What happens when you open a bank account

Opening a bank account takes between 10 minutes and a few days, depending on whether you do it online or in a branch. The bank verifies your identity, checks your background through ChexSystems (a banking history database), and either approves you when ready or asks for more information. Once approved, you get an account number, routing number, and access to deposit money, write checks, or set up direct deposit.

Most banks require the same basic things: a government-issued ID, proof of address, and your Social Security number. Some banks also ask about your employment or income, though this is less common for basic checking accounts. If you have had problems with a previous bank account — overdrafts you didn't pay back, fraud, or closed accounts — ChexSystems will flag it, and the bank may deny you or require a deposit to open the account.

Key Takeaways

  • You will need a government ID, proof of address, and your Social Security number to open an account at any bank.
  • Banks check ChexSystems, a database of banking history, so past overdrafts or closed accounts may affect whether you are approved.
  • Online accounts open faster (often in minutes) but require you to verify your identity through a video call or by uploading documents.
  • In-branch accounts take longer but let you ask questions and sometimes waive fees if you have a low starting balance.
  • If you are denied, second-chance banking programs and credit unions often have lower barriers than traditional banks.

Opening an account online versus in a branch

Online accounts are faster. You fill out the process on the bank's website, upload or photograph your ID and proof of address, and the bank verifies you through a video call or automated system. Most online banks approve you within minutes and send you a debit card within 5 to 7 business days. You can start using the account when ready through the app, even before the card arrives.

In-branch accounts take longer but give you a chance to ask questions and sometimes negotiate. A banker will review your documents, run the ChexSystems check, and usually approve you on the spot if everything is in order. You leave with a debit card the same day or within a few days. In-branch banking also works better if you have a complicated situation — a recent address change, no proof of address, or a ChexSystems flag — because a person can make exceptions that an automated system cannot.

Documents you need to bring or upload

Every bank requires a government-issued ID. This can be a driver's license, passport, state ID card, or military ID. The ID must be current and show your photo and signature. If your ID is expired, most banks will still accept it as long as it expired recently, but call ahead to check.

You also need proof of your current address. A utility bill, lease, mortgage statement, or government letter (like a tax return or benefits notice) dated within the last 60 days works. A bank statement from another bank also counts. If you have just moved and do not have a bill in your new name yet, some banks accept a lease or a letter from your landlord. A few banks will accept a cell phone bill or insurance statement, but this varies — ask before you go in or explore online.

Your Social Security number is required. The bank uses it to check your credit and verify your identity. If you do not have a Social Security number, some banks and credit unions will open accounts using an Individual Taxpayer Identification Number (ITIN) instead, but availability varies by institution.

What ChexSystems checks and how it affects you

ChexSystems is a database that tracks banking history — overdrafts, bounced checks, fraud, and closed accounts. When you explore for a bank account, the bank runs your name and Social Security number through ChexSystems. If nothing shows up, you are approved. If something does, the bank decides whether to approve you anyway, deny you, or ask you to keep a higher minimum balance.

Common ChexSystems flags include unpaid overdraft fees (especially if the account was closed while you owed money), multiple accounts closed for cause, or fraud reports. These stay on your ChexSystems record for five years. If you are flagged, you can request a copy of your ChexSystems report for free at chexsystems.com and dispute any errors. If the information is correct, some banks will still open an account for you if you agree to keep a higher opening deposit — often $500 to $1,000 — or if you use a second-chance banking program.

Opening an account with a low or no opening deposit

Most banks no longer require a minimum opening deposit. Large banks like Chase, Bank of America, and Wells Fargo let you open a checking account with $0. Credit unions and smaller regional banks vary — some require $25 to $100, others require nothing. Online banks almost never require an opening deposit.

If you have a ChexSystems flag, the bank may require a deposit to open the account. This is not a fee — it becomes part of your account balance. A bank might ask you to deposit $500 or $1,000 upfront, which you can then use or withdraw once the account is open. A few banks will waive this requirement if you set up direct deposit of your paycheck.

Fees to watch for when you open

Most checking accounts have no monthly fee, but some do. When you open an account, ask about monthly maintenance fees, overdraft fees, and ATM fees. Monthly fees range from $0 to $15 depending on the bank and account type. Some banks waive the fee if you keep a minimum balance (often $500 to $1,500) or set up direct deposit.

Overdraft fees are charged when you spend more than you have in the account. These typically cost $25 to $35 per overdraft. Some banks charge multiple overdraft fees in a single day if you make several purchases; others cap it at one per day. When you open the account, ask whether overdraft protection is automatic or whether you have to opt in. You can also decline overdraft protection entirely, which means transactions will be declined rather than charged a fee.

If you are denied or have a ChexSystems problem

If a bank denies you, ask why. The bank must tell you whether it was because of ChexSystems, your credit report, or another reason. If it was ChexSystems, get your report and dispute any errors. If the information is correct, you have other options.

Second-chance banking programs are designed for people with banking history problems. Banks like Chime, LendingClub, and some regional banks offer these accounts with lower fees and no ChexSystems check. Credit unions also tend to be more flexible than large banks and may open an account even with a ChexSystems flag, especially if you are a member of the community they serve. Some credit unions require membership (which might mean living in a certain area or working for a certain employer), but many are open to anyone.

If you cannot open a traditional account, a prepaid card or secured account is another path. These do not require a ChexSystems check and let you load money onto a card or account. Fees are usually higher, but you can use the account to build a banking history and move to a traditional account later.

What happens after you open the account

Once your account is open, you can deposit money when ready. If you opened online, you can transfer money from another bank account or deposit a check through the mobile app (using mobile check deposit). If you opened in a branch, you can deposit cash or a check right there. Direct deposit of your paycheck usually takes one to two pay periods to set up — you give your employer your routing number and account number, and the bank deposits your pay automatically.

Your debit card arrives by mail within 5 to 10 business days. Some banks let you use a temporary digital card in the app while you wait. You can also request a checkbook, set up bill pay, and link the account to other services like PayPal or Venmo. Most banks let you do all of this through their mobile app or website.

Frequently Asked Questions

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

Some banks and credit unions will open an account using an Individual Taxpayer Identification Number (ITIN) instead. Call ahead to ask, because not all institutions offer this. Credit unions are often more flexible than large banks on this requirement.

How long does it take to get my debit card after I open an account?

Most banks mail debit cards within 5 to 10 business days. Many banks now offer a temporary digital card in their app that you can use when ready for online purchases and contactless payments while you wait for the physical card.

What if I do not have a proof of address document?

A lease, landlord letter, or recent government mail (tax return, benefits notice) works. Some banks accept a cell phone bill or utility bill in a family member's name if you can show you live there. Call the bank before you explore to ask what they will accept in your situation.

Can I open an account if I have been denied before?

Yes. If you were denied because of ChexSystems, dispute any errors on your report and try a credit union or second-chance banking program. If you were denied for another reason, ask the bank what changed — you may be able to open an account now if the issue has been resolved.

Do I have to use the bank's ATM, or can I use any ATM?

This depends on the bank. Most banks let you use ATMs in their network for free and charge a fee (usually $2 to $3) for out-of-network ATMs. Some banks reimburse out-of-network fees. Ask about this when you open the account, especially if you do not live near a branch.