How to Open a Bank Account

Opening a bank account is far simpler than most people expect, and the process is broadly the same no matter which bank or credit union you choose. A bank is a for-profit company, while a credit union is a not-for-profit owned by its members, but from your side of the counter both offer the same basic thing: a safe place to keep your money that also lets you receive deposits, pay bills, and access cash. This lesson describes the general process; it is intentionally not tied to any specific institution, because the steps travel with you wherever you decide to bank.

Before you start, it helps to gather a few pieces of information the institution is legally required to collect. In the United States, banks must verify your identity under 'Know Your Customer' rules, so you will typically need a government-issued photo ID (such as a driver's license, state ID, or passport), your Social Security number or Individual Taxpayer Identification Number, and proof of your address, such as a utility bill or lease. You will also want a small amount of money for the opening deposit — some accounts require as little as $25, and many now require nothing at all.

If you are under 18, you generally cannot open an account entirely on your own. Instead you open a joint or custodial account with a parent or guardian, who is listed alongside you. This is normal and temporary; the account can usually convert to a solo account once you reach adulthood. Many banks and credit unions offer accounts designed specifically for teens and students, often with no monthly fee, which makes them a good first stop.

The actual sign-up can happen in one of two ways. You can walk into a branch and a representative will guide you through it in person, which is helpful if you have questions or want a human to explain the paperwork. Or you can open the account online in about fifteen minutes by filling out a form, uploading photos of your ID, and confirming your identity. Either way, you will read and agree to the account terms — the document that spells out the fees, minimum balances, and rules — and it is worth actually skimming this rather than clicking past it, because it tells you how to avoid charges later.

Once the account is open, you will set up the tools that make it useful: a debit card for purchases and ATM withdrawals, online and mobile banking so you can check your balance and move money, and often a linked savings account. A few smart first moves are to set up direct deposit so your paycheck lands automatically, turn on balance and transaction alerts so you notice anything unusual, and record your account and routing numbers somewhere secure since you will need them to receive payments and set up automatic bills.

It is worth knowing that a checking or savings account is different from a credit product. Opening a standard deposit account does not involve borrowing money and usually does not affect your credit score, though the bank may run a soft check through a service like ChexSystems to see whether you have mishandled accounts in the past. If you have never had an account before, you have a clean slate — the main thing that matters is choosing an account with fees you can avoid and then using it responsibly.