How to Open a Savings or Checking Account in the United States

Opening a bank account in the U.S. requires proper identification and documentation, can often be done online or in person, and involves choosing an institution and account type that fits your financial needs.

U.S. Banking System Overview for Newcomers

The U.S. financial system includes national banks, state-chartered banks, community banks, and credit unions. Accounts are protected by federal deposit insurance (FDIC for banks, NCUA for credit unions) up to $250,000 per depositor, per institution.

Institution Type Key Characteristics Deposit Insurance Typical Customer Focus
National Bank Operates in multiple states, large ATM networks, extensive online services. FDIC National reach, tech-savvy users.
Community Bank / Local Bank Operates in a specific region, personalized service, local decision-making. FDIC Local residents and businesses.
Credit Union Not-for-profit, member-owned, often lower fees and better rates. NCUA Members meeting specific criteria (location, employer, etc.).
Online-Only Bank No physical branches, higher interest rates, low fees. FDIC Comfortable with digital banking, seeking high yield.

Important Security Note

Ensure the bank or credit union you choose is insured by the FDIC or NCUA. This protects your money if the institution fails. You can verify this on the institution's website or by asking a representative.

Choosing a Bank or Credit Union

Compare Your Options

Don't just choose the most familiar name. Research and compare accounts based on fees, minimum balances, branch/ATM convenience, digital tools, and customer service ratings.

Credit Union Membership

You must be eligible to join a credit union. Check their "field of membership," which can be based on your employer, geographic location, or membership in an association.

Types of Accounts: Checking vs. Savings

Account Type Primary Purpose Transaction Limits Interest Earnings Common Features
Checking Account Daily spending and bill payments. Unlimited withdrawals/deposits. Usually none or very low. Debit card, checks, online bill pay.
Savings Account Saving money for goals. Limited to 6 convenient withdrawals per month. Yes, earns interest. Linked to checking for overdraft protection.
Money Market Account Hybrid; saving with some checking features. Limited transactions (may include check-writing). Typically higher than savings. May require higher minimum balance.

Many banks offer bundled packages. You can often open a checking and savings account simultaneously to manage your finances efficiently.

Required Documentation and Eligibility

Mandatory Identification

You must present one or two forms of government-issued ID. A U.S. driver's license, state ID card, or passport are most common. A foreign passport is acceptable for non-citizens.

Social Security Number (SSN) or ITIN

Banks are required by law to ask for your SSN or Individual Taxpayer Identification Number (ITIN) for tax reporting purposes. If you don't have one, some banks will accept other forms of ID, but your options may be limited.

Proof of U.S. Address

You need to prove you live where you say you do. Acceptable documents include a utility bill, lease agreement, mortgage statement, or a driver's license with your current address.

The Application Process: Online vs. In-Person

Online Application

You can complete the application on the bank's website or mobile app. You will need to electronically submit images of your ID and other documents. An initial deposit is usually made via a transfer from another account.

In-Person Application

Visit a local branch with your original documents. A banker will assist you with the forms, verify your identity on the spot, and can accept your opening deposit in cash or by check.

Understanding Fees and Minimum Balances

Fee Type What It Is Typical Cost How to Avoid It
Monthly Maintenance Fee A charge for keeping the account open. $5 - $15 Maintain minimum daily balance, have direct deposit, or use student accounts.
Overdraft Fee Charged when you spend more than your account balance. ~$35 per transaction Opt out of overdraft protection, link to a savings account, or monitor your balance closely.
Out-of-Network ATM Fee Charged by your bank AND the ATM owner for using a non-affiliated ATM. $2 - $5+ (combined) Use your bank's in-network ATMs or get cash back at point-of-sale.
Minimum Balance Fee Charged if your balance falls below a required amount. Similar to monthly fee Keep your account balance above the stated minimum.

Read the Fee Schedule

By federal regulation (Truth in Savings Act), banks must provide a fee schedule before you open an account. Review it carefully to understand all potential charges. Penalties for violations of account terms may include substantial fines.

Steps After Opening Your Account

Make Your First Deposit

Fund your account via cash, check, electronic transfer, or mobile check deposit to activate it.

