MonitorBankRates
iAdvertiser Disclosure
Advertiser DisclosureSome institutions may have a business relationship with MonitorBankRates. Advertiser relationships do not influence our ratings or the rates shown.

How to Open a Bank or Credit Union Account: Step-by-Step Guide

Opening a checking or savings account is faster than it has ever been. Most banks and credit unions let you apply online in 5 to 10 minutes with no branch visit required. You will need a government-issued ID, a Social Security number or ITIN, and typically $25 to $100 for an opening deposit — though many online banks and credit unions require no minimum at all.

The more consequential decision is choosing the right institution. Banks and credit unions differ in fees, rates, ATM access, and digital features in ways that will affect you every month. This guide covers exactly what you need to open an account and what to compare before you do.

Time to Open5–10 minutes online
ID RequiredSSN/ITIN + photo ID
Opening Deposit$0–$100 at most institutions
InsuranceFDIC (banks) / NCUA (credit unions)

What You Need to Open a Bank Account

Whether you are opening online or in person, every bank and credit union requires you to verify your identity. Have the following ready before you start:

  • Government-issued photo ID: U.S. driver's license, state ID, U.S. passport, or military ID. Most online applications let you photograph or upload it from your phone.
  • Social Security number (SSN) or ITIN: Required for tax reporting. If you do not have a SSN, many institutions accept an Individual Taxpayer Identification Number (ITIN) instead. See the section below on alternatives for non-SSN applicants.
  • Current address: Must match what is on your ID or be verifiable through a utility bill, bank statement, or lease.
  • Date of birth: Must be 18 or older for a standard account; minors can typically open a joint account with a parent or guardian.
  • Email address and phone number: Required for online applications and for two-factor authentication.
  • Opening deposit funding source: A debit card, existing bank account for an ACH transfer, or a check to mail or photograph for mobile deposit. Some institutions also accept cash at a branch.

Step-by-Step: Opening an Account Online

1

Compare and choose an institution

Before applying, compare monthly fees, minimum balance requirements, ATM network size, overdraft policy, and interest rates. Our checking account rate tables let you filter by institution type and state. For students, student checking accounts typically have no fees and no minimum balance requirements. For businesses, see business checking accounts.

2

Go to the bank’s website or app and click “Open an Account”

Most institutions have a direct application link on their homepage. Avoid applying through third-party comparison sites that may pre-fill your data before sending you to the bank — apply directly to ensure your information goes straight to the institution.

3

Enter your personal information

Provide your legal name, date of birth, SSN or ITIN, current address, phone number, and email. Most applications take 3 to 5 minutes to complete. Your application triggers a ChexSystems or Early Warning Services (EWS) inquiry rather than a hard credit pull — this does not affect your credit score.

4

Upload or photograph your ID

Online applications typically ask you to photograph the front and back of your ID through your phone camera. Ensure the image is clear and all text is readable. Some banks also require a selfie for identity verification.

5

Fund the account

Provide a debit card number or link an existing bank account via routing and account number to make your opening deposit. Some institutions accept $0 to open and let you fund the account later. Others require $25 to $100 at application. Your debit card for the new account typically arrives within 5 to 10 business days.

6

Set up direct deposit and account alerts

Once the account is open, update your employer's payroll portal with your new routing and account number. Set up low-balance alerts immediately — this is the single most effective step for avoiding overdraft fees in the first weeks with a new account.

Opening an Account Without a Social Security Number

Many banks and credit unions accept alternative forms of identification for applicants who do not have a Social Security number. Acceptable alternatives typically include:

  • Individual Taxpayer Identification Number (ITIN): Issued by the IRS for tax purposes; accepted by most banks in place of an SSN
  • Foreign passport with country of issuance
  • Alien Identification Card (Green Card)
  • Matricula Consular card: Issued by Mexican consulates; accepted by many banks and credit unions, especially in areas with large immigrant populations
  • Other government-issued identification where accepted by the institution

Requirements vary by institution. Call or chat with the bank or credit union before applying to confirm what forms of ID they accept. Credit unions are often more flexible than large national banks on ID requirements and may serve specific communities or regions with tailored account options.

Bank vs. Credit Union: How to Choose

FeatureBankCredit Union
OwnershipFor-profit, owned by shareholdersNot-for-profit, owned by members
FeesTypically higher at traditional banks; lower at online banksGenerally lower; many charge no monthly fee
Checking ratesVariable; highest at online banksOften competitive; member-focused
ATM accessVaries; large national banks have wide networksShared CO-OP network gives access to 30,000+ ATMs
Branch accessBetter for national banksTypically local or regional
Digital toolsOften more advanced at large banks and online banksVaries; improving rapidly
InsuranceFDIC up to $250,000NCUA up to $250,000
Who can joinAnyoneMust meet membership criteria (employer, geography, etc.)

Credit Unions Often Beat Banks on Fees and Rates: Because credit unions return profits to members rather than shareholders, they consistently offer lower overdraft fees, better savings rates, and fewer nuisance fees than traditional banks. The main drawback is membership eligibility — but most people qualify for at least one credit union through their employer, location, alumni association, or family. Check our credit union checking account rates to see what is available.

Should You Open a Checking or Savings Account First?

If you are opening your first bank account, start with a checking account. It is the foundation of day-to-day financial life — direct deposit, bill pay, debit card purchases, and ATM access all run through checking. Once your checking account is set up and funded, add a savings account and automate a fixed transfer from checking to savings each month.

A high-yield checking account earns interest on your balance while giving you full transaction access — the best of both worlds if you maintain an average balance above the rate-earning threshold. Compare both checking rates and savings rates before deciding where to keep your primary account.

Frequently Asked Questions

What do you need to open a bank account?
You typically need a government-issued photo ID (driver's license, passport, or state ID), a Social Security number or ITIN, your current address, date of birth, email address, and funding for an opening deposit. Online applications usually take 5 to 10 minutes and let you photograph your ID from your phone.
Can I open a bank account online?
Yes. Most banks and credit unions let you open a checking or savings account entirely online in 5 to 10 minutes. You will provide your personal information, photograph or upload your ID, and fund the account via debit card or ACH transfer. Online banks typically offer lower fees and better rates than traditional branches.
How much money do you need to open a checking account?
Most banks require an opening deposit of $25 to $100. Many online banks and credit unions require $0. Separate from the opening deposit, some accounts also have ongoing minimum balance requirements to waive a monthly fee � these can range from $0 to $1,500 or more at traditional banks. Always check both requirements before applying.
What is the difference between a bank and a credit union?
Banks are for-profit institutions owned by shareholders. Credit unions are not-for-profit cooperatives owned by their members, typically offering lower fees and better rates. Both provide FDIC or NCUA insurance up to $250,000. Credit unions require membership eligibility; banks are open to anyone. Both offer checking accounts, savings accounts, and most standard banking products.
Can I open a bank account without a Social Security number?
Yes. Many banks accept an ITIN, foreign passport, alien identification card, or Matricula Consular card in place of a Social Security number. Requirements vary by institution. Call ahead to confirm what forms of ID are accepted before applying, especially at smaller community banks and credit unions.