What you need to open a bank account

You need a government-issued ID, proof of your current address, and your Social Security number. Most banks will also ask for your phone number and email. That is the core list — you can walk into a branch or complete the process online with those items.

The address proof can be a utility bill, lease, mortgage statement, or government mail dated within the last 60 days. If you do not have one, some banks will accept a bank statement from another institution, or a letter from a shelter or social service agency on letterhead. Call ahead to ask what your specific branch accepts, because policies vary.

If you do not have a Social Security number, you may still open an account using an Individual Taxpayer Identification Number (ITIN), though fewer banks offer this option. Credit unions are more likely to work with you if you have an ITIN. You will need to ask directly rather than assume.

Key Takeaways

  • You need a government ID, proof of address dated within 60 days, and your Social Security number or ITIN to open an account.
  • Banks and credit unions have different fee structures — some charge monthly maintenance fees while others are free if you meet a minimum balance or set up direct deposit.
  • Online banks typically have lower fees and higher savings rates than brick-and-mortar banks, but you cannot deposit cash in person.
  • The account opens when ready in most cases, though it can take one to three business days before you can use the debit card or transfer money.
  • If you have been denied a bank account before, a second-chance checking account or credit union may accept you even with a negative banking history.

Where to open an account: banks, credit unions, and online options

A bank is a for-profit institution that takes deposits and makes loans. Most charge a monthly maintenance fee (typically $5 to $15) unless you meet conditions like maintaining a minimum balance, setting up direct deposit, or keeping a linked savings account. Banks have physical branches where you can deposit cash, speak to someone in person, and access a teller.

A credit union is a nonprofit owned by its members. They typically charge lower fees than banks and offer better interest rates on savings accounts. You must be a member to open an account, which usually means living in a certain area, working for a specific employer, or belonging to an organization. Credit unions have fewer branches than banks, but many participate in shared branching networks so you can use other credit unions' ATMs and teller services.

Online banks have no physical locations. They charge no monthly fees, offer higher interest rates on savings, and have lower minimum balances. The trade-off is that you cannot deposit cash in person — you deposit by mailing a check, transferring from another account, or using mobile check deposit. If you need to deposit cash regularly, an online bank alone will not work for you.

What happens during the account opening process

If you open in person, bring your ID, address proof, and Social Security number. The banker will ask questions about your employment, income, and how you plan to use the account. They will run a check through ChexSystems, a database that tracks banking history — this is not a credit check and does not affect your credit score. ChexSystems reports closed accounts, overdrafts, and fraud. If you have a negative history there, you may be denied, but some banks specialize in second-chance accounts.

If you open online, you will upload photos of your ID and address proof, enter your Social Security number, and answer the same questions. The bank will verify your identity, which can take anywhere from a few minutes to 24 hours. Some online banks use video verification, where you speak to someone briefly on camera.

Once approved, your account opens when ready. However, you cannot use the debit card or transfer money for one to three business days while the bank processes the account in their system. Some banks mail the debit card; others let you order it online. You can start depositing checks or setting up direct deposit right away.

Monthly fees and how to avoid them

Most traditional banks charge a monthly maintenance fee between $5 and $15. You can waive this fee by meeting one or more conditions: maintaining a minimum balance (often $500 to $1,500), setting up direct deposit, keeping a linked savings account, or using the bank's mobile app. Ask the banker which conditions explore to your specific account type, because they vary.

Credit unions typically charge lower fees or none at all. Online banks almost never charge monthly maintenance fees. If you are choosing between institutions, compare the fee structure against how you actually plan to use the account. If you cannot maintain a minimum balance, a free online bank or credit union is a better fit than a traditional bank with a monthly fee.

Watch for overdraft fees, which occur when you spend more than your balance. These fees range from $25 to $35 per transaction and can stack up quickly. Many banks now offer overdraft protection, which links your checking account to a savings account and automatically transfers money if you overdraft. Ask whether this is free or costs a small fee.

Debit cards, ATM access, and how to use your account

When your account opens, you can request a debit card, which lets you spend money directly from your checking account at stores and online. The card arrives by mail within 7 to 10 business days. You can also withdraw cash at ATMs. If you bank with a large institution like Bank of America or Chase, you have access to thousands of ATMs. If you bank with a smaller bank or credit union, you may have fewer ATMs, though credit unions often participate in shared networks.

Online banks have fewer ATM options. Some reimburse ATM fees charged by other banks; others partner with specific ATM networks. If you need frequent cash access, check the ATM network before opening an online account.

You can also withdraw cash by asking a cashier at a store — this is called a PIN debit transaction. The store gives you cash back from your purchase. This is free and works at most grocery stores and retailers.

Second-chance accounts if you have been denied before

If you have a negative ChexSystems history — unpaid overdrafts, fraud, or closed accounts due to mismanagement — you may be denied a regular checking account. A second-chance checking account is designed for people in this situation. These accounts have higher fees (sometimes $10 to $30 monthly) and lower limits on debit card transactions, but they report to ChexSystems, so responsible use rebuilds your banking history.

Credit unions are often more flexible than banks about past banking problems. Call a local credit union and explain your situation; they may work with you even if a bank would not. Some credit unions specialize in serving people rebuilding their financial lives.

You can also check your ChexSystems report for free at chexsystems.com. If there are errors, you can dispute them. Sometimes accounts are reported incorrectly, and clearing up the error can make you may be able to access for a regular account.

Moving money in and out of your account

You can deposit checks by mailing them, depositing them at a branch, or using mobile check deposit (taking a photo of the check through the bank's app). Mobile deposit usually clears within one business day. Mailed checks take longer.

You can transfer money from another account using the other bank's routing number and your new account number. This takes one to three business days. You can also set up direct deposit, where your employer or benefits program deposits money directly into your account — this is free and usually the fastest way to get paid.

To withdraw money, use your debit card, an ATM, or ask for cash back at a store. You can also write checks if your account comes with a checkbook, though many people rarely use checks anymore.

Frequently Asked Questions

Can I open a bank account if I do not have a permanent address?

Some banks will not open an account without an address, but others will accept a shelter address, a PO box, or a care-of address. Credit unions are often more flexible. Call ahead and explain your situation rather than assuming you will be turned away.

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

A checking account is for money you use regularly — you get a debit card and can write checks. A savings account earns interest and is meant for money you are setting aside. Most people open both: checking for daily spending and savings for emergencies or goals. Interest rates on savings accounts vary widely, so compare before opening.

How long does it take to open an account?

In person, it takes 15 to 30 minutes. Online, it takes 10 to 20 minutes, though verification can take a few hours to 24 hours. You can use the account when ready, but the debit card and transfers may take one to three business days to set up.

What happens if I close my account and then want to reopen one?

If you closed the account in good standing, you can usually reopen with the same bank. If you closed it due to overdrafts or other issues, the bank may require you to wait a period of time (often six months to a year) or open a second-chance account instead. Ask the bank directly about their policy.

Do I need a minimum balance to keep my account open?

It depends on the bank and account type. Some accounts require a minimum balance to waive fees; others have no minimum. Read the account agreement or ask the banker. If you cannot maintain a minimum, choose an account with no minimum requirement.