What you need to open a savings account

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 before they will let you deposit money. The proof of address can be a utility bill, lease, mortgage statement, or government mail dated within the last 60 days — something with your name and current street address on it.

Some institutions also ask for an initial deposit before the account opens. This amount varies widely: some banks have no minimum, while others require $25, $100, or more. A few banks waive the minimum if you set up direct deposit from your employer or another regular income source. If you do not have an ID yet, some credit unions will work with you using alternative documents — ask before you visit.

If you do not have a Social Security number, you may still be able to open an account using an Individual Taxpayer Identification Number (ITIN). Not all banks accept ITINs, so call ahead or ask in person before you go. Credit unions are often more flexible on this than large national banks.

Key Takeaways

  • You will need a photo ID, proof of your current address, and your Social Security number or ITIN to open most savings accounts.
  • Initial deposit requirements range from zero to several hundred dollars depending on the bank or credit union you choose.
  • Credit unions often have lower minimums and more flexible ID requirements than national banks.
  • You can open an account in person at a branch, online through a website, or by phone with some institutions.
  • Some banks charge monthly fees, while others waive fees if you keep a minimum balance or set up direct deposit.

Where to open an account: banks versus credit unions

Banks and credit unions both offer savings accounts, but they work differently. Banks are for-profit companies; credit unions are member-owned nonprofits. This difference often shows up in fees and minimums. Credit unions typically charge lower monthly fees and have lower minimum balances than banks. They may also offer better interest rates on savings, though this varies by institution and changes over time.

Banks have more branches and ATMs in most areas, which matters if you need to deposit cash or withdraw money in person regularly. Credit unions have fewer locations, but many credit unions belong to shared branching networks that let you use other credit unions' branches for free. Before you choose, check whether the institution has branches or ATMs near your home or work.

Online banks have no physical branches but often have no monthly fees and no minimum balance. They work entirely through a website or app. Online banks are good if you rarely need to deposit cash and do not mind managing your account on a computer or phone. If you need to deposit checks or cash in person, an online bank alone may not work for you.

How to open an account online, in person, or by phone

Opening online is the fastest route. You visit the bank or credit union's website, click the button to open a savings account, and answer questions about yourself. You will upload photos of your ID and proof of address using your phone or computer camera. The bank verifies your information and usually opens the account within one business day. You can then transfer money in from another account or set up direct deposit from your paycheck.

Opening in person means visiting a branch with your documents. A staff member will look at your ID and address proof, take down your information, and open the account on the spot. You can deposit cash or a check immediately. This takes 15 to 30 minutes. In-person opening is useful if you want to ask questions, if you do not have a camera to photograph documents, or if you want to deposit cash right away.

Opening by phone is less common but possible with some banks and credit unions. You call their customer service line, answer questions about yourself, and they mail you forms to sign and return. This takes longer — usually one to two weeks — because of the mail time. Use this route only if you cannot visit a branch and do not have internet access.

Understanding fees and interest rates

Savings accounts come with different fee structures. Some charge a monthly maintenance fee ($5 to $15 is common), while others charge no monthly fee at all. Many banks waive the monthly fee if you keep a minimum balance — often $500 to $2,500 — or if you set up direct deposit. Read the fee schedule before you open the account so you know what to expect.

Interest rates on savings accounts are low but not zero. The rate your bank pays you depends on the Federal Reserve's current rate and on the bank's own decision. Rates change frequently and vary widely between institutions. An online bank might pay 4% to 5% annual interest, while a large national bank might pay 0.01%. The difference adds up over time, especially if you keep a large balance. Check the current rate before you open, but know that it will change.

Some accounts have tiered interest rates: you earn a higher rate if your balance is above a certain amount. Others offer the same rate no matter how much money you have. Compare both the fee structure and the interest rate when you choose where to open your account.

What happens after you open your account

Once your account is open, you can deposit money by transferring it from another bank account, depositing a check in person or through mobile deposit, or having your paycheck sent directly to the account. Most banks let you set up direct deposit for free through your employer's payroll system. This is the easiest way to get money into your savings account regularly.

You can withdraw money by visiting an ATM, going to a branch, or transferring the money to another account. Some savings accounts limit how many withdrawals you can make per month — this varies by bank and account type. Check your account agreement to see whether there are withdrawal limits.

Your bank will send you statements showing deposits, withdrawals, interest earned, and fees charged. You can usually view these online anytime or request paper statements by mail. Keep your statements so you have a record of your account activity.

If you have no ID or credit history

If you do not have a government-issued photo ID, some credit unions and banks will open an account using alternative documents. These might include a passport, a state ID card, a tribal ID, or a combination of documents like a birth certificate plus a utility bill. Call ahead to ask what documents the institution will accept — requirements vary.

If you have never had a bank account before, that is not a problem. Banks do not require credit history to open a savings account. They may check ChexSystems, a database that tracks banking history, but a first-time account holder will have no history to check. You can open a savings account even if you have been denied a checking account in the past.

If you have been flagged in ChexSystems for unpaid overdrafts or fraud, some banks will still work with you. Credit unions are often more willing to open accounts for people with banking problems. Ask whether the institution uses ChexSystems and whether they will consider your application despite any past issues.

Frequently Asked Questions

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

Yes, if you have an Individual Taxpayer Identification Number (ITIN). Not all banks accept ITINs, so call or visit in person to ask first. Credit unions are more likely than national banks to open accounts for people with ITINs. You will still need a photo ID and proof of address.

How much money do I need to open an account?

It depends on the bank or credit union. Some have no minimum deposit, while others require $25 to $500 to open. Many waive the minimum if you set up direct deposit from your paycheck. Ask about the minimum before you apply.

How long does it take to open an account online?

Online accounts usually open within one business day. You upload your ID and address proof, the bank verifies the information, and the account is ready to use. You can then transfer money in or set up direct deposit. In-person accounts open immediately.

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

A savings account is meant for money you want to keep and earn interest on. A checking account is meant for everyday spending and bill payments. Savings accounts often have withdrawal limits and pay interest. Checking accounts usually have unlimited transactions and pay little or no interest.

Do I need to keep a minimum balance to avoid fees?

Many banks waive monthly fees if you keep a minimum balance, but not all. Some charge no monthly fee regardless of your balance. Read the fee schedule for the account you are considering. If you cannot keep a minimum balance, look for an account with no monthly fee.