Often the hub of a person’s financial life, bank accounts can be quick and simple to open with the right materials in hand, including a valid government-issued photo ID, personal information such as your Social Security number (SSN), and perhaps an opening deposit.
Here, learn the details on what you need to open a bank account and how to navigate the process itself.
Key Points
• Opening a bank account typically requires a valid government-issued photo ID, personal information such as your age and Social Security number, and possibly an initial deposit.
• Joint account applications require personal and identifying information for all account owners.
• How you open a bank account may vary slightly depending on the bank’s criteria, such as whether a minor needs an adult co-owner to be on the account.
• After opening a bank account, you may be able to utilize features like online bill pay, account alerts, and linking accounts to manage finances effectively.
• The process for opening a bank account online and in-person are similar, though the deposit methods, if required, may differ.
What You Need to Open a Bank Account
Here’s a list of what you are likely to need when opening a bank account. Gathering these materials before you actually begin the process of starting a new account can help you save time and frustration.
1. Qualifying information: First, you’ll need to make sure you’re eligible to open a bank account. If you’re under 18, many (but not all) banks may require a parent or legal guardian to open the account with you.
2. Identification: You’ll also need to provide a valid government-issued photo ID such as a driver’s license, non-driver state ID card, or passport.
3. Personal information: Be prepared to provide basic information such as your birthdate and SSN. You’ll also need to give contact information such as your address, phone number, and email. You might be required to submit proof of residency, such as a utility bill.
◦ If you’re opening a joint account: You’ll need the identifying and personal information listed above for all the account owners. If you are doing this in person at a bank branch, you may not need the other person present.
4. Initial deposit: In many instances, you’ll need an initial deposit when opening a bank account. The minimum amount required to open an account varies from bank to bank but is often between $25 and $100. In some cases, it can be absolutely zero. If you’re transferring the minimum deposit from another bank, you will likely need the routing and account numbers.
5. Username and password: If you’re applying online or opening a checking or savings account at an online-only bank, you’ll need to establish a username and password.
6. Signatures: If you are applying for an account in person at a branch, you’ll likely be able to sign all documents there. If you’re applying online, you may be able to use an e-signature, or, depending on the bank, you may have to wait and sign documents that are sent to you via the mail in order to access full privileges.
Get up to $300 when you bank with SoFi.
No account or overdraft fees. No minimum balance.
Up to 4.20% APY on savings balances.
Up to 2-day-early paycheck.
Up to $2M of additional FDIC insurance.
How to Open a Bank Account
With these materials in hand, it can be quite simple to open a bank account. Here are the typical steps involved.
Decide What Kind of Account and Which Bank Is Best for You
First, determine if you want to open a checking or savings account (learn more about the differences below) or both; most people have at least one of each.
Then, you can review various bank options. For instance:
• You might decide to go with an online bank because of the convenience and the higher interest rates they may offer.
• You might prefer a traditional bank, with a nearby branch, where you can regularly meet with the team in person.
• You might like to bank at a credit union that you can become a member of based on, say, your profession.
Shop around a bit, and compare features to find the best fit.
Gather Your Documentation
As noted above, whether you are applying online or in person, you will need to have a few documents on hand, including government-issued photo ID and your SSN.
Fill out the Application
Whether in person or online, you will want to make sure to fill this out carefully, double-checking the information to make sure it’s accurate.
Pay an Opening Deposit if Required
You may or may not need to pay a deposit to get your account up and running. (If you are opening an account online and an opening deposit is required, you can typically do an electronic funds transfer.)
Many banks look for $25 to $100 as an opening deposit, but some — especially for checking accounts — may allow you to open an account without any cash.
Start Using Your Account
Depending on the kind of bank account you are opening (checking vs. savings; at a traditional or an online bank), you may need to wait to get a debit card, checks, and other materials. However, you should be able to use your account right away for at least some functions, such as setting up direct deposit and making electronic payments.
Bank Account Types to Choose From
There are two main types of basic bank accounts: checking and savings accounts. Many people choose to open multiple types of bank accounts at the same time.
| Type of Account | Pros | Cons |
|---|---|---|
| Checking Account |
|
|
| Savings Account |
|
|
In a nutshell:
• If you’re looking for a bank account to use primarily for paying expenses, a checking account with no or low fees is probably best. You can get to your money using checks, ATMs, electronic debits, and debit cards tied to the account. You can deposit using ATMs, direct deposit, electronic transactions, and over-the-counter deposits.
• If you are trying to save for short-term financial goals such as a car, vacation, or down payment on a home, a savings account may fit your needs. Savings account interest rates vary, with the amount of interest paid often being quite modest at traditional banks and potentially higher at online banks. There may be limits on how many transactions you can make in a given time period.
A couple of notes regarding bank accounts:
• Any interest earned on a savings or checking account is considered taxable income and will be reported to the Internal Revenue Service (IRS).
• It’s wise to check with banks to see what the minimum deposit and balance requirements are and what kinds of fees are applied to accounts to make sure there aren’t hidden costs lurking.
Using Your New Bank Account
Now that you know what you need to open a bank account and how to start one, here’s some advice on how to use your new savings or checking account. (Remember to keep an eye out for anything coming to you in the mail, such as a debit card or paper checks.)
• Utilize online features: You’ll likely want to sign up for any electronic features associated with your account that may help you manage your money. This includes online bill pay, which allows you to pay bills electronically, eliminate paper checks, and take advantage of remote check deposits. Account alerts are another benefit of electronic bank accounts, as they can warn you about unusual activity in your account and if your balance is getting low.
• Track activity: It’s a wise move to keep close track of the activity in your checking account to make sure you don’t overdraw. Most banks charge hefty overdraft fees for purchases that put the account in the red. Those fees can add up fast.
• Consider linking accounts: If you’ve opened both a savings and checking account, you may want to consider linking the two. This way, you may be able to avoid overdraft charges and have a place to put any extra money from your checking account into a more lucrative, interest-bearing account.
As you see, starting to use a bank account takes just a little bit of time and effort. Getting up and running can be an important step towards putting your money to work for you and optimizing your financial life.
The Takeaway
Opening a bank account is usually quite simple. Typically, you’ll need personal information, government-issued photo ID, and an opening deposit to open a bank account. You might choose to open a checking or savings account or, if you’re like most Americans, both kinds of accounts. Once your bank account or accounts are established, you can enjoy a variety of conveniences and features that can help you manage your money better.
Looking for one-stop banking? See what SoFi offers.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
FAQ
How much money do you need to open a bank account?
You will often need an initial deposit to open your checking account or your savings account. For checking and savings accounts, this can be as low as $25 or $100, depending on the bank and the account services you’ve signed up for. In some cases, though, a bank (usually an online bank) may let you open a checking account with no money until your first paycheck or other amount of money is deposited.
Are the requirements to open a bank account online any different?
The requirements for opening a bank account online vs. in person are similar if not the same, generally requiring personal information and ID documents. Worth noting: You might open a bank account in person with cash. However, with an online bank account, you would probably need to make an electronic transfer or set up direct deposit.
What ID do you need to open a bank account?
You will typically need a government-issued photo ID to open a bank account. Usually, this means a driver’s license, a non-driver’s ID card, or a valid passport.
Photo credit: iStock/atakan
SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit activity can earn 4.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.
As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.20% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 10/31/2024. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
SOBNK-Q324-091