What you need to bring and why

Banks need to verify who you are and where you live before they open an account. This is a federal requirement called Know Your Customer (KYC), and it applies to every bank in the United States. You will need a government-issued photo ID — a driver's license, passport, or state ID card — and proof of your current address.

Proof of address can be a recent utility bill, lease agreement, mortgage statement, or bank statement in your name. It needs to show your name and current address, and it usually needs to be dated within the last 60 days, though this varies by bank. If you do not have a recent document, call the bank before you go in and ask what they will accept — some banks will take a letter from a shelter, a government benefits notice, or a lease signed within the last few months.

You will also need to provide your Social Security number. The bank uses this to check your banking history through ChexSystems, a system that tracks closed accounts, overdrafts, and fraud reports. If you do not have a Social Security number, bring your Individual Taxpayer Identification Number (ITIN) instead, though not all banks accept ITINs — call ahead to confirm.

Key Takeaways

  • Bring a government photo ID and proof of your current address dated within the last 60 days, though some banks accept older documents if you call first.
  • The bank will check your ChexSystems history, which records overdrafts and closed accounts, so be honest if you have had problems at other banks.
  • You can open an account in person at a branch, online through the bank's website, or by phone, and the process takes 15 minutes to an hour depending on the method.
  • Some banks charge monthly fees, while others waive fees if you keep a minimum balance or set up direct deposit.
  • If you have been denied before, second-chance banking programs exist at some banks and credit unions specifically for people with ChexSystems records.

Opening an account in person at a branch

Walk into any branch of the bank you have chosen and tell a staff member you want to open a checking or savings account. They will take you to a desk, ask for your ID and proof of address, and run a ChexSystems check. This takes about 10 minutes. Then they will ask you questions about how you plan to use the account — whether you will deposit checks, use the ATM, set up direct deposit, or transfer money online.

Be honest about your banking history. If you have overdrafted accounts or closed accounts with unpaid balances, the bank will see them in ChexSystems. Some banks will still open an account for you; others will decline. If you are declined, ask whether the bank has a second-chance account or whether you should try a credit union instead. Do not lie about your history — the bank already knows.

Once the bank approves you, they will give you a debit card (which may take 7 to 10 business days to arrive by mail), a checkbook if you requested one, and your account number. You can start using the account when ready through online banking and mobile apps, even if your physical card has not arrived yet.

Opening an account online

Many banks let you open an account entirely through their website. You will upload a photo of your ID and proof of address, enter your Social Security number, and answer questions about your identity. The bank uses software to verify your documents — this usually takes a few minutes, though some banks review documents manually and may take a day or two.

Online banks (banks with no physical branches) often have lower fees and higher interest rates on savings accounts because they have fewer costs. However, you cannot deposit cash online. If you need to deposit cash, you will need a bank with physical branches or an ATM network, or you will need to use a prepaid card or mobile payment app to move money in.

Once your account is approved online, you can log in and use it when ready. Your debit card will arrive by mail within 7 to 10 business days. Some online banks let you use your account number to set up direct deposit or transfers before your card arrives.

What happens if you have a ChexSystems record

ChexSystems records stay on file for five years. Common reasons for a record include bounced checks, overdrafts you did not pay back, accounts closed by the bank due to fraud, or too many failed login attempts. If you have a record, many mainstream banks will decline to open an account for you.

Your options are credit unions, which often have more flexible policies, or banks that specifically offer second-chance accounts. Second-chance accounts usually come with higher fees, lower ATM access, and restrictions on how much you can deposit or withdraw per day. However, they are designed for people rebuilding their banking history. After 12 to 24 months of good account behavior, you may be able to move to a regular account at the same institution.

You have the right to see your ChexSystems report. Visit chexsystems.com or call 1-800-428-9623 to request a free copy. If there is an error on your report, you can dispute it. Correcting errors sometimes makes you may be able to access for accounts you were previously denied.

