To open a US bank account, you need a government-issued photo ID, proof of your address, a taxpayer identification number, and a small opening deposit that starts around $25 at most institutions. The application takes about 15 minutes online or roughly an hour at a branch, and the account is usually active the same day. The steps are simple for U.S. citizens and only slightly more involved for non-citizens, who can substitute alternative identification documents.
What You Need to Bring or Upload
Federal law requires every bank to run a Customer Identification Program before opening any account. At a minimum, the bank must collect your name, date of birth, address, and an identification number, and then verify those details against documents you provide.1eCFR. 31 CFR 1020.220 – Customer Identification Program Requirements for Banks In practice, that means four things:
- An unexpired government-issued photo ID. A U.S. driver’s license or passport works. Non-citizens can use a foreign passport, permanent resident card, or another government-issued document showing nationality or residence with a photo.1eCFR. 31 CFR 1020.220 – Customer Identification Program Requirements for Banks
- Proof of a residential or business street address. A recent utility bill, lease, or employer letter is standard. If you don’t have a traditional street address, the bank may accept a military APO/FPO box or the address of a next of kin.1eCFR. 31 CFR 1020.220 – Customer Identification Program Requirements for Banks
- A taxpayer identification number. For most U.S. citizens and residents this is a Social Security Number. The bank uses it to report any interest your account earns to the IRS.2Office of the Law Revision Counsel. 26 USC 6049 – Returns Regarding Payments of Interest
- An opening deposit. Most checking accounts activate with $25, though premium accounts and money market accounts often require $100 or more.
Your name must match your ID exactly. Small inconsistencies between documents can delay or block approval. Providing false information on a bank application is federal bank fraud and carries fines of up to $1,000,000 and up to 30 years in prison.3Office of the Law Revision Counsel. 18 USC 1344 – Bank Fraud
If You Don’t Have a Social Security Number
Non-citizens who aren’t eligible for an SSN can use an Individual Taxpayer Identification Number (ITIN) instead. The IRS issues ITINs under 26 U.S.C. § 6109 to people who need a tax ID but can’t get an SSN.4Office of the Law Revision Counsel. 26 USC 6109 – Identifying Numbers You apply on IRS Form W-7 with original documents (or certified copies) proving identity and foreign status. A passport is the only document that satisfies both requirements on its own.5Internal Revenue Service. Instructions for Form W-7 You can submit the application by mail, through an IRS-approved acceptance agent, or in person at a Taxpayer Assistance Center.
You may not need the ITIN in hand to apply. The federal CIP rule lets banks accept a passport number with country of issuance, an alien identification card number, or any other government-issued photo document showing nationality or residence.1eCFR. 31 CFR 1020.220 – Customer Identification Program Requirements for Banks Which documents a specific bank will accept varies, so call the branch first.
One financial reason to sort out your TIN before opening an interest-bearing account: if you don’t provide one, the bank must withhold 24% of your interest and send it to the IRS. The same backup withholding applies if the IRS notifies the bank that your TIN is wrong or that you’ve underreported interest income in the past.6Internal Revenue Service. Topic No. 307, Backup Withholding You can reclaim the money when you file your return, but it ties up your earnings until then.
Choosing Where to Open the Account
Traditional banks with physical branches work well if you want in-person help and easy cash deposits. Credit unions are member-owned cooperatives that tend to charge lower fees and offer better loan rates, though their branch and ATM networks are usually smaller. Online-only banks have no branches and pass the savings on as higher interest. Some high-yield savings accounts were paying around 4% APY in early 2026, compared to roughly 0.6% at traditional banks.
Then pick an account type. Checking accounts handle everyday transactions like bill payments, purchases, and direct deposits. Savings accounts pay interest on money you don’t plan to spend soon. Most people open both. Money market accounts blend the two with slightly higher yields. Certificates of deposit lock money up for a fixed term at a guaranteed rate, and pulling out early costs at least seven days’ simple interest under federal rules, though most banks charge considerably more than that floor.7HelpWithMyBank.gov. What Are the Penalties for Withdrawing Money Early From a Certificate of Deposit (CD)?
Applying in Person vs. Online
At a branch, bring your ID, proof of address, and TIN. A banker will review your original documents, scan them, guide you through the paperwork, and take your opening deposit in cash, by check, or by transfer. In most cases you walk out with an active account. Applying in person is the better route if you’re a non-citizen, since branch staff are more equipped to work through alternative identification.
