What you need to do to open a savings account

Opening a savings account takes about 15 to 30 minutes and requires three things: a government ID, proof of your address, and money to deposit. You can open an account in person at a bank or credit union branch, or online through their website. The bank will ask you to choose an account type (usually just "savings"), set a PIN or password, and make your first deposit—which can be as small as $1 at many banks, though some require $25 or $100.

The process is the same whether you are 18 or 65. If you are under 18, a parent or guardian will need to co-sign the account, and it will be called a youth or minor savings account until you turn 18. After you open the account, you get a debit card or passbook, online access, and the ability to move money in and out whenever you need it.

Key Takeaways

  • You will need a government-issued ID, proof of your current address, and an opening deposit (often $1 to $100) to open a savings account.
  • Banks and credit unions both offer savings accounts with similar features, but credit unions often have lower fees and lower minimum balances.
  • You can open an account online in 10 minutes or in person at a branch, and you can start depositing and withdrawing money the same day.
  • If you are under 18, a parent or guardian must co-sign, and the account will convert to a regular savings account when you turn 18.

Gather your ID and proof of address before you go

Banks are required by federal law to verify who you are before they open an account. Bring a government-issued photo ID—a driver's license, state ID card, or passport. If you do not have one, some banks will accept a tribal ID or military ID instead; call ahead to ask.

You will also need to prove where you live. A recent utility bill, lease, mortgage statement, or bank statement with your name and address works. The document usually needs to be from the last 30 to 60 days. If you do not have one, a government-issued ID with your current address on it (like a driver's license) counts as both ID and proof of address.

If you are opening an account online, you will upload photos of these documents or answer security questions instead of showing them in person. The process is faster but may take an extra day or two for the bank to verify everything.

Decide between a bank and a credit union

Both banks and credit unions offer savings accounts, but they work differently. A bank is a for-profit business owned by shareholders. A credit union is a nonprofit owned by its members—the people who have accounts there. This difference matters for fees and interest rates.

Credit unions typically charge lower monthly fees (or no fees at all) and pay slightly higher interest on savings. Banks often have more branches and ATMs, and their online tools are sometimes easier to use. If you want the lowest fees and do not mind a smaller network of locations, a credit union is usually the better choice. If you travel a lot or want the most convenient access, a bank may be better.

Both are equally safe. Banks are insured by the FDIC (Federal Deposit Insurance Corporation), and credit unions are insured by the NCUA (National Credit Union Administration). Both may provide that your money is protected up to $250,000 if the institution fails.

Choose between opening in person or online

Opening in person takes 20 to 30 minutes. You walk into a branch, show your ID and proof of address to a teller or banker, answer a few questions about yourself, and make your first deposit. You leave with a debit card (or a temporary one) and online login information. You can start using the account the same day.

Opening online takes 10 to 15 minutes and you can do it from home. You fill out a form with your name, address, phone number, and Social Security number. You upload photos of your ID and proof of address. You choose a username and password, set a PIN, and make your first deposit using a debit card or bank transfer. The account is usually ready to use within a few hours, though some banks take up to one business day to verify your documents.

Online is faster if you are comfortable uploading documents and do not need a debit card immediately. In person is better if you want to ask questions or prefer to hand over documents face-to-face. Many people do both: open online for speed, then visit a branch later to pick up a physical debit card.

Make your first deposit

Most banks require a minimum opening deposit of $1 to $100. Some have no minimum at all. You can deposit cash, a check, or money from another bank account.

If you are opening in person, you can hand cash or a check to the teller. If you are opening online, you will transfer money from another bank account using your routing number and account number—information you can find on a check or by logging into your current bank. Some banks also let you deposit a check by taking a photo of it through their mobile app, though this usually takes a few business days to clear.

After your first deposit, you can add money whenever you want through direct deposit (your employer sends your paycheck straight to the account), transfers from another bank, ATM deposits, or by handing cash to a teller.

Set up online access and a debit card

Once your account is open, the bank will give you a username and password for online banking. Write these down or save them in a password manager—do not share them with anyone. You will use this login to check your balance, transfer money, pay bills, and set up alerts.

You will also get a debit card, either immediately (if you opened in person) or within 7 to 10 business days (if you opened online). The card lets you withdraw money from ATMs and make purchases, though most people use a savings account mainly for saving, not spending. Some banks charge a small fee if you use an ATM that is not theirs; credit unions often waive this fee for their members.

Set up at least one alert: ask the bank to notify you by email or text when your balance drops below a certain amount, or when a large withdrawal happens. This helps you catch fraud and avoid overdrafts if you accidentally spend from savings instead of checking.

Understand what happens after you open

Your savings account is now active. Money you deposit sits there and earns interest—a small percentage that the bank pays you for letting them use your money. The interest rate varies by bank and changes over time. Right now, rates range from nearly 0% at some banks to 4% or 5% at online banks, depending on the account type and the bank's current offer.

You can withdraw money anytime without penalty. There is no lock-in period. However, federal rules limit you to six withdrawals per month from a savings account (the limit used to be stricter, but it has loosened). If you need to withdraw more than that, you can, but the bank may charge a fee or convert your account to a checking account.

Keep your account open even if you do not use it for a while. Banks do not charge you for inactivity, though some may close accounts that have had no deposits or withdrawals for several years. Check your statements once a month to make sure the balance is what you expect and to catch any errors.

Frequently Asked Questions

Do I need a Social Security number to open a savings account?

Yes. Banks are required to collect your Social Security number for tax purposes and to check you against fraud databases. If you do not have a Social Security number, some banks will open an account using an ITIN (Individual Taxpayer Identification Number) instead, but this is less common. Call ahead to ask.

What if I do not have a government ID?

Some banks will open an account with a passport, tribal ID, or military ID. A few will accept a combination of documents—like a utility bill plus a school ID—if you do not have a photo ID. Call the bank or credit union you want to use and ask what they accept.

Can I open a savings account with no money?

Most banks require at least $1 to $100 as an opening deposit. A few online banks have no minimum. If you do not have money to deposit right now, look for a bank that advertises "no minimum opening deposit" or ask a teller whether they can waive the requirement.

How long does it take to open an account online?

The application itself takes 10 to 15 minutes. Your account is usually ready to use within a few hours, though some banks take up to one business day to verify your documents. Your debit card arrives by mail in 7 to 10 business days.

What is the difference between a savings account and a checking account?

A savings account is meant for money you want to keep and grow. A checking account is meant for everyday spending—paying bills, buying groceries, getting cash. Savings accounts earn interest; checking accounts usually do not. You can have both at the same bank.