What you need to open a savings account
To open a savings account at a bank or credit union, you will need a government-issued photo ID, proof of your current address, and your Social Security number or tax ID. Most banks ask for a driver's license or passport. For proof of address, bring a recent utility bill, lease, or bank statement with your name and address on it — usually dated within the last 60 days.
Some banks will let you open an account online without visiting a branch. You will upload photos of your ID and address proof, and the bank verifies them electronically. Other banks require you to come in person. A few banks have no minimum balance requirement; others ask you to deposit $25 to $100 to start. Credit unions often have lower minimums than large banks, sometimes as little as $5.
If you do not have a government ID, you can use a passport, tribal ID, or military ID. If you do not have any of these, some banks will work with you using alternative documents — call ahead and ask. If you do not have a Social Security number, you can use an Individual Taxpayer Identification Number (ITIN) instead.
Key Takeaways
- You need a photo ID, proof of address dated within 60 days, and your Social Security number or ITIN to open an account in person or online.
- Many banks let you open an account entirely online by uploading photos of your documents, though some still require a branch visit.
- Minimum opening deposits range from $0 to $100 depending on the bank; credit unions often have lower minimums than national banks.
- Once your account is open, you can deposit money by direct deposit, ATM, mobile app, or in-person at a branch or ATM.
How to deposit money into your account
Direct deposit is the fastest way to move money in. You give your employer or the organization sending you money your account number and routing number (both on the bottom left of your checks, or available through your bank's website or app). They deposit your paycheck or payment straight into your account, usually within one to two business days of payday.
You can also deposit cash or checks at an ATM, through a mobile app, or in person at a branch. ATM deposits of cash or checks are usually available immediately or within one business day. Mobile app deposits (where you photograph a check) typically post within one to three business days. In-person deposits at a teller window post the same day if you deposit before the branch closes.
Some banks charge a fee for deposits made at ATMs outside their network. Credit unions often belong to shared branching networks, which means you can deposit at other credit unions' branches for free. Check your bank's fee schedule before you open the account.
Understanding interest and how your money grows
A savings account earns interest — a small percentage of your balance that the bank pays you for letting them use your money. The interest rate varies by bank and changes over time. Right now, rates at large national banks are typically very low (often under 0.01 percent), while online banks and credit unions often offer higher rates (sometimes 4 to 5 percent or more). The higher the rate, the more your money grows without you doing anything.
Interest is usually calculated daily and added to your account monthly. If you have $1,000 in an account earning 4 percent annual interest, you earn about $40 per year, added in small amounts each month. The longer your money sits in the account, the more interest you earn.
Some savings accounts have tiered rates — meaning you earn a higher interest rate if your balance is above a certain amount. Others have a flat rate no matter how much you have. Read the account details before opening to understand what rate you will actually earn.
Fees to watch for and how to avoid them
Common savings account fees include monthly maintenance fees (usually $5 to $15), overdraft fees (charged if you spend more than you have), ATM fees (for using another bank's ATM), and inactivity fees (charged if you do not use the account for a long time). Not all banks charge all of these fees, and many online banks charge none of them.
To avoid fees, choose a bank with no monthly maintenance fee, keep your balance above any minimum if one exists, and use your bank's own ATM network. If you are worried about overdrafts, ask the bank to decline transactions that would overdraw your account instead of charging you a fee. Some banks offer this for free; others charge a small fee.
Read the fee schedule before you open the account — it is usually available on the bank's website under "Pricing" or "Fees." If you already have an account and are being charged fees, call the bank and ask if they can waive them, especially if you have been a customer for a while.
How to access your money when you need it
You can withdraw money from your savings account using an ATM card (also called a debit card), by visiting a branch and asking a teller, or through your mobile app or online banking. ATM withdrawals are instant. Teller withdrawals at a branch are also instant. Transfers to another bank account usually take one to three business days.
Some savings accounts limit how many times per month you can withdraw money — often to six withdrawals. This is a federal rule that used to apply to all savings accounts but now varies by bank. If you need to withdraw money frequently, look for an account with no withdrawal limits, or consider a checking account instead, which typically has no limit.
If you lose your ATM card, call your bank immediately. They can cancel it and send you a new one, usually within five to ten business days. In the meantime, you can still withdraw money at a branch or through your mobile app.
Moving money between your savings and checking accounts
If you have both a savings account and a checking account at the same bank, you can transfer money between them instantly through online banking or your mobile app. Most banks let you do this for free and as often as you want. The money usually appears in the receiving account within minutes.
If your accounts are at different banks, the transfer takes one to three business days. You will need the account number and routing number of the account you are sending money to. You can set up recurring transfers (for example, $50 every payday) so money moves automatically without you having to do it each time.
Some people use automatic transfers to build savings without thinking about it — they set up a transfer of $25 or $50 from checking to savings on payday, and the money moves before they can spend it. This is a common strategy for people who find it hard to save otherwise.
Keeping your account secure and monitoring it
Check your account regularly — at least once a month — through your mobile app or online banking. Look for transactions you do not recognize. If you see something wrong, contact your bank right away. Most banks have fraud protection, meaning if someone uses your account without permission, the bank will refund the money.
Never share your PIN, password, or account number with anyone except the bank itself. If a bank employee calls you asking for this information, hang up and call the bank's main number instead — real banks never ask for passwords over the phone. Be cautious with public WiFi when checking your account; use your mobile app or wait until you are on a secure connection.
Set up alerts through your bank's app so you get a notification when your balance drops below a certain amount, or when a large withdrawal happens. This helps you catch problems early. Most banks offer these alerts for free.
Frequently Asked Questions
Do I need a minimum balance to keep my account open?
It depends on the bank. Some banks have no minimum balance requirement at all. Others ask you to keep $100, $500, or more in the account to avoid a monthly fee. Online banks and credit unions often have lower or no minimums. Check the account details before you open it, or call the bank and ask.
What happens if my account sits unused for a long time?
Some banks charge an inactivity fee if you do not use your account for 12 months or longer. Others do not charge anything. If your account is inactive long enough (usually several years), the bank may close it and send your money to the state's unclaimed property program. To avoid this, make at least one transaction per year — even a small transfer counts.
Can I have more than one savings account?
Yes. Many people have multiple savings accounts at different banks to earn different interest rates, or to separate money for different goals. There is no limit to how many accounts you can have. Just keep track of them so you know where your money is.
What is the difference between a savings account and a money market account?
A money market account usually earns higher interest than a regular savings account, but requires a larger minimum balance (often $2,500 or more) and may limit withdrawals. If you have a small amount to save, a regular savings account is usually better. If you have a larger balance and do not need to withdraw often, a money market account may earn you more interest.
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 ChexSystems, which is a banking history report, to see if you have had problems with past accounts. If you have been denied before, some banks specialize in second-chance accounts. Credit unions are often more flexible than large national banks.