Most banks let U.S. citizens and permanent residents apply entirely through a website or mobile app. You upload photos of your ID, fill in your information, and fund the account by linking an existing bank account or entering a debit card. The electronic signature you provide has the same legal force as a handwritten one under federal law.8Office of the Law Revision Counsel. 15 USC 7001 – General Rule of Validity Online applications are faster, but some require an existing U.S. bank account to fund the opening deposit, which is a problem if this is your first one.
If You’ve Been Denied Before
Most banks check applicants against ChexSystems, a consumer reporting agency that tracks checking and savings history, including involuntary closures, unpaid overdrafts, and suspected fraud.9Consumer Financial Protection Bureau. Chex Systems, Inc. A negative record there can sink an application even if your credit score is fine.
Look for “second chance” checking accounts if that happens. These skip the ChexSystems review or apply more lenient standards. They tend to charge higher monthly fees, offer fewer features, and restrict overdraft access. Some convert to a standard account after a set period of good behavior; one major bank switches its second-chance account to regular checking automatically after 365 days. You’re entitled to one free ChexSystems report every 12 months, which lets you see what’s on file and dispute anything inaccurate.
Fees to Watch For
Read the fee schedule before opening the account, not after the first statement. Common charges include:
- Monthly maintenance fees, often $5 to $12, usually waived if you keep a minimum balance or set up direct deposit.
- Overdraft fees when your balance goes negative. Federal rules bar banks from charging overdraft fees on one-time debit card and ATM transactions unless you specifically opt in to overdraft coverage. Banks often ask you to opt in during account opening. Declining is usually the cheaper choice.10eCFR. 12 CFR 1005.17 – Requirements for Overdraft Services
- Out-of-network ATM fees, charged by both your bank and the ATM owner. Combined, these averaged close to $5 per withdrawal in 2025. Credit unions and online banks often reimburse a set number of ATM fees each month.
- Inactivity or dormancy fees. Accounts that go unused for three to five years, depending on the state, can be turned over to the state as unclaimed property under escheatment laws. A small transaction or login resets the clock.11HelpWithMyBank.gov. When Is a Deposit Account Considered Abandoned or Unclaimed?
How Your Money Is Protected
Deposits at U.S. banks and credit unions are federally insured, so your money is safe even if the institution fails. The FDIC insures bank deposits up to $250,000 per depositor, per bank, per ownership category, which means a single account, a joint account, and a retirement account at the same bank are each separately covered up to that limit.12Office of the Law Revision Counsel. 12 USC 1821 – Insurance Funds Credit unions get the same $250,000 coverage from the National Credit Union Administration’s Share Insurance Fund, backed by the full faith and credit of the United States.13National Credit Union Administration. Share Insurance Coverage
Confirm the FDIC or NCUA logo before you deposit anything. Uninsured institutions exist, especially newer fintech companies that partner with banks but may not pass full insurance coverage through to your individual account.
After the Account Opens
Your debit card usually arrives by mail within about two weeks. It won’t work until you activate it, typically by calling an automated line or using a temporary PIN at an ATM. Meanwhile, the bank’s mobile app gives you immediate access to view transactions, deposit checks by photo, and transfer money. Use a strong, unique password, and turn on two-factor authentication if the bank offers it.
Turn on transaction alerts through the app. If someone makes unauthorized electronic transfers, federal law caps your liability at $50 when you report a lost or stolen debit card within two business days of discovering the problem. Wait longer and your exposure jumps to $500.14eCFR. 12 CFR 1005.6 – Liability of Consumer for Unauthorized Transfers Real-time alerts usually catch fraud within hours, well inside that two-day window.
Set up direct deposit to route your paycheck or benefits straight into the account, typically a day or two faster than a paper check. Employers need your bank’s routing number and your account number, both of which appear in the mobile app or on a voided check. Direct deposit is also one of the most common ways to qualify for a waived monthly fee.
Consider naming a payable-on-death (POD) beneficiary. A POD designation transfers the account balance directly to the person you name when you die, skipping probate. The mechanics are set by state law, but the paperwork is usually a short form filed at the bank at no cost. On a joint account with right of survivorship, the POD beneficiary receives funds only after the last surviving account holder dies.
One boundary worth flagging: you generally need to be 18 to open an account on your own, because that’s the age at which you can enter into contracts. Minors hold accounts jointly with a parent or guardian, or through a custodial account under state law that gives the adult control until the child reaches the age of majority.