Opening your first US bank account
In short: to open a US bank or credit union account you usually need a government photo ID, a US address and a taxpayer number or, if you don't have one, details from another government ID such as a passport. Compare monthly fees and minimum balances before you choose, and check the bank is FDIC-insured (or the credit union NCUA-insured).
What banks ask for
Federal rules require banks to check who you are before opening an account. They must collect at least your:
- Name and date of birth
- Address (a residential or business street address)
- Identification number: for US persons, a Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN). If you are not a US person and don't have one, the bank can use the number and country of another government-issued document, such as a passport.
Each bank sets its own extra requirements, and some ask for two forms of ID. Call or check the bank's website first, and bring your passport, any US immigration documents and proof of address (a lease or utility bill).
Checking or savings?
- Checking account: for everyday spending, with a debit card, bill payments and direct deposit of your pay.
- Savings account: for money you want to keep aside; it usually pays some interest.
Many people open both at the same bank so they can move money between them easily.
Fees to watch
- Monthly maintenance fees, often waived if you keep a minimum balance or set up direct deposit.
- Overdraft fees when you spend more than you have. For ATM withdrawals and one-time debit card purchases, a bank can only charge an overdraft fee if you have opted in. You can say no.
- Out-of-network ATM fees and fees for international transfers.
Look for accounts with no overdraft fees and a low or no monthly fee. Some banks and credit unions offer low-cost accounts certified under the Bank On standards, which are designed to avoid overdraft fees.
How your money is protected
Deposits at FDIC-insured banks are covered up to $250,000 per depositor, per insured bank, for each account ownership category. Credit union deposits have the same level of cover through the NCUA. You can check a bank with the FDIC's BankFind tool before you open an account.
Bank or credit union?
Credit unions are member-owned and often have lower fees, but you need to be eligible to join (for example, where you live or work). Banks often have more branches and ATMs. Both can be a good choice; compare the accounts, not just the name.
Handy tools
- Monthly budget planner: see what is left each month and how your spending splits up.
General information, not financial advice. Rules, fees and rates change and depend on your situation. Check with your bank, the provider or a qualified professional before you decide.
Sources
- eCFR: 31 CFR 1020.220, customer identification programs for banks
- FDIC: Understanding deposit insurance
- FDIC: BankFind Suite
- NCUA: Share insurance coverage
- CFPB: Overdraft fees and opting in
- Cities for Financial Empowerment Fund: Bank On national account standards