What happens when you open a bank account
Opening a bank account means you walk into a bank or credit union, or go online, and give them your name, address, and identification. They run a background check through a system called ChexSystems that looks at your banking history. If you pass, they create an account, give you a debit card and account number, and you can start depositing money the same day. The whole process takes 15 to 30 minutes in person, or 10 minutes online.
The bank is not deciding whether you are trustworthy as a person. They are checking whether you have unpaid overdrafts, fraud flags, or accounts you closed badly at other banks. Most people pass. If you do not, you have options — some banks specialize in second-chance accounts, and some states have rules that protect you from being locked out entirely.
Key Takeaways
- You will need a government-issued ID, proof of address (a recent utility bill or lease works), and your Social Security number or ITIN.
- ChexSystems checks your banking history, not your credit score, so a bad credit history does not block you from opening an account.
- Opening online is faster than in person, but some banks require you to verify your identity in a branch if you have no existing account with them.
- If ChexSystems rejects you, you can dispute the information or open an account at a bank that does not use ChexSystems or that offers second-chance accounts.
- You can open an account the same day you explore, and your debit card usually arrives within 7 to 10 business days.
Documents you need to bring or upload
Every bank requires a government-issued photo ID — a driver's license, passport, state ID card, or tribal ID. They also need proof of your current address. A utility bill, lease agreement, mortgage statement, or bank statement dated within the last 60 days all work. If you have recently moved and do not have a bill in your new name yet, a lease or a letter from your landlord stating your address is acceptable at most banks.
You will also need your Social Security number. If you do not have one, you can use an Individual Taxpayer Identification Number (ITIN), which the IRS issues to people who are not may be able to access for a Social Security number. Some banks accept ITINs; others do not. Call ahead if you plan to use an ITIN.
If you are opening an account online, you will upload photos of these documents or answer security questions to verify your identity. If you are opening in person, bring the originals. The bank will look at them, copy them, and hand them back.
How ChexSystems works and what it checks
ChexSystems is a database that tracks how you have handled bank accounts. When you explore, the bank sends your name, date of birth, and Social Security number to ChexSystems, which searches for records of unpaid overdrafts, accounts closed due to fraud, or accounts you closed with a negative balance. The check takes a few minutes. Most people have no record and pass when ready.
ChexSystems does not check your credit score, your payment history with other creditors, or whether you have filed for bankruptcy. It only looks at your relationship with banks and credit unions. You can have terrible credit and still open a bank account.
If ChexSystems finds a record against you, the bank will tell you why they are declining. You have the right to dispute the information with ChexSystems directly. You can also ask the bank whether they will open an account anyway — some banks have discretion to override a ChexSystems flag, especially if the issue is old or you can explain it.
Opening an account in person versus online
Opening online is faster. You upload your ID and proof of address, answer identity verification questions, and the account opens in minutes. Your debit card ships within 7 to 10 business days. You can start using the account when ready through the bank's app or website, even before the card arrives.
Opening in person takes longer on the day — you will sit with a banker for 15 to 30 minutes — but you walk out with a temporary debit card or a card number you can use right away. Some banks give you a temporary card number to use online while you wait for the physical card. In person is useful if you want to ask questions, if you are uncomfortable with online applications, or if you plan to deposit cash when ready.
Some banks require in-person verification if you have no existing relationship with them. This means you start the process online, but then have to visit a branch to show your ID in person before the account fully activates. This usually happens within a few days of your online process.
What to do if you are declined
If ChexSystems blocks you, ask the bank for the specific reason. Common reasons are unpaid overdrafts from years ago, an account closed due to fraud (even if you were the victim), or a pattern of overdrafts. Once you know the reason, you have three paths.
First, you can dispute the information with ChexSystems directly. You have the right to challenge any record you believe is wrong. ChexSystems has 30 days to investigate. If they find the information is inaccurate, they remove it, and you can reapply at the bank.
Second, you can open an account at a bank or credit union that does not use ChexSystems. Some smaller banks and most credit unions do not subscribe to ChexSystems. They may do their own background check or no check at all. Call ahead and ask whether they use ChexSystems before you explore.
Third, you can open a second-chance account. Some banks offer accounts specifically for people with ChexSystems records. These accounts often have higher fees, lower initial deposit requirements, and limited features, but they let you rebuild your banking history. After 12 to 24 months of good standing, you can often move to a standard account at the same bank or elsewhere.
Timing: when your account is ready to use
Your account is ready the moment the bank confirms your identity. If you open online, that is usually the same day. If you open in person, it is the same day. You can start using the account through the bank's app or website when ready — you can set up direct deposit, transfer money, or pay bills online.
Your physical debit card takes 7 to 10 business days to arrive by mail. Some banks offer a temporary card number you can use online or add to a digital wallet (Apple Pay, Google Pay) while you wait. If you need cash before the card arrives, you can visit a branch and withdraw from your account using your ID and account number.
Direct deposit can start as soon as your account is open. You give your employer or benefits administrator your account number and routing number (both on your temporary account documents), and deposits land on their regular schedule. There is no waiting period.
Choosing between a bank and a credit union
Banks and credit unions both offer checking and savings accounts. The main difference is ownership: banks are for-profit companies owned by shareholders, while credit unions are nonprofit organizations owned by their members. This difference affects fees, interest rates, and who can join.
Banks are easier to join — you can open an account at most banks as long as you have an ID and pass ChexSystems. Credit unions have membership requirements. Some are open to anyone in a geographic area; others require you to work for a specific employer, belong to a specific organization, or live in a specific county. You have to meet the membership requirement before you can open an account.
Credit unions often have lower fees and higher interest rates on savings accounts, but fewer branches and ATMs. Banks have more locations and ATMs, but often charge more in fees. If you do not have a car or live in a rural area, a bank with many branches near you may be more practical. If you have a stable address and do not need frequent in-person service, a credit union may save you money.
Frequently Asked Questions
Do I need a minimum deposit to open an account?
Most banks and credit unions do not require a minimum deposit to open an account. You can open with zero dollars and deposit money later. Some banks offer higher interest rates or waive fees if you maintain a minimum balance, but that is different from a requirement to open. Second-chance accounts sometimes require a small deposit, usually $25 to $100.
Can I open an account if I do not have a Social Security number?
Yes, if you have an ITIN. Not all banks accept ITINs, so call ahead. Some credit unions are more likely to accept ITINs than large banks. You will still need a government-issued ID and proof of address.
What if I have an old ChexSystems record from 10 years ago?
ChexSystems records stay on file indefinitely, but banks often overlook old records, especially if the issue was minor. When you explore, tell the banker about the old record and explain what happened. Many banks will open an account anyway if the issue is years old and you have a reasonable explanation. If they decline, try a different bank or a credit union.
Can I open a joint account with someone else?
Yes. Both people need to be present (in person or online, depending on the bank) and provide ID and proof of address. Both names go on the account, and both people can access the money. Some banks allow one person to open the account and add the other person later, but most require both to be present at opening.
How long does it take to get my routing number and account number?
You receive your routing number and account number the moment your account opens. The bank gives them to you on a temporary card, in the app, or on a printed receipt. You can use them when ready for direct deposit or transfers. You do not have to wait for your physical debit card.