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Opening your first bank account generally involves deciding what type of account you need, comparing financial institutions and fees, gathering the required personal information and funding the account.
Before you get started, though, here's what to consider before opening a bank account and how to go through the process.
1. Account Type
| Checking Account | Savings Account | |
|---|---|---|
| Primary purpose | Everyday spending and bill payments | Setting money aside for goals and emergencies |
| Debit card access? | Yes | No |
| Check-writing access? | Yes | No |
| Earns interest? | Sometimes | Yes |
| Best for | Managing everyday money needs | Building an emergency fund or saving toward another specific goal |
Checking Account
A checking account is a deposit account designed for everyday money management. You can make deposits and withdrawals, make purchases with a linked debit card, pay bills, write checks and transfer money to other bank accounts.
Depending on the account, you may also get extra features such as ATM fee reimbursements, debit card rewards or interest on your balance.
Find Digital Checking Accounts
Savings Account
A savings account is a deposit account where you can store cash for short-term goals and financial emergencies. You'll typically earn interest on your balance, though the yield can vary significantly from one bank to another. You generally won't get a debit card or paper checks, though some banks may give you an ATM card.
Opening both a checking and savings account lets you use checking for your paycheck and bills while you build an emergency fund in savings.
2. Financial Institution Type
| Traditional Banks | Online Banks | Credit Unions | |
|---|---|---|---|
| Ownership | For-profit, owned by shareholders | For-profit, owned by shareholders | Not-for-profit, owned by members |
| Branch access | Yes | No | Yes |
| Fees | More likely to charge monthly service fees | Often low to none | Often low to none |
| Savings rates | Often lower | Often higher | Often higher than traditional banks |
| Best for | In-person service, broad branch and ATM access, and frequent cash deposits | Higher rates, lower fees and robust digital tools | Lower fees with member focus |
Traditional Banks
A bank is a for-profit financial institution that holds customer deposits and makes loans. You can usually visit a local branch for in-person help, and many banks also offer loans, credit cards and investment products.
Monthly service fees tend to be more common at these institutions, though you can sometimes get them waived with certain account activity.
Online Banks
Online banks handle everything through a website or mobile app. Their lower operating costs often translate into stronger savings yields and fewer account charges for customers. If you regularly handle cash, though, getting it into your account may take extra steps or may not be an option at all.
Credit Unions
A credit union is a not-for-profit financial institution owned by its customers, who are called members. Because a credit union exists to serve its members rather than outside shareholders, it can often pass along cheaper account fees and better yields on savings than a traditional bank.
That said, you'll need to meet membership requirements, which may be based on your location, school, employer or a family member's membership.
3. Monthly Fees
You'll be hard-pressed to find a bank account with no fees whatsoever. But it's not hard to find one that skips many of the common ones, leaving the rest nearly or completely avoidable. Here are some of the most common bank fees to compare:
- Monthly maintenance fee: Some accounts charge a fee each month just to keep the account open. Some banks will waive this charge if you meet deposit or balance requirements, while others skip it altogether.
- Overdraft fee: When you make a purchase or payment that pushes your balance below zero, some banks let it go through anyway and bill you an overdraft fee for fronting the money. Some banks let you avoid a fee by linking a savings account to cover any shortfall, while others won't charge a fee at all.
- Nonsufficient funds (NSF) fee: Instead of covering a payment you can't afford, a bank may decline it and still charge you an NSF fee.
- ATM fees: Withdrawing cash from a machine your bank doesn't own or partner with may cost you a fee from your bank plus a surcharge from the ATM operator. Certain accounts will refund ATM fees, up to whatever cap the bank sets.
- Other service fees: Depending on the institution, you may also pay for wire transfers, stop-payment requests or other services you likely won't need regularly.
Tip: Overdraft coverage for debit card swipes and ATM withdrawals is something you have to agree to, and declining it means those transactions can't trigger an overdraft fee. Checks and automatic payments work differently, and a bank can still charge you if one of those overdraws your account.
4. Minimum Deposit and Balance Requirements
An opening deposit is what you put in to open the account, while a minimum balance is what you need to keep in it over time. They're separate requirements, and an account can have one, both or neither.
Opening deposit requirements vary by account and institution, and many online banks and credit unions, and even some traditional banks, don't require one at all. Meanwhile, ongoing minimum balance requirements usually only come into play if you want to avoid a monthly service fee or earn interest on your balance.
