5 Things You Need To Open A Bank Account

To open a bank account, you’ll need to input basic information, show a valid government-issued ID, provide proof of address, prepare your minimum deposit amount and include identifying information for any account co-owners.

Opening a bank account can help safeguard your savings thanks to FDIC insurance up to $250,000 held in the account. Plus, you can earn some interest on your money when you place it securely in a bank account. Learn how to open a bank account and the documentation you’ll need to have handy when you begin the process. Here’s everything you need to know whether you plan to apply for a new account in person or through an online bank.

What Do You Need to Open a Bank Account?

Before you head to your local bank or log on to get started virtually, you must assemble the necessary documents. The required documents vary a little between institutions and bank account types. But regardless of the account you’re starting with, plan to be ready with the following documents and information.

• Basic information: To get started, you’ll need basic information, such as your name, birthday and Social Security number. Include an accurate mailing address to ensure your statements and tax documents reach you.
• Government-issued ID: A driver’s license, passport or other state-issued ID that is not expired is necessary to prove who you are.
• Minimum deposit: The bank might require a minimum deposit when opening your account. You can likely make this deposit via a transfer from another account or with a check or cash if you’ll be opening your account in person. Some banks do not have minimum requirements, so this is not always necessary. 
• Joint account owner information: If you’re opening an account with a joint account owner, you’ll also need their information. When opening an account for your child under 18, you’ll need your child’s personal identifying information.
• Proof of address: Many banks require that you provide proof of address. A mortgage, rent or utility bill will often suffice.

How to Open a Bank Account in five Steps

Each bank has unique requirements and steps you’ll go through to open a new account. However, you can expect your search to include these steps.

1. Select Account Types

The first step is to choose what type of account you need. Savings accounts are good for housing your money in an accessible way. But if you want more interest and can handle less accessibility to your funds, a high-yield savings account or money market might be right for you.

A checking account is ideal when you need access to direct deposit, check-writing capabilities, and ease of moving your money around. You might consider opening multiple accounts at once to give you options for managing your money.

2. Choose the Bank

Now that you know the account types you need, you’re ready to select a bank. As you look at your options, consider the availability of branches and ATMs to help you easily manage your funds. Also, look into whether the bank charges monthly service fees or other fees, such as those charged when you have minimal funds in the account. 

3. Review Eligibility Requirements

Make sure you are eligible for the account you’re considering. For example, you might need to be 18 years of age for certain accounts, while others allow you to have a parent as a co-owner. Or you might need minimum deposit amounts to get started, which you might not have access to.

4. Prepare Your Initial Deposit

If you need an initial deposit to open your account, find a way to get that to your new account. If you have existing accounts, this is a simple transfer. But you might need to take cash to the bank in person if you don't.

5. Complete the Application Process

Assemble the required information to open your account. Complete the application process with your selected bank. If you’re applying with an online bank and encounter an issue, contact the customer service team for clarification or information.

What Else Must You Do When You Open a Bank Account?

Once you have a new bank account, complete these steps to ensure your finances are in good order.

• Sign-up for online banking: To view your funds and complete transactions easily, sign up for online banking. That way, you can see your account balance online anytime and complete transfers as needed.
• Reroute deposits and bill pay: Switch all automated payments to your new account. Cancel automated transfers from your old accounts. Make sure to update direct deposit with your employer.
• Close old accounts, if needed: If your new account replaces an old one, close out the old account. You should only do so once you’ve rerouted your deposits and updated all bill pay information. That way, you can be confident that you aren’t disrupting any automated processes you’ve put in place. For ultimate security, destroy all checks and debit cards tied to your old account.

Prepare Well for Opening a Bank Account

When preparing for an account opening, assemble the necessary documents and materials for a smooth process. Knowing what is necessary before starting the process can help avoid delays or confusion with the bank. 

Frequently Asked Questions