To open a US bank account, you need a government-issued photo ID, proof of a physical US address, and a taxpayer identification number, and you can then apply either in person at a branch or online in under an hour. The requirements come from federal identity-verification rules that every bank has to follow, so the checklist looks nearly identical whether you walk into a national bank or a local credit union. US citizens, permanent residents, and foreign nationals can all open accounts, though non-residents have an extra tax form to file with the bank.
What You Need Before You Apply
Federal law requires every bank to run a Customer Identification Program before opening an account, which means verifying who you are and where you live.1Financial Crimes Enforcement Network. USA PATRIOT Act2eCFR. 31 CFR 1020.220 – Customer Identification Program Requirements for Banks Have three things ready before you start.
Government Photo ID
A current passport or state-issued driver’s license satisfies the photo ID requirement at virtually every bank.3HelpWithMyBank.gov. What Type(s) of ID Do I Need to Open a Bank Account? Some institutions ask for a second form of identification, such as a birth certificate or Social Security card, particularly if the primary ID is missing certain details. Foreign nationals can generally use a passport combined with a valid US visa or consular ID card.
Proof of a Physical Address
You need to show a residential or business street address. A utility bill, signed lease, or official government mail all work. A post office box alone will not, because federal regulators want law enforcement to be able to reach account holders at a physical location.4Financial Crimes Enforcement Network. Customer Identification Program Rule – Address Confidentiality Programs If you have no fixed address, most banks will accept the street address of a close relative or another contact person.
A Taxpayer Identification Number
Banks need a taxpayer identification number to report interest earnings to the IRS. US citizens and permanent residents use their Social Security Number. Non-residents and resident aliens who don’t qualify for an SSN use an Individual Taxpayer Identification Number instead.5Internal Revenue Service. Taxpayer Identification Numbers (TIN)
If you don’t have an ITIN yet, apply by submitting IRS Form W-7 with a federal tax return and documents proving your foreign status and identity. Applications go by mail to the IRS Austin Service Center, or you can apply in person at an IRS Taxpayer Assistance Center or through an authorized Certifying Acceptance Agent. Processing takes several weeks, so start early.6Internal Revenue Service. How to Apply for an ITIN
Skipping this step is expensive. Without a valid tax ID, the bank must withhold 24% of any interest your account earns and send it to the IRS as backup withholding.7Office of the Law Revision Counsel. 26 U.S. Code 3406 – Backup Withholding You’ll get it back when you file, but your money sits with the government in the meantime.
An Extra Form for Non-Residents
Foreign nationals also need to file IRS Form W-8BEN with the bank. This certifies your foreign status and, if a tax treaty between the US and your home country applies, can reduce or eliminate the standard 30% withholding on interest income. Without it, the bank withholds at either the 30% foreign-person rate or the 24% backup rate.8Internal Revenue Service. Instructions for Form W-8BEN
Pick the Type of Account First
Decide what kind of account you actually want before you fill anything out. The main options:
- Checking accounts handle frequent transactions. Unlimited check-writing, debit card access, little or no interest.
- Savings accounts pay higher interest but may limit certain monthly withdrawals.
- Money market accounts pay competitive interest and allow checks and debit cards, usually with higher minimum balances.
- Certificates of deposit lock your money in for a fixed term at a guaranteed rate, with a penalty for pulling out early.
Whichever you pick, deposits at a federally insured bank are protected up to $250,000 per depositor, per bank, for each ownership category. Credit unions carry the same $250,000 coverage through the National Credit Union Administration’s Share Insurance Fund.9FDIC. Deposit Insurance At A Glance10National Credit Union Administration. Deregulation Project
Filling Out the Application
The form asks for your full legal name as it appears on your ID, date of birth, phone number, and email address.2eCFR. 31 CFR 1020.220 – Customer Identification Program Requirements for Banks If you’re under 18, most banks require a parent or guardian to open a joint account with you; the age at which you can open one independently varies by state.11FDIC. Your First Job? Expect fields for your employer and approximate annual income too. That information helps the bank build a risk profile and flag activity that doesn’t match your stated situation.
You’ll also need to fund the account. Some banks require an initial deposit as low as $25 to $100. Others let you open with zero and fund it later. If you’re transferring from another bank, have that institution’s routing and account numbers ready. Cash and checks work as well.
Two Decisions to Get Right
Some banks let you add a Payable on Death beneficiary during the application. That person automatically receives the account balance when you die, without probate. The beneficiary has no access while you’re alive, and you can change or remove the designation at any time. It takes about 30 seconds.
You’ll also see an overdraft opt-in form. Federal rules prohibit banks from charging overdraft fees on ATM withdrawals and one-time debit card purchases unless you explicitly opt in.12eCFR. Requirements for Overdraft Services If you opt in, the bank will cover those transactions when your balance is short and charge you a fee. If you don’t, the bank declines the transaction instead. A declined transaction costs nothing; overdraft fees add up fast.