5. ATM and Branch Access
If you get paid in cash or prefer in-person help, a bank or credit union with branches near you can make everyday banking easier. Getting cash into an online account usually takes more planning, though some let you deposit cash at certain ATMs or retail stores.
For cash withdrawals, check the size of the institution's fee-free ATM network. Many online banks partner with national ATM networks, such as Allpoint or MoneyPass, so you can withdraw cash for free at participating machines across the country.
In some cases, it could make sense to use more than one institution. For example, you could use an online bank account for everyday money management and an account with a local bank or credit union for cash needs. You'd then be able to transfer money between the two as needed.
Learn more: Can You Deposit Money at Any ATM?
6. Interest Rates and APYs
An annual percentage yield (APY) is the amount of interest you'll earn on your balance over one year, including the effect of compounding. Because interest on most savings accounts compounds daily or monthly, comparing APYs can help you see which account will grow your money faster.
As of September 2026, traditional savings accounts paid an average rate of 0.37%, according to the Federal Deposit Insurance Corp. (FDIC). However, some of the best high-yield savings accounts offer APYs upwards of 4%.
Note: Savings rates are typically variable, so the APY you see when you open an account can change over time.
7. Insurance
Deposit insurance protects your money if your bank or credit union fails. The FDIC insures deposits at member banks, and the National Credit Union Administration (NCUA) insures deposits at federally insured credit unions.
Both agencies automatically cover up to $250,000 per depositor, per institution, for each account ownership category. Most banks and credit unions are covered, but if you're unfamiliar with an institution, confirm before you open an account.
You can also look up a bank with the FDIC's BankFind tool or a credit union with the NCUA's Research a Credit Union tool.
How to Open a Bank Account
Most banks and credit unions allow you to apply online, and with traditional banks and credit unions, you can also do so in person. Here are the general steps in the process.
1. Gather the Required Information and Documents
Banks are required to verify your identity before opening an account in your name, so be ready to provide the following:
- Government-issued photo ID: Usually a driver's license, state-issued ID, military ID or passport, though some may accept a non-U.S. ID instead.
- Social Security number: If you don't have one, ask whether the bank will accept an individual taxpayer identification number, passport number, alien identification number or other government-issued identification number.
- Date of birth: The bank will use it, along with your photo ID and identification number, to confirm who you are.
- Proof of address: If your photo ID doesn't list your current address, you may provide a recent utility bill or mortgage statement, or a copy of your lease agreement.
- Contact information: Expect to provide a phone number and email address.
If you're joining a credit union, be prepared to document your membership eligibility, such as an employee ID card, a membership card for a participating organization or your relationship to a current member.
2. Fill Out the Application
The application typically only takes a few minutes. You'll enter your personal details, choose your account and review the account terms before you submit.
Banks and credit unions often screen applicants with ChexSystems, a reporting agency focused on how people have handled bank accounts in the past. If something from an old account turns up and leads to a denied application, you can order your report and dispute anything that's wrong. If everything checks out, you'll often get a decision within seconds.
3. Fund Your Account
Once you're approved, you can fund your account, either with cash (if you're in person), a debit card or a transfer from another bank. Use the funding option that works best for you.
Frequently Asked Questions
How Much Money Do You Need to Open a Bank Account?
The amount depends on the account and institution. Many online accounts have no opening deposit requirement, while other accounts require a small initial deposit. Before you apply, also check whether you'll need to keep a minimum balance to avoid monthly fees.
How Old Do You Have to Be to Open a Bank Account?
In most cases, you need to be 18 to have an account in your name alone. Minors can usually open a joint account with a parent or guardian, and parents can also open custodial accounts on a child's behalf.
How Many Bank Accounts Can You Have?
You can have as many bank accounts as you can manage, though some banks restrict how many accounts one person can open with them. It can make sense to have multiple bank accounts to take advantage of different features.
The Bottom Line
A bank account can come with a host of benefits and very few, if any, drawbacks. Before you open an account, though, take the time to understand your options and needs to determine the best fit.
Keep in mind that checking and savings activity generally doesn't show up on your credit reports, so a typical bank account won't help you build credit. One exception is the Experian Smart Money™ Digital Checking Account. The Experian Smart Money™ Digital Checking Account & Debit Card can help you build credit without debt by linking to Experian Boost®ø®ø, which gives you credit for eligible bill payments after three months of payments. See terms at experian.com/legal.