What do you need to open a bank account?

A bank account is the most basic building block in personal finance, with nearly 95% of Americans owning one. Whether you’re opting for a new bank account, or thinking of getting one for the first time, the process is pretty straightforward: you’ll need to present a government-issued photo ID, provide some basic personal information and (sometimes) make an opening deposit.

What do I need to open a bank account?

You’ll need at least three things to open a bank account, maybe more, depending on the bank. If you’re going in person, double check you’ve got everything so you can get it done in one trip.

“I’d advise anyone looking to open an account to call ahead to make sure they have the necessary information ready and available,” said Jaspreet Chawla, the senior vice president of savings products at Navy Federal Credit Union.

Government-issued photo identification (ID)

Under federal law, banks and credit unions must verify your identity when you open an account. This is “for security purposes and to help the government fight terrorism and money-laundering activities,” said Lindsay Lawrence, executive vice president and chief operating officer for EverBank.

A government-issued photo ID helps satisfy that requirement. You can typically use your:

• Driver’s license.
• Military ID.
• State ID.
• Passport or passport card.
• Permanent resident card (also known as a Green Card or Resident Alien Card).
• Foreign National ID.
• Matrícula Consular Card.
• Tribal or Bureau of Indian Affairs ID.

It could be good to have a couple of these on hand when you go to the website or walk into a branch. “Some financial institutions may require multiple forms of government ID,” Chawla said.

If you want to open an account for your child who doesn’t have a photo ID, you can typically show their birth certificate or Social Security card instead.

Personal information

Under federal law, the financial institution also needs to know your:

• Legal name and date of birth.
• Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN).
• Contact information, such as residential mailing address, phone number and email.

The bank can also use your contact details to send messages, monthly statements and tax forms so you can monitor your account automatically.

If some of your personal information doesn’t match what’s on your ID (you moved recently, say), the bank may ask for another form of ID.

A second form of identification could be: 

• A recent pay stub or paycheck.
• Your latest property tax statement.
• The most recent utility bill with your name and address.
• Bank statement.
• Your birth certificate.
• Your Social security card.

Opening deposit

While many financial institutions don’t have an opening deposit requirement, some want you to fund the account immediately.

“The minimum initial deposit is typically $25 to $100 per account opening, depending on the financial institution,” Chawla said.

Be sure you have enough cash on hand to meet any requirement, plus however much you’d like to deposit. When you’re ready, you can typically use:

• Cash.
• Personal check.
• Debit or credit card.
• Electronic transfer from another bank account.

To do an electronic transfer, you’ll need the account number and routing number of the bank account from which you’re transferring the funds.

How much money do you need to open a bank account?

Minimum deposits vary by financial institution and can even differ by account type.

For example, Bank of America’s checking accounts have different opening requirements — you’ll only need $25 for the Advantage SafeBalance Banking account, but $100 for the Advantage Plus Banking. And Bank of America CDs require a minimum balance of $1,000.

“But typically you can open an account with as little as $25,” said Amy Colton, a wealth advisor and partner at Forefront Wealth Partners. “Some banks even offer accounts with no minimum opening deposit.”

Banks that don’t require an opening deposit for at least one checking account and one savings accounts include:

• Ally Bank.
• Axos Bank.
• Capital One.
• Discover Bank.

Oftentimes, student banking accounts don’t require a minimum. Just be sure to bring your student ID, report card or transcript to show that you’re eligible.

Types of bank accounts to consider

Here are the most common types of bank deposit accounts you can choose from:

• Checking. Designed for everyday use, checking accounts allow you to regularly deposit and withdraw money using a connected debit card or paper checks. Some offer cash-back debit card rewards or pay a low annual percentage yield (APY).
• Savings. You can put money that you don’t want to spend day-to-day in a savings account and have it earn more interest than what checking accounts typically offer. Note that some banks limit you to six transactions per month on the account and that rates fluctuate over time.
• Money market account (MMA). An MMA blends features of a savings and a checking account. You could earn a high yield and still make transactions with a debit card and checks. Yet, you may find high minimum balance requirements and transaction limits.
• Certificates of deposit (CD). In this type of specialized savings account, you typically make one upfront deposit and keep it in the account for a prespecified term, such as six months. In exchange for locking in your funds, you can earn a yield that’s usually higher than what other accounts offer. If you withdraw funds before the CD matures, you may pay a penalty.