Set Up Online Banking

Register for online and mobile banking to monitor your balance, transfer funds, and pay bills.

Order Checks and Debit Cards

These may be ordered during account opening and will be mailed to your address on file.

Options for Non-U.S. Residents

Major Bank Programs

Some large international banks have programs for newcomers, students, or temporary workers. They may accept foreign IDs and passports more readily.

ITIN as an Alternative

If you are ineligible for an SSN, apply for an ITIN from the IRS. Many banks accept ITINs to open accounts.

Always call the bank's customer service for non-residents before visiting to confirm their specific document requirements, as policies can change and vary by branch.

Bank Account Opening Preparation Checklist

Before You Apply

  1. Research and compare 2-3 banks or credit unions.
  2. Check eligibility requirements (especially for credit unions).
  3. Decide on the type of account(s) you need (Checking, Savings, or both).

Gather Your Documents

  1. Primary Photo ID (Passport, Driver's License, State ID).
  2. Secondary ID (if required, e.g., another form of ID or student card).
  3. Social Security Number (SSN) or ITIN.
  4. Proof of U.S. Address (Utility bill, lease agreement).

For the Application

  1. Have funds ready for the minimum opening deposit.
  2. Know your personal details (date of birth, citizenship status, employment info).
  3. Choose whether to apply online or in-person.

Frequently Asked Questions (FAQ)

What documents do I need to open a bank account in the U.S.?

A. You typically need a government-issued photo ID (like a passport, driver's license, or state ID), your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), and proof of your U.S. address (such as a utility bill or rental agreement).

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

A. Yes, some banks allow you to open an account using an Individual Taxpayer Identification Number (ITIN) instead of an SSN, or with other forms of identification like a passport and proof of address. Policies vary by bank, so call ahead to confirm.

What is the difference between a checking and a savings account?

A. A checking account is designed for frequent transactions like paying bills and making purchases with a debit card or checks. A savings account is for storing money you don't need immediately, and it usually earns interest. There are often limits on the number of withdrawals you can make from a savings account each month.

Is there a minimum deposit required to open an account?

A. Minimum deposit requirements vary. Many basic accounts have low or no minimum opening deposit, while some accounts with premium features may require $25, $50, $100, or more.

Can I open an account online or do I need to visit a branch?

A. Many banks and credit unions allow you to open an account entirely online. You may need to provide electronic copies of your ID and other documents. Some institutions, however, may require an in-person visit to verify identity, especially for non-residents.

What are common bank account fees I should be aware of?

A. Common fees include monthly maintenance fees, overdraft fees, ATM fees for using out-of-network machines, and minimum balance fees. Many banks waive the monthly fee if you meet certain conditions, like maintaining a minimum balance or setting up direct deposit.

What is a credit union and how is it different from a bank?

A. A credit union is a not-for-profit financial cooperative owned by its members. They often offer lower fees and better interest rates than traditional banks. To join a credit union, you must meet its field of membership criteria (e.g., based on your location, employer, or membership in an association).

How do I choose the right bank or account for me?

A. Consider factors like fees (and how to avoid them), branch and ATM locations near you, online and mobile banking features, customer service reviews, minimum balance requirements, and interest rates for savings accounts.

Official U.S. Banking Resources

  • Federal Deposit Insurance Corporation (FDIC): www.fdic.gov - Bank finder and deposit insurance information.
  • National Credit Union Administration (NCUA): www.ncua.gov - Credit union locator and insurance information.
  • Consumer Financial Protection Bureau (CFPB): www.consumerfinance.gov - Guides on bank accounts and handling financial issues.
  • Internal Revenue Service (IRS): ITIN Information - How to apply for an Individual Taxpayer Identification Number.

Disclaimer

This guide is for informational purposes only and does not constitute legal, financial, or professional advice. Banking regulations, fees, and requirements change frequently and vary by state and financial institution. You must confirm all details directly with your chosen bank or credit union before opening an account. The author and publisher are not liable for any decisions made based on this information. Reference to specific legal statutes, such as the Truth in Savings Act (12 U.S.C. § 4301 et seq.) and federal deposit insurance rules, is for contextual understanding only.