Difficulty: Easy Time Required: 30–60 minutes
Opening a bank account is one of the most important financial steps you'll take as an adult. A bank account keeps your money safe, makes paying bills easier, helps you build a financial history, and gives you access to essential services like direct deposit and online payments. This guide walks you through opening your first checking or savings account, even if you've never had one before.
What You'll Need
Materials:
- Government-issued photo ID (driver's license, state ID, or passport)
- Social Security number or Individual Taxpayer Identification Number (ITIN)
- Proof of address (utility bill, lease, or official mail within last 90 days)
- Initial deposit (cash, check, or transfer from another account)
- Contact information (phone number and email address)
Prerequisites:
- Be at least 18 years old (or open a custodial account with a parent/guardian)
- U.S. address where you can receive mail
- 30–60 minutes to complete application and setup
- Basic understanding of checking vs. savings accounts
Step-by-Step Instructions
Step 1: Decide between checking and savings (or both)
Checking accounts are for everyday spending—paying bills, making purchases, withdrawing cash. They typically come with a debit card and check-writing ability. Savings accounts are for storing money you don't need immediately, earning interest, and building emergency funds.
Most people need both:
- Checking for daily use
- Savings for goals and emergencies
Step 2: Compare banks and credit unions
Research at least three options before choosing.
Traditional banks (Chase, Bank of America, Wells Fargo):
- Have physical branches
Online banks (Ally, Marcus, Discover):
- Offer higher interest rates
- Lower fees
- No physical locations
Credit unions:
- Member-owned
- Often have better rates
- Fewer locations
Compare the following features:
- Monthly fees
- Minimum balance requirements
- ATM access
- Interest rates
- Mobile app reviews
Step 3: Gather required documents
You'll need:
- Proof of identity (driver's license or passport)
- Social Security number or ITIN
- Proof of current address (recent utility bill, lease agreement, or government mail)
- Physical documents and photos/scans (for online or in-person applications)
If you don’t have all documents, call the bank first to discuss alternatives.
Step 4: Complete the application
Apply online (10–20 minutes) or in person (30–45 minutes)
Provide:
- Full legal name
- Date of birth
- Social Security number
- Current address
- Phone number
- Email address
Bank performs soft credit check or uses ChexSystems
Answer preferences for:
- Paper vs. digital statements
- Debit card
Step 5: Make your initial deposit
Most banks require an opening deposit:
Typically $25–100 for checking
Sometimes less for savings
Deposit methods:
- Cash at a branch
- Electronic transfer from another bank
- Check via mobile app
- Someone else deposits into your new account
Some online banks waive the deposit upfront but require it within a set number of days.
Step 6: Set up online and mobile banking
After account approval (immediate to 2 business days):
- Create online login
- Download bank’s mobile app
Set up security:
- Two-factor authentication
- Biometric login (fingerprint or face ID)
- Transaction alerts
Learn the interface:
- Check balance
- View transactions
- Transfer money
- Deposit checks
Step 7: Activate your debit card and set up direct deposit
Debit card arrives by mail in 7–10 business days
Activate via phone or mobile app
Create your PIN
Provide account and routing numbers to employer for direct deposit
Set up:
- Automatic bill payments
- Overdraft protection by linking checking to savings (optional)
Common Mistakes to Avoid
Not checking for monthly fees: Many banks charge $5–15/month unless you meet requirements (minimum balance, direct deposit, or minimum transactions). Read the fee schedule carefully. Online banks usually don’t charge fees.
Choosing a bank for convenience alone: Just because there's a nearby branch doesn't mean it’s the best choice. Physical branches often mean higher fees and lower interest. Consider if online banking covers your needs.
Ignoring overdraft settings: Overdraft protection lets transactions go through when you lack funds—but charges $25–35 per overdraft. Declining this means declined transactions but no fees. For most people, that's better.
Using out-of-network ATMs regularly: Non-bank ATMs cost $2–3 per withdrawal, plus $2–3 from the ATM owner—totaling $5–6. Choose banks with large ATM networks or reimbursement. Plan fewer, larger withdrawals.
Not understanding minimum balance requirements: Fee waivers often depend on minimum balances of $500–1,500. Dropping below even once can trigger fees. If you can’t maintain it, choose an account with no minimum.
Pro Tips
Start with online banks for better rates: Online banks like Ally, Marcus, Capital One 360, and Discover offer 4–5% interest on savings (vs. 0.01% at traditional banks), no fees, and better service. Only downside: no branches, which most people don’t need.
Open both accounts at the same bank: Makes transfers instant and free. Easily move money in the app. Some banks offer perks when you have both accounts.
Look for sign-up bonuses: Many banks offer $200–500 bonuses for meeting requirements (like direct deposit or card use). These are real and worthwhile if you can meet the terms.
Set up account alerts immediately: Enable text or email alerts for:
- Low balances (under $100)
- Large transactions (over $200)
- Every debit card purchase Helps prevent overdrafts and detect fraud quickly.
Ask about student or young adult accounts: Ages 18–24 often qualify for no-fee, no-minimum accounts with better terms. These usually convert to regular accounts at age 25.
Related Skills
- How to Build an Emergency Fund
- How to Set Up Auto Bill Pay
- How to Understand Your Credit Score
- How to Create a Monthly Budget
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