What you need to open a savings account

Most banks and credit unions will ask for a government-issued photo ID, proof of your current address, and your Social Security number. A driver's license or passport covers the ID requirement. For address proof, bring a recent utility bill, lease, or mortgage statement — something dated within the last 60 days. You will also need to decide how much money to deposit to open the account, though many institutions have no minimum.

Some banks ask for additional information depending on where you live or what type of account you want. A few credit unions require you to join the organization before opening an account, which usually means paying a small membership fee (often $5 to $25) and meeting certain criteria — working in a particular field, living in a specific area, or being related to a current member. Online banks typically have lower or no membership requirements but may ask you to verify your identity through a video call or by uploading photos of your documents.

If you do not have a government ID, some banks will accept a state ID card, passport card, or tribal ID. If you have no ID at all, call ahead — a few institutions will work with you using alternative documents, though the process takes longer. If you do not have a Social Security number, you can use an Individual Taxpayer Identification Number (ITIN) instead.

Key Takeaways

  • You will need a photo ID, proof of address dated within 60 days, and your Social Security number or ITIN to open most savings accounts.
  • Many banks have no minimum deposit requirement, so you can open an account with as little as $1 and add money later.
  • Credit unions often require membership before you can open an account, which may involve a small fee and meeting membership criteria.
  • Online banks typically have simpler requirements than brick-and-mortar branches but may ask you to verify your identity through video or document upload.
  • If you lack a traditional government ID, call the bank first — some will accept alternative documents or an ITIN instead of a Social Security number.

Where to open an account: banks versus credit unions versus online

A traditional bank branch lets you deposit cash, speak to someone in person, and withdraw money at any ATM in their network. You pay for this convenience through lower interest rates on savings and monthly fees if you do not maintain a minimum balance. Most large banks (Chase, Bank of America, Wells Fargo, Citibank) charge $5 to $15 per month if your balance falls below a set amount, though some waive the fee if you set up direct deposit or keep a linked checking account.

Credit unions are member-owned cooperatives that typically offer higher interest rates on savings and lower fees than banks. You must be a member to open an account, but membership is often free or costs $5 to $25 one time. Credit unions are smaller and have fewer ATMs, so they work best if you live near a branch or if the credit union is part of a shared branching network (which lets you use ATMs at other credit unions). Examples include Navy Federal Credit Union, Alliant Credit Union, and local community credit unions.

Online banks (Ally, Marcus, Discover, Vanguard) have no physical branches but offer the highest interest rates because they have lower overhead costs. You cannot deposit cash in person, so you will need to transfer money from another bank account or set up direct deposit from your employer. Online banks have no monthly fees and no minimum balance requirements. The trade-off is that everything happens by phone, email, or app — there is no one to speak to face-to-face.

The step-by-step process for opening an account

At a bank branch, walk in with your documents, ask to open a savings account, and tell the employee what type of account you want (basic savings, high-yield savings, or money market account). They will verify your identity, run a background check through ChexSystems (a banking history database), and ask you to sign paperwork. The whole process takes 15 to 30 minutes. You will receive a debit card on the spot or by mail within a week, and your account number immediately so you can start depositing money.

At a credit union, the process is similar but you may need to complete a membership application first. Some credit unions let you join online; others require you to visit in person. Once you are a member, opening the savings account takes another 15 to 30 minutes. You will get an account number right away and a debit card by mail.

Online, you can open an account entirely on your phone or computer. You will upload photos of your ID and proof of address, answer security questions, and verify your identity — sometimes through a video call with a representative. The whole process takes 10 to 20 minutes. Your account opens immediately, but you cannot deposit cash, so you will need to transfer money from another bank or set up direct deposit from your paycheck.

What happens after you open the account

Once your account is open, you will receive a welcome packet with your account number, routing number, and information about how to deposit money. If you chose a bank branch, you can deposit cash at any teller or ATM. If you chose an online bank, you can only deposit by transferring money from another account (using the routing and account numbers) or by setting up direct deposit with your employer.

Your first statement will arrive 30 to 45 days after opening. It will show your opening balance, any deposits or withdrawals, and the interest you earned. Interest rates vary widely — online banks currently pay higher rates than brick-and-mortar banks, but rates change monthly. Check your bank's website or call to see the current rate before you deposit a large sum.

You can close the account anytime by calling the bank or visiting a branch. Most banks do not charge a fee to close, but some charge a small fee if you close within a certain period (often 90 days). Before you close, make sure you have withdrawn all your money or transferred it elsewhere.

Background checks and why banks run them

When you open an account, the bank will check your history through ChexSystems, a database that tracks closed accounts, overdrafts, and fraud. If you have unpaid overdrafts from a previous bank, a history of bounced checks, or a fraud claim, you may be denied. Some banks are stricter than others — larger banks like Chase often deny applicants with ChexSystems records, while smaller banks and credit unions are more flexible.

If you are denied, ask the bank why. You have the right to know what is in your ChexSystems report. You can request a free copy from ChexSystems online or by mail and dispute any errors. If the denial is because of old unpaid overdrafts, you can sometimes resolve it by paying the bank what you owe, then reapplying after 30 to 60 days.

If you cannot open a traditional account, look for a second-chance bank account. These are designed for people with ChexSystems records and usually have higher fees but no background check. Examples include Chime, LendingClub, and some credit unions. These accounts work the same way as regular savings accounts but may have monthly fees of $5 to $15.

Comparing interest rates and fees across institutions

Interest rates on savings accounts vary by institution and change weekly. Online banks currently pay between 4% and 5% annual percentage yield (APY), while traditional banks pay between 0.01% and 0.5%. The difference matters: on $10,000, you would earn roughly $400 to $500 per year at an online bank versus $1 to $50 at a traditional bank. Check the current rates on the bank's website before you open — do not rely on rates from articles or comparison sites, as they change constantly.

Fees also vary. Traditional banks charge monthly maintenance fees ($5 to $15) if you do not meet a minimum balance, overdraft fees ($25 to $35 per overdraft), and ATM fees ($2 to $3) if you use an out-of-network ATM. Credit unions usually charge lower fees or none at all. Online banks charge no monthly fees and no overdraft fees (they simply decline the transaction instead). Compare the total cost: a bank with a 0.5% interest rate and a $10 monthly fee may cost you more than an online bank with a 4.5% rate and no fees.

Frequently Asked Questions

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

Yes. If you have an Individual Taxpayer Identification Number (ITIN), most banks will accept it instead. If you have neither, call ahead — some credit unions and online banks will work with you using alternative documents like a passport or state ID, though the process may take longer.

What is the minimum amount I need to deposit to open an account?

Many banks have no minimum deposit requirement, so you can open an account with $1 and add money later. Some banks require $25 to $100 to open. Check the bank's website or call before you visit to confirm their minimum.

How long does it take to open a savings account?

At a bank branch or credit union, the process takes 15 to 30 minutes. Online, it takes 10 to 20 minutes. Your account opens immediately, though a debit card may arrive by mail within a week.

Can I open a savings account if I have been denied before?

If you were denied because of a ChexSystems record, you can request a free copy of your report, dispute any errors, and try again at a different bank. Credit unions and second-chance banks are often more flexible. If you owed money to the previous bank, paying what you owe and waiting 30 to 60 days before reapplying improves your chances.

Do I need a checking account to open a savings account?

No. You can open a savings account on its own. However, some banks offer lower fees or higher interest rates if you also have a checking account with them, so compare the total cost before deciding.