To open a certificate of deposit, you need three things in hand: a current government-issued photo ID, a Social Security number or other taxpayer identification number, and enough money to meet the bank’s minimum opening deposit. You also choose a term at the moment you open the account, which fixes the maturity date and, on a fixed-rate CD, the interest rate. Everything else in the certificate of deposit requirements is paperwork the bank must generate or disclosures it must hand you before you sign.
Identification the Bank Must Collect
Every bank and credit union in the United States runs a Customer Identification Program before opening any deposit account. The requirement comes from Section 326 of the USA PATRIOT Act.1U.S. Department of the Treasury. Treasury and Federal Financial Regulators Issue Patriot Act Regulations on Customer Identification At a minimum, the bank must collect four pieces of information from you:
- Your full legal name
- Your date of birth
- A residential or business street address
- A taxpayer identification number (Social Security number for U.S. persons, or a passport number, alien identification card number, or other government-issued document number for non-U.S. persons)
To verify that information, the bank will ask for an unexpired government-issued photo ID such as a driver’s license or passport.2eCFR. 31 CFR 1020.220 – Customer Identification Program Some institutions also use non-documentary methods, like cross-referencing your information against consumer reporting databases, particularly for online applications where you can’t hand over a physical card.
You generally must be at least 18 to open a CD on your own, since minors lack full legal capacity to enter binding contracts in most states. A parent or guardian can open a custodial CD on a minor’s behalf; the paperwork for that is covered further down.
Taxpayer ID and Backup Withholding
Banks need your Social Security number or Individual Taxpayer Identification Number (ITIN) because the IRS requires them to report every dollar of interest you earn.3Internal Revenue Service. Taxpayer Identification Numbers If your CD earns $10 or more in interest during the year, the bank files Form 1099-INT with the IRS and sends you a copy.4Internal Revenue Service. About Form 1099-INT, Interest Income
If you don’t provide a valid taxpayer ID, or the IRS notifies the bank that the number you gave is wrong, the bank must withhold 24% of all interest payments and send that money directly to the IRS.5Internal Revenue Service. Publication 15 (2026), Employers Tax Guide That’s backup withholding, and it applies automatically. You can claim the withheld amount as a credit on your tax return, but the cash is tied up until you file. Some banks will simply refuse to open the account rather than deal with backup withholding, so bringing a valid SSN or ITIN to the application is not optional in practice.
Minimum Deposit and Choosing a Term
Every CD has two hard requirements you set at opening: how much money to put in and how long to lock it up. Minimum deposits vary widely, from as little as $0 at some online banks to $100,000 or more for jumbo CDs that pay higher rates. Most traditional banks set the floor somewhere between $500 and $1,000.
Term lengths typically run from a few months to five years, though some banks offer terms as short as 28 days or as long as 10 years. Once you select a term, it becomes a fixed part of your contract. You cannot change the maturity date after opening without closing the account and paying an early withdrawal penalty. On a fixed-rate product the interest rate locks in at the moment you fund the CD, so the term you choose directly affects how much you earn.
A few institutions offer add-on CDs that let you make additional deposits during the term, usually through scheduled transfers from a checking or savings account. The bank may cap the total amount or number of extra deposits, and contributions stop once the CD matures. Worth asking about if you want to build savings gradually rather than committing a lump sum.
Disclosures the Bank Must Give You Before You Sign
Federal regulations under the Truth in Savings Act (Regulation DD) require the bank to hand you a set of specific disclosures before you finalize the CD. These are not optional courtesies. The bank is legally required to provide them, and you should read them carefully because they lock in the terms of your agreement. For a CD, the required disclosures include:
- The annual percentage yield (APY) and interest rate, along with the period during which the rate is in effect for fixed-rate accounts
- Minimum balance requirements — the minimum needed to open the account, avoid fees, and earn the disclosed APY
- The exact maturity date
- The early withdrawal penalty: a statement that a penalty will or may apply, how it is calculated, and the conditions that trigger it
- The renewal policy, including whether the CD renews automatically, whether a grace period exists, and how long it lasts
If any of these items are missing from the paperwork, ask for them before signing.6eCFR. 12 CFR 1030.4 – Account Disclosures The penalty disclosure is the one most people gloss over, and it’s the one that matters most if your plans change mid-term. A common structure is 90 days of interest for CDs with terms under a year and 180 days or more for longer terms, but each bank sets its own schedule, and on some CDs the penalty can eat into your principal if you haven’t earned enough interest to cover it.
Funding the Account and Naming a Beneficiary
Most banks let you apply online or in person at a branch. Either way, the application collects your personal information, your chosen term and deposit amount, and the details of the account you’ll use to fund the CD, typically a routing number and account number from an existing checking or savings account.
The application also asks whether you want to name a beneficiary, sometimes called a Payable on Death (POD) designation. This step is easy to skip and worth doing. A POD designation lets the funds pass directly to the person you name without going through probate if you die during the term. You can usually add or change a beneficiary later, but setting it up at opening takes about 30 seconds.
Once you submit the application, the bank pulls your initial deposit through an electronic transfer. About 80% of transfers over the ACH network settle within one business day, though some take two or three days depending on the banks involved. The CD starts earning interest once the funds clear and settle. If you don’t complete the funding within the bank’s specified window, often five to ten business days, the bank will typically cancel the pending account.
Opening a CD for a Minor
Because minors under 18 generally cannot enter binding contracts, a CD for a child must be opened as a custodial account under the Uniform Gifts to Minors Act (UGMA) or the Uniform Transfers to Minors Act (UTMA). The adult custodian manages the account and makes all decisions, but the money legally belongs to the child. Once the child reaches the age of majority, which state law sets anywhere from 18 to 25, control of the account transfers to them automatically.
The custodian needs their own government-issued ID and taxpayer ID, plus the child’s SSN. Contributions count as gifts, and in 2026 you can contribute up to $19,000 per child without triggering gift tax reporting requirements ($38,000 for a married couple contributing together).7Internal Revenue Service. Gifts and Inheritances
Opening a CD for a Trust or Business Entity
Opening a CD for a business entity or trust involves the same identity verification, plus documentation proving the entity exists and identifying who has authority to act on its behalf. The specific paperwork varies by entity type but generally follows this pattern:
- Trust: a copy of the trust instrument and government-issued ID for each trustee authorized to manage the account
- LLC: articles of organization, the operating agreement, and the IRS letter assigning the entity’s Employer Identification Number (EIN)
- Corporation: articles of incorporation, bylaws, and the EIN assignment letter
- Partnership: the partnership agreement or certificate of partnership and the EIN assignment letter
Each authorized signer on the account needs to present a valid photo ID.2eCFR. 31 CFR 1020.220 – Customer Identification Program Gathering this documentation before visiting the bank saves a return trip.
One Thing to Know Before You Sign
The certificate of deposit requirements themselves are simple, but the account you’re opening has one feature that catches people off guard: you cannot pull the money out early without paying a penalty. Partial withdrawals are not available on most standard CDs, so breaking the CD means closing it entirely. Read the penalty figure in your account agreement before you sign, decide on a term you can genuinely leave alone, and only then hand over the deposit.