In Person or Online
At a branch, a banker scans your documents, enters your information, and has you sign a physical signature card. Twenty to forty-five minutes and you walk out with an active account.
Online, you upload images of your ID and address documents, fill in the same fields, and sign electronically. The E-Sign Act gives electronic signatures the same legal weight as ink signatures, provided you affirmatively consent to conducting business electronically.13National Credit Union Administration. Electronic Signatures in Global and National Commerce Act (E-Sign Act) After submitting, save the confirmation number as proof the application entered the bank’s review queue.
After You Submit
Large banks often approve online applications instantly. Others take a few business days to verify documents manually. You’ll get an email, letter, or on-screen notification with the result, and successful applicants can usually set up online access and start funding the account right away.
If You’re Denied
When a bank turns you down based on a consumer report, it must send you an adverse action notice naming the reporting agency, explaining your right to a free copy of the report within 60 days, and telling you how to dispute inaccurate information.14Federal Trade Commission. Using Consumer Reports for Credit Decisions: What to Know About Adverse Action and Risk-Based Pricing Notices
Most bank-account denials don’t come from your Equifax or TransUnion credit score. They come from ChexSystems, a specialty agency that tracks banking history: bounced checks, unpaid overdraft fees, accounts closed for cause. If ChexSystems was part of the decision, you can request a free Consumer Disclosure Report online, by calling 800-428-9623, or by mailing a request with copies of your ID and proof of address.15ChexSystems. Consumer Disclosure Errors happen; disputing inaccurate items can clear the path for a successful application.
If the report is legitimately negative, second-chance checking accounts exist for exactly this situation. Many banks and credit unions offer them, either skipping the ChexSystems check or weighing it less heavily. They may carry higher monthly fees or fewer features, but after six to twelve months of responsible use you can often upgrade to a standard account.
Getting Access to Your Money
Opening the account and being able to spend the money you deposit are two different things. Federal Regulation CC sets maximum hold times on deposits.
- Cash deposited in person: available by the next business day.
- Direct deposits and electronic transfers: available by the next business day.
- Government checks and cashier’s checks deposited in person: available by the next business day.
- Personal and business checks: generally available within two business days.
- Deposits at ATMs the bank doesn’t own: up to five business days.
Banks can extend these holds under exceptions. Deposits over $6,725 may be partially held longer, with the first $6,725 released on the normal schedule. Accounts open less than 30 days can also face extended holds on check deposits.16Federal Reserve. A Guide to Regulation CC Compliance A large opening deposit by check at a brand-new account can leave you waiting over a week for full access.
Set Up Digital Access and Watch for Fraud
Once you’re approved, set up online and mobile banking immediately. Create a username and password and enroll in multi-factor authentication, where the bank texts or emails a one-time code when you log in from a new device. It’s the single most effective way to keep unauthorized users out.
Your debit card arrives by mail in seven to ten business days. Activate it through the bank’s phone system or online portal and choose a four-digit PIN.
Federal law caps your liability for unauthorized debit card and electronic transfers, but only if you report fast. Report a lost or stolen card within two business days and your maximum liability is $50. Wait longer and it jumps to $500. If fraudulent charges appear on a statement and you don’t report them within 60 days of receiving that statement, you face unlimited liability for unauthorized transfers made after that window.17Consumer Financial Protection Bureau. 1005.6 Liability of Consumer for Unauthorized Transfers Check your account at least weekly. Most banking apps offer real-time transaction alerts, which effectively automates the monitoring.
Fees to Check Before You Sign
The fees you don’t know about are the ones that hurt. Ask about each of these before opening the account.
The average monthly maintenance fee on a checking account runs around $14. Most banks waive it if you meet one condition, such as maintaining a minimum daily balance (often $1,500), receiving a set amount in monthly direct deposits, or holding another qualifying account. Ask about waiver criteria specifically.
Using an out-of-network ATM triggers two charges: one from the ATM owner and one from your bank. Combined, the average cost is close to $5 per withdrawal. In-network ATMs, cash back at point of sale, and banks that reimburse ATM fees all sidestep this.
Overdraft fees at major banks have historically been $25 to $35 per item, though many institutions have reduced or eliminated them recently. Non-sufficient funds fees apply when the bank bounces a transaction instead of paying it. Overdraft fees on ATM and debit card transactions can only be charged if you opted in.
Some accounts add a low-balance fee separate from the maintenance fee. Inactivity fees kick in if you stop using the account entirely. After three to five years of inactivity, depending on your state, the bank must turn the funds over to the state as unclaimed property. A small recurring transfer keeps the account active.
Domestic outgoing wire transfers typically cost $15 to $30, incoming wires $0 to $15, and international outgoing wires $35 to $50. If you move money frequently, compare wire fees across banks, or use cheaper electronic transfer methods when speed doesn’t matter.