social Security number?
Some banks will open accounts for non-citizens using an Individual Taxpayer Identification Number (ITIN) instead. Call ahead to ask, because policies vary by bank. Credit unions are sometimes more flexible about this than large banks.
How much money do I need to open an account?
Many banks and credit unions have no minimum opening deposit. Others require $25 to $500. Check the bank's website or call to ask before you visit. If you do not have the minimum, ask whether they will waive it or let you deposit the money over time.
Can I open an account if I am under 18?
Yes, but you will need a parent or guardian to co-sign. Some banks offer teen savings accounts with parental controls. Ask the bank what options they have for minors.
How long does it take to receive my debit card?
Most banks mail debit cards within 7 to 10 business days. You can usually start using your account online or by transferring money before the card arrives. Some banks offer rush delivery for an extra fee.
What if I want to close my account later?
You can close a savings account at any time by visiting a branch or calling the bank. Withdraw any remaining balance, and the bank will close the account. There is usually no fee to close an account, but confirm this with your bank before you do.