What you need to do right now

Opening a savings account takes about 15 to 30 minutes and requires three things: a government-issued ID, proof of your address, and an initial deposit (usually $25 to $100, though some banks ask for nothing). You can walk into a branch, call, or do it online depending on the bank. The bank will ask for your Social Security number or Individual Taxpayer Identification Number (ITIN), verify your identity, and then you'll have an account number and a debit card within a few days.

The hardest part is usually choosing which bank, not the paperwork itself. Different banks offer different interest rates on savings, different monthly fees, and different ways to access your money. This guide walks you through each step so you know what to expect and what questions to ask.

Key Takeaways

  • You need a government ID, proof of address, and an opening deposit to start a savings account at most banks.
  • Online banks often pay higher interest on savings but have no physical branches, while traditional banks have branches but may charge monthly fees.
  • Your Social Security number or ITIN is required so the bank can report interest you earn to the IRS and check your banking history.
  • After you open the account, money you deposit is insured up to $250,000 by the FDIC, which means the federal government protects it if the bank fails.
  • You can open an account in person, by phone, or online, and the process usually takes 15 to 30 minutes plus a few days for your card to arrive.

Gather your documents before you go

Banks are required by federal law to verify who you are before opening an account. This is called Know Your Customer (KYC) verification, and it protects both you and the bank from fraud. You will need to bring or upload three things.

First, a government-issued photo ID: a driver's license, state ID card, passport, or military ID. Second, proof that you live where you say you do. This can be a recent utility bill, lease, mortgage statement, or government mail with your name and address — usually dated within the last 60 days. Third, your Social Security number or ITIN. If you don't have a Social Security number, you can use an ITIN, which the IRS issues to people who don't may have access to for a Social Security number but need to file taxes or open a bank account.

Some banks also ask for a second form of ID or additional address proof if your documents don't match perfectly. Call ahead or check the bank's website to see what they specifically want. This saves a trip if you're going in person.

Decide between online banks and traditional banks

An online bank exists only on the internet — no physical locations, no tellers, no branch visits. You open the account on their website, deposit money by transferring it from another bank account, and manage everything through an app or website. Online banks usually pay higher interest on savings because they have lower costs than traditional banks. The catch is that you can't walk in with cash or talk to someone face-to-face.

A traditional bank has physical branches where you can deposit cash, speak to a teller, and get help in person. Many traditional banks also let you open an account online. The trade-off is that they often pay lower interest on savings and may charge a monthly fee if your balance drops below a certain amount — sometimes $500, sometimes $1,500, depending on the bank.

If you're new to banking and want to ask questions in person, a traditional bank or credit union might feel more comfortable. If you want the highest interest rate and don't mind managing your account online, an online bank is usually the better choice. Some people use both: a traditional bank for everyday deposits and a traditional bank for savings that earns more interest.

Understand what the bank will ask you

When you open an account — whether online, by phone, or in person — the bank will ask you a series of questions. They'll ask your full legal name, date of birth, Social Security number or ITIN, current address, phone number, and email. They'll ask your employment status and whether you're opening the account for yourself or on behalf of someone else. Some banks ask why you're opening the account, though this is optional information.

The bank will also run a check on your banking history through a system called ChexSystems. This is similar to a credit report but for bank accounts. It shows whether you've had accounts closed for negative reasons, written bad checks, or had disputes with other banks. A ChexSystems report doesn't affect your credit score. If you've had problems with banks in the past, some banks will still open an account for you, though they may require a higher opening deposit or restrict certain features.

Be honest in your answers. The bank is required to verify the information you give, and lying on a bank process is a federal crime, though it's rarely prosecuted for small accounts.

Make your opening deposit

Most banks require an opening deposit of $25 to $100, though some require nothing. This money goes directly into your new savings account. You can deposit it in several ways depending on how you're opening the account.

If you're opening the account in person at a branch, you can hand the teller cash or a check. If you're opening online or by phone, you'll transfer money from another bank account you already have — a checking account at another bank, for example. The bank will ask for the routing number and account number of the account you're transferring from. This usually takes one to three business days to complete.

Some online banks let you skip the opening deposit entirely and start with $0. Others waive the opening deposit if you set up a direct deposit from your employer. Check the specific bank's requirements before you start.

Complete the process and get your card

Once you've provided all your information and made your opening deposit, the bank will give you an account number when ready (or within minutes if you're online). You can start using your account right away to receive deposits or transfers. However, your physical debit card — the card you use to withdraw cash from ATMs or make purchases — usually arrives in the mail within 5 to 10 business days.

Until your card arrives, you can still access your money. You can transfer it to another account, set up a direct deposit from your employer, or go to a branch and ask a teller to withdraw cash for you. Some banks also let you use a temporary digital card in their app before your physical card arrives.

When your card does arrive, it will come with a PIN (personal identification number) that you'll use at ATMs. You can change this PIN to something you'll remember. Your account is now fully open and ready to use.

Know what happens after you open the account

After your account is open, the bank will send you statements — either by mail or email, depending on what you choose. These statements show every deposit, withdrawal, and interest payment. Keep these statements or read them from your online banking portal. They're proof of your account activity if you ever need them.

Your deposits are protected by the Federal Deposit Insurance Corporation (FDIC), a government agency. This means if the bank fails, the FDIC will return your money up to $250,000. This protection is automatic — you don't have to do anything to get it. If you have more than $250,000 in savings, only the first $250,000 is protected at each bank, so some people open accounts at multiple banks to protect larger amounts.

You'll also earn interest on your savings. The bank will pay you a small percentage of your balance each month or each quarter, depending on the account. This interest is added to your account automatically. At the end of the year, the bank will send you a form called a 1099-INT that shows how much interest you earned. You'll need this form when you file your taxes.

Frequently Asked Questions

Can I open a savings account if I don't have a Social Security number?

Yes. You can use an Individual Taxpayer Identification Number (ITIN) instead. The IRS issues ITINs to people who don't have a Social Security number but need to file taxes or open a bank account. You'll need to show your ITIN documentation along with your ID and proof of address, just as you would with a Social Security number.

What if I don't have a government ID?

Most banks require a government-issued photo ID to open an account. If you don't have one, you can get a state ID card from your state's DMV (Department of Motor Vehicles) without having a driver's license. Some banks may accept alternative documents like a passport or consular ID if you explain your situation, so call ahead and ask what they'll accept.

Do I need to have another bank account to open a savings account?

No. You can open a savings account as your first account. However, if you're opening an online bank account and want to make your opening deposit by transfer, you'll need another account to transfer from. If you don't have one, you can deposit cash at a branch of a traditional bank instead, or some online banks let you skip the opening deposit.

How much money do I need to keep in the account?

This depends on the bank. Some banks have no minimum balance requirement — you can keep $1 in the account and it stays open. Others require you to maintain a minimum balance, often $500 or $1,000, or you'll be charged a monthly fee. Check the bank's fee schedule before you open the account so you know what to expect.

Can someone else open a savings account for me?

No. You must open the account yourself because the bank needs to verify your identity in person or online. However, you can give someone power of attorney to manage the account after it's open, or you can add them as an authorized user so they can make deposits and withdrawals on your behalf.