About 5.6 million U.S. households had no bank or credit union account in 2023, according to the FDIC. A checking account gives you a safe place to keep your money, receive your paycheck, and pay bills without carrying cash. It’s also the most common type of bank account. If you don’t have one yet, you’ll typically need a photo ID and sometimes a small opening deposit. The bank may also check your past banking history, which is tracked separately from your credit.
What you need to open a checking account
Banks and credit unions are required to verify your identity before they open an account. You’ll typically provide your name, date of birth, address, and ID number.
Identification
The bank will need to see government-issued photo ID, like a driver’s license, state ID, passport, or military ID.
You also need a Social Security number (SSN) or individual taxpayer identification number (ITIN). Not having an SSN doesn’t rule you out. Some banks and credit unions accept a passport number from another country or another government-issued ID. Call ahead and ask which forms of ID it accepts.
Personal details
Have your home address, phone number, and email address handy. Some banks ask for proof of address, such as a utility bill, lease, or other mail with your name on it.
Initial deposit, if needed
You typically need to make an initial deposit between $25 and $100 to open a checking or savings account. If the deposit is hard to spare, look for an account with no opening deposit. Some banks don’t require one.
Step by step: How to open a checking account
1. Choose a checking account
Before you compare banks, decide what kind of account you need. To avoid monthly fees, look into free checking. If you’re a student, look for student checking accounts. If a past bank account was closed because of a problem, like an unpaid overdraft, a second-chance account can give you a place to start again.
2. Compare banks, credit unions, and online banks
Many different types of financial institutions offer checking accounts. The best choice depends on how you like to bank and your financial goals:
- Banks usually support branches and ATMs, so you can get help in person within your neighborhood or city.
- Credit unions are owned by members. You may need to meet requirements to join, such as living within a specific area or working within a particular industry.
- Online banks don’t typically have branches, so you’ll open and manage your account through an online account or banking app.
Before you open an account, make sure your money will be insured. For banks, search the FDIC’s BankFind Suite. For credit unions, use the NCUA’s Credit Union Locator.
If you’re signing up through an app, look up the partner bank, not the app itself. That’s the insitution that holds your money and insures it.
How to find the bank behind an app
Most fintech apps aren’t banks, and the name on the app usually isn’t the name to search. Three places to find the partner bank:
1. The app’s disclosures, often in fine print on the signup or home screen. Look for “Banking services provided by [Bank], Member FDIC.”
2. Your account agreement, which names the institution holding your deposits.
3. The confirmation email when you open the account, which frequently names the bank even when the app doesn’t display it prominently.
If no bank is named anywhere, treat that as the answer. And note that “FDIC insured” in marketing copy isn’t the same as a named, verifiable institution. The Synapse collapse left more than 100,000 depositors unable to reach money they believed was covered.
3. Gather your documents
Ready your ID, Social Security number or ITIN, proof of address, and opening deposit before you start. That way, you’ll avoid delays if the bank needs to confirm your identity.
4. Apply online or in person
Most banks let you apply through a website or app. If your bank has branches, you can also apply in person to ask questions or have someone review your documents.
The bank may check your banking history with a checking account reporting company. Banks and credit unions send this type of information to reporting companies like ChexSystems and Early Warning Services. Some review your traditional credit reports too.
5. Fund your new account
If your account requires an opening deposit, you can usually make it with cash at a branch, a transfer from another account, or a check.
6. Set up direct deposit and online access
Once your account is open:
- Set up direct deposit with your employer so your paycheck goes straight into your account.
- Download the app and set up online access so you can check your balance at any time.
- Turn on balance alerts, so you can catch a low balance before it turns into a fee.
- Activate your debit card and choose a PIN you’ll remember.
- Set up autopay for regular bills so you’re less likely to miss a due date.
Read more >> How Long Does It Take to Switch Banks?
Types of checking accounts
Standard checking
A standard or traditional checking account is the basic option for paying bills, using a debit card, and receiving direct deposits. Some charge a monthly fee unless you meet a minimum balance or set up a specific number of deposits each month.
Free checking
Free checking accounts don’t charge a monthly maintenance fee. You may still have to pay other fees, like out-of-network ATM fees or overdraft charges, so read the account’s fee schedule before you sign up.
Student checking
Some banks offer checking accounts designed for students, often with lower fees or minimums. Before you open one, ask what happens to the accounts after you graduate or reach a certain age. Some student accounts automatically change to standard accounts with regular fees after you graduate.
Second-chance checking
These accounts are for people whose past bank account ended with a problem, like an unpaid negative balance. They may come with fees or limits, so ask whether the account upgrades to a standard account after you’ve used it without problems for a while.
Read more >> What Are the 6 Types of Bank Accounts?
What to look for when choosing a checking account
Can you open a checking account with poor credit?
In many cases, yes. Your credit score and your banking history are separate records, and banks usually focus on your banking history. Some also look at your credit report, so ask the bank how it reviews applications before you apply.
Checking accounts don’t appear on your credit report. A negative checking account report can affect whether you’re approved, but it doesn’t affect your credit or your ability to get a loan or credit card.
The exception is an unpaid negative balance that’s sent to collections. The collection account can appear on your credit report.
Read more >> Do You Need a Credit Score to Open a Bank Account?
Common reasons a bank can deny your account
Most denials are based on what a checking account reporting company has on file. Your report may include negative information if you had an account before and left an unpaid negative balance, such as from an overdraft, on an account the bank or credit union closed. This is called an involuntary closure. Your report may also include a past fraud concern or a history of bounced checks.
Problems verifying your identity can also hold up an application. Before you apply again, make sure your name and address match your ID. If you’ve moved recently, bring something that shows your current address, like a lease or utility bill.
If you’re denied:
- Find out which company provided the report. Ask the bank or credit union for the name of the checking account reporting company that provided the negative information.
- Get your free report. Nationwide checking account reporting companies must provide one free report per year when you ask for it. You can also get one if a bank denied you based on that report.
- Dispute any errors. If you find an error, contact the reporting company in writing to dispute it.
- Ask about old balances. Some banks and credit unions require you to pay old charges and fees before you can open a new account.
Each bank or credit union also sets its own rules for how it uses your report, so a denial from one doesn’t mean the next will say no too.
Bottom line
To open a checking account, have a photo ID, a Social Security number or ITIN, and proof of address ready, and check whether the account needs an opening deposit. Once your regular bills come out of that account, your bank has a record of every bill you’ve paid on time.
That record stays with your bank, though. Checking accounts don’t report to the credit bureaus, so those payments don’t build your credit by themselves. Kikoff’s Credit Account reports your payments to Equifax, Experian, and TransUnion, with no credit check to sign up. Plans start at $5 a month.
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Disclaimer: The information provided in this blog post is meant for informational purposes only and does not constitute financial advice.
