How to Open a Checking Account

A checking account helps you cover everyday expenses. This account makes your money more accessible, and any extra money can go into a savings account or investment portfolio. If you’re new to banking or want to create a bank account with another financial institution, this guide will help. You will discover how to open a checking account and what to look for before committing to a bank.

Steps to Open a Checking Account

Consumers can use these steps to open a checking account with their current bank or a new financial institution.

Choose a Bank or Financial Institution

The first step is to choose a bank or financial institution with products and services that align with your financial objectives. You can choose from traditional banks, credit unions and online banks.

Select the Type of Checking Account

Consumers can pick from several types of checking accounts. While basic checking accounts are popular, you can also opt for an interest-bearing account or an online-only account. Interest-bearing checking accounts may have higher minimum deposit requirements than traditional checking accounts. Interest-bearing checking accounts have lower interest rates than savings accounts, but some interest is better than no interest.

Gather Required Documents

The bank or financial institution will request a few personal documents to verify your identity. These are the documents you should assemble as you apply for a checking account:

• Valid government-issued photo ID (passport or driver’s license)
• Social Security number or Individual Taxpayer Identification Number (ITIN)
• Proof of address (utility bill, rental agreement or another proof)
• Initial deposit, if required

Visit the Bank or Apply Online

You can visit a physical branch to open a checking account, but most banks make it easy to create online accounts. You can save time if you create a checking account online, and some banks only have that option. You can visit a bank’s website to learn more about opening a checking account.

Complete the Application Form

Most banks have straightforward application processes for opening a checking account. You will have to provide personal information, such as your name, email and contact details. The application may also require additional information.

Review Fees and Terms

Every checking account has fees and terms. Check these in detail before opening an account and compare options. You should pay extra attention to monthly fees, overdraft fees and similar expenses.

Submit Identification and Documents

You will have to submit your valid photo ID, proof of address and additional documents to the bank. You can give this information to a representative at a physical branch or upload scanned copies for an online application.

Make Initial Deposit

Some banks require an initial deposit for you to open a checking account. You can provide these funds through cash, check or electronic transfer.

Receive Account Details

Once your application gets approved and the bank verifies your documents, you will receive your account details, typically via email. You will see your account number and routing number in the message about your account details. 

Activate Your Account

Consumers can activate their accounts after receiving their account details. You can get online banking access, order checks and use the bank’s additional features.

Receive Checks and Debit Card

The bank will mail checks with your information and a debit card if you request those resources. When you receive your debit card, your bank will give you instructions on how to activate your card. 

Start Using Your Account

The hard part is finally over. You can now use your new checking account to make payments, deposit and withdraw funds and conduct other transactions. If you have an interest-bearing checking account, the interest payments will begin accumulating.

Requirements for Opening a Checking Account

Banks have a few requirements for people who want to open checking accounts. The requirements are straightforward, but it’s good to know them before getting started.

Age Restrictions and Identification Documents

Banks use age restrictions to prevent people who are too young from opening bank accounts. If you are 18 years or older, you should have no issue with opening a bank account. A financial institution will ask for a valid ID to verify your age and identity.

Proof Of Address

Banks also want your proof of address so they know where to send your bank account statements, debit cards and other resources. You can provide your proof of address with a lease agreement, bank statement, utility bill or another valid document.

Initial Deposit Amount

Some banks have initial deposit requirements for consumers who want to open checking accounts. You will have to make this deposit to open your checking account.

Age Requirements for Joint Accounts

Joint accounts have special age requirements. It is possible for a minor to have a bank account if they are part of a joint bank account. Not all financial institutions offer joint bank accounts.

Key Factors to Consider Before Opening a Checking Account

Consumers can pick from several checking accounts. Thousands of banks offer these accounts, but you should consider these key factors before making a choice. 

Fees and Charges

Banks charge various fees. Some banks are reasonable, while others charge excessive fees that can create an unenjoyable banking experience. Consumers should review a bank’s maintenance fees, ATM fees, overdraft charges and other costs.

Account Features

Many banks have expanded their account features to make themselves more competitive. Some banks have budgeting tools, spending insights and other resources that can enhance your money management. Individuals should review several banks and their features to assess what features make sense for them. 

Minimum Balance Requirements

Some financial institutions have minimum balance requirements for their checking accounts. Not adhering to the requirement can result in monthly maintenance fees, but some banks are more flexible than others.

ATM Network

Some banks have over 50,000 ATM locations available for their customers and reimburse out-of-network ATM fees. If you frequently use these machines to withdraw cash, you should carefully review a bank’s ATM network and its policy with fees.

Overdraft Protection Options

Overdraft protection can save you hundreds of dollars on overdraft fees. These fees take place each time you overdraw your checking account. Each overdraft fee is $30-$35, depending on the bank. Financial institutions with good overdraft protection options, such as linking a savings account or a line of credit to your checking account, are more appealing than banks that don’t take those steps.

Customer Service and Support

You will have to contact customer support if you encounter any obstacles. Checking online reviews can help you gauge the level of quality you will find at customer support. Low ratings may suggest that it’s better to work with another bank.

Interest Rates

Banks give their customers interest to reward them for keeping money in their checking and savings accounts. However, some banks are more generous with their interest payments than others. You should check the interest rates across checking, savings, money market and CD accounts. Banks that offer higher interest rates for these accounts are more enticing.

Online and Mobile Banking Services

Online and mobile banking services offer various features and give customers convenient access to their funds. You should look for banks that offer a suite of features, such as bill payments, fund transverse, account monitoring and mobile check deposits. You should also consider the user experience and if you have an easy time navigating through the bank’s mobile app and website.

Bank Reputation And Stability

Consumers should review a bank’s reputation, customer reviews and financial stability before putting their hard-earned money into a checking account. Banks that have been around for many years or are off to a great start may have good reputations, but thorough research will confirm a bank’s status.

Get Started with Your Checking Account

A checking account makes it easier to cover everyday expenses and distribute your money across savings and investment accounts. Thousands of banks make it easy to get started and open a checking account. Comparing the pros and cons of each bank will help you decide which one is the right fit for you.

Frequently Asked Questions