How to open a bank account

• ✺Most employers require a bank account for direct deposit.
• ✺Having an account helps you avoid check-cashing fees and makes paying bills online possible.
• ✺Choosing the right account from the start can save you from avoidable fees.

1. 1Decide what type of account (or accounts) you need — checking, savings, or both.
2. 2Compare a few banks or credit unions for fees, minimum deposits, and insurance (FDIC or NCUA).
3. 3Gather your government-issued photo ID, Social Security number or ITIN, and proof of address.
4. 4Apply online or visit a branch, and answer identity-verification questions.
5. 5Deposit the opening amount, if one is required.
6. 6Set up online/mobile banking and activate your debit card when it arrives.

ITIN

Individual Taxpayer Identification Number — an alternative to a Social Security number for tax purposes that some banks accept.

Routing number

A code identifying your bank, used along with your account number for transfers and direct deposit.

ChexSystems

A reporting agency some banks use to check an applicant's banking history before opening an account.

Minimum opening deposit

The smallest amount of money a bank requires to open an account.

• ✗Showing up without acceptable ID or proof of address and having to make a second trip.
• ✗Not asking about monthly fees before opening the account.
• ✗Assuming you need perfect credit — checking accounts don't require a credit check, though a banking history check may apply.
• ✗Forgetting to set up direct deposit, which can unlock fee waivers at many banks.

Totally optional. Nobody's grading you.

1. 1.Compare two or three banks' fee schedules before choosing.
2. 2.Set up direct deposit once your account is open.

Related lessons:

• How bank accounts work
• How debit cards work
• Checking accounts versus savings accounts

• Consumer resource center — banking basics
  Federal Deposit Insurance Corporation (FDIC)(opens in a new tab)
• Deposit insurance
  FDIC(opens in a new tab)