How to Open a Checking Account: A Step-by-Step Guide

A checking account is a type of bank account that allows you to deposit and withdraw your money quickly and easily. Money stored in a checking account is typically used for everyday spending and expenses, like paying bills.

Most checking accounts come with a debit card, which you can use to make purchases in stores or online or to take out cash from an ATM. Your debit card is directly linked to your checking account.

Since checking accounts are designed to give you easy access to your money, they usually don’t earn much interest. Consider keeping your extra cash in a high-yield savings account to maximize your earnings.

Many banks offer several types of checking accounts. Before opening one, determine the type that best meets your needs.

• Traditional checking accounts typically issue a debit card and paper checks. They provide online bill pay services and overdraft protection. Many don’t charge fees or will waive the fee if you meet certain conditions.
• Premium checking accounts provide the same perks as traditional accounts, plus some extras like waived ATM fees or discounted rates on loans. For a premium account, you may be required to maintain a higher minimum balance or pay a fee.
• High-interest checking accounts have a higher annual percentage yield (APY) than traditional accounts. The APY may increase if you maintain a higher balance or combine your checking account with an investment account.
• Student checking accounts are typically designed for young people and may require a parent to be a joint account holder.
• Senior checking accounts are meant for older adults. They can offer perks like ATM fee reimbursement and waived monthly maintenance fees.
• Business checking accounts are intended for business owners. They issue a business debit card and checks, and help you keep your business revenue separate from your personal finances.

Compare the benefits of a checking account to decide which type best suits your needs.

Ready to get started? Here’s how to open a checking account in three simple steps.

1. Choose your financial institution and account type

First, choose the bank and type of checking account that best meets your needs. Consider various features, including account fees, minimum deposits, ATM locations, and mobile banking services.

As you research, look for a bank that’s insured by the Federal Deposit Insurance Corp (FDIC) or a credit union that’s insured by the National Credit Union Administration (NCUA). The FDIC and NCUA both insure deposits up to $250,000 per depositor, per institution, per ownership category.^1,2

2. Complete an application

Most banks let you apply online. Head to the institution’s website and look for the application page. Online-only banking platforms typically let you open an account completely online in just a few minutes.

During the application, you’ll typically provide personal information and a few documents, such as your:

• Full name
• Date of birth
• Social Security number
• Contact details
• Government-issued photo ID
• Proof of address, like a utility bill or lease agreement

If you want to open a joint bank account with a spouse, you’ll both need to provide the required information and documents.

After you fill out and submit your application, the financial institution will verify your identity and may review your banking history. If approved, you’ll receive documents and account materials in the mail, like a debit card and checkbook.

3. Fund your account and set up direct deposit

Once your application is approved, you’ll need to provide funding. Some banks and credit unions allow you to open a bank account with no money, while others ask for a minimum deposit of $25 to $100.³

Set up direct deposit to have your paycheck sent directly to your account. Not only is direct deposit an easy way to get paid, but it may also help you avoid monthly fees – some financial institutions waive fees for doing so.

To set up direct deposit, provide your employer with your new account information and fill out a direct deposit form.

Not all checking accounts are the same, so consider multiple options before you pick one. As you compare checking accounts with different banks, consider these important features:

• Balance minimums. A checking account may require a minimum opening deposit or daily balance.
• Fees. Checking account fees, including monthly maintenance fees and overdraft fees, can vary greatly from place to place (more on this below).
• Online and mobile banking services. Online and mobile banking should be user-friendly and allow you to do everything you need to manage your money, whether it’s checking your account balance or paying bills.
• ATM access. Some banks have larger ATM networks than others, and some charge fees for ATM withdrawals at another bank’s machine.
• Interest rates. If you’re considering a rewards or interest checking account, it’s helpful to know what APY you could earn, along with any requirements for earning interest.
• Online vs. in-person banking. Online banks often charge fewer fees than traditional banks, but traditional banks offer the option to visit branches in person.
• Account enrollment. Most banks allow you to open a checking account online, while some may require a visit to a branch to apply.
• Other products. You may want to open other accounts, such as a savings account. Consider what else a bank offers besides checking accounts.

Common checking account fees to watch for

Whether you want to open a checking account online or at a branch, it’s important to be aware of potential fees. Here are some of the most common checking account fees:

• Monthly fees. Some banks charge monthly maintenance fees or service fees just for having an account. You may be able to waive these fees by meeting a minimum balance requirement or enrolling in direct deposit.
• Overdraft fees. You may be charged an overdraft if you don’t have enough money to cover withdrawal transactions, though some banks offer overdraft protection. A typical overdraft fee is $35 per transaction.⁴
• Out-of-network ATM fees. If you use another bank’s ATM to withdraw cash, your bank could charge you a fee.
• Stop payment. Your bank may charge a stop payment fee if you ask them to stop processing an outgoing transaction, such as a bill payment or a check.
• Paper statement fee. To encourage enrollment in electronic statements, some banks charge a small fee to receive paper statements.
• Foreign transaction fee. Your bank may charge a foreign transaction fee when you use your debit card or withdraw cash in a foreign country.

Should you open an online checking account or stick with a brick-and-mortar bank? Both have pros and cons to consider.

Online checking accounts often come with the following advantages and disadvantages:

• Pros: Lower (or no) fees, higher interest rates, and 24/7 access to your account through mobile and web apps.
• Cons: No physical branches (which can make depositing cash more difficult) and no face-to-face customer service.

On the other hand, here are some pros and cons of traditional checking accounts:

• Pros: In-person customer service at a physical branch, easier cash deposits, and the ability to get a cashier’s check.
• Cons: Potential fees (or requirements to avoid fees) and lower interest rates

Consider all the pros and cons to determine if an online bank or a traditional bank would be the better choice for you.

A checking account is a foundational tool for money management. Whether you need to pay bills, buy groceries, or set aside a little money in savings, it all starts with having a checking account. Many banks make it easy to open a checking account online in a few simple steps.

Once your account is set up, find out how much money you should keep in your checking account.