Choosing between checking and savings accounts

A checking account is designed for frequent deposits and withdrawals. You get a debit card and checks, and you can move money in and out as often as you need. Most checking accounts have no limit on transactions. Some charge a monthly fee ($5 to $15 is typical), while others waive the fee if you keep a minimum balance (often $500 to $1,500) or set up direct deposit.

A savings account is designed to hold money and earn interest. Banks pay you a small percentage of your balance each month. Savings accounts typically limit you to six withdrawals per month (though this rule is less strictly enforced now). They usually have lower monthly fees than checking accounts, and some have no monthly fee at all.

Many people open both: a checking account for everyday spending and a savings account for money they want to set aside. Some banks offer a combined package with both accounts and waive fees on both if you meet one condition, like setting up direct deposit or keeping a combined minimum balance.

Fees and minimum balances to watch for

Banks make money from fees. Common fees include monthly maintenance fees ($5 to $15), overdraft fees (charged when you spend more than you have in the account — typically $25 to $35 per overdraft), ATM fees if you use another bank's ATM ($2 to $3 per transaction), and wire transfer fees ($15 to $30). Some banks charge a fee just to speak to a human on the phone.

Before you open an account, read the fee schedule on the bank's website or ask a staff member to walk you through it. Ask specifically: Does this account have a monthly fee? What is the minimum balance to waive it? What happens if I overdraft? Can I opt out of overdraft protection? (Opting out means the bank will decline transactions instead of charging you a fee, which is usually better.) How much does it cost to use an out-of-network ATM?

Online banks and credit unions often have lower fees than large national banks. If you are choosing between banks, compare the total cost of ownership — the monthly fee plus the overdraft fee plus ATM fees — not just the monthly fee alone.

Moving money into your new account

Once your account is open, you need to get money into it. The most common methods are direct deposit (your employer or government benefits program deposits money automatically), transfers from another bank account you own, or depositing a check.

To set up direct deposit, you give your employer or benefits program your bank's routing number and your account number. Both are on the bottom left of a check, or you can find them in your online banking portal. Direct deposit usually takes one to two business days to set up and then happens automatically on your regular pay schedule.

To transfer money from another bank, log into your new account's online banking portal and look for "Transfer" or "Link Account." You will enter the other bank's routing number and your account number there. The first transfer may take three to five business days while the bank verifies the account. After that, transfers usually take one to two business days.

To deposit a check, you can take it to a branch, use a mobile check deposit (photograph the check through the bank's app), or mail it to the bank. Mobile deposit is fastest — usually one business day. Mailed checks take five to seven business days.

Frequently Asked Questions

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

Yes, if you have an Individual Taxpayer Identification Number (ITIN). Not all banks accept ITINs, so call ahead. Credit unions are more likely to accept ITINs than large national banks. You will still need a government photo ID and proof of address.

What if I do not have a recent utility bill or lease for proof of address?

Call the bank and ask what documents they accept. Many banks will take a government benefits notice, a letter from a shelter or social services agency, a recent bank statement from another bank, or a lease signed within the last few months even if it is not recent. Some banks accept a letter from an employer on company letterhead.

How long does it take to open an account?

In person at a branch: 15 to 30 minutes. Online: a few minutes to a few hours, depending on whether the bank reviews documents automatically or manually. By phone: 20 to 45 minutes. You can use the account when ready in most cases, though your debit card takes 7 to 10 business days to arrive by mail.

What is the difference between a bank and a credit union?

Banks are for-profit companies owned by shareholders. Credit unions are nonprofit organizations owned by their members. Credit unions often have lower fees, higher interest rates on savings, and more flexible policies for people with banking problems. However, banks have more branches and ATMs. Both are insured by the federal government up to $250,000 per account.

Can I have multiple accounts at the same bank?

Yes. Many people have a checking account and a savings account at the same bank, or multiple savings accounts for different goals. Each account is insured separately up to $250,000 by the Federal Deposit Insurance Corporation (FDIC), so you can safely hold more than $250,000 across multiple accounts at the same bank.