Signing Up for a New Account
Opening A New Account
You can open a bank account online or in person. The process can take anywhere from minutes to a couple of days.
Opening a bank account is something you can do relatively quickly, either online or at a bank or credit union branch.
Generally, you can expect the bank to ask you to fill out an application for a new account—that’s usually the first step. From there, you’ll need to verify your identity and provide any other information the bank asks for, such as your address or phone number.
If the bank requires a minimum deposit, you’ll have to make that deposit when you open your new account. If you’re opening an account online or making your first deposit using an ACH transfer from another bank, you’d need to give the new bank your routing number and account number to complete the transfer.
Some banks require further verification before you can start using your new account if you’re linking it to an account at another financial institution. For example, the bank may make one or two small test deposits into your new account. You will have to verify these amounts to activate your account, which can take a day or two.
Also, keep in mind that there may be a holding period on your initial deposit. For example, if you’re making your first deposit by check, it could take a few days for the check to clear. You may also be waiting several days for your debit card or first order of checks to arrive.
How Long Does It Take To Open a Bank Account?
Opening a bank account is generally a fast process that can take anywhere from a few minutes to a few days, depending on the financial institution and the type of account. Most banks can open accounts on the same day when you apply in person.
Opening a bank account online can take minutes, but you’ll have to wait five to seven business days for a physical debit card if you plan to use the account for purchases at retailers that don’t support digital wallets.
How Much Does It Cost To Open a Bank Account?
When opening a new bank account you’ll need to consider how much the bank requires you to deposit initially, generally referred to as a minimum opening deposit. This amount can vary by bank and credit union.
Some banks, for example, may let you open a bank account with no minimum deposit required or a minimum deposit as low as $1. Others may expect you to have amounts ranging into the thousands of dollars to open a new account.
If a bank or credit union requires a minimum deposit, there are a few ways you can make it. For instance, you can use cash or a check that’s written out to you to make your initial deposit. If you already have a bank account, you also can use an ACH transfer to move money from it to your new account electronically.
How Old Do You Have to Be to Open a Bank Account?
Typically, you need to be at least 18 years old to open a bank account on your own.
Children’s Accounts
Some banks and credit unions offer teen checking and student checking options for kids under 18. These usually require a parent or guardian’s signature to open.
Financial institutions may also offer savings accounts for kids, with parents acting as the custodian until the child turns 18. Once the child reaches their 18th birthday, they automatically assume ownership of the account.
Joint Accounts
A joint bank account has more than one owner. You may open a bank account with your spouse if you’re married, or you may set up a joint checking account with an aging parent if you’re helping them manage their finances.
Joint accounts typically belong to both account owners equally. This means you both have access to funds for making purchases or withdrawals and you can both add to the account. Normally, both people have to be 18 or older to open a joint account. Your financial institution may, however, offer joint accounts for parents to share with minor children.
Closing Your Old Account, If Needed
If you already have an existing bank account and you’re moving to a new bank, you may need to close the old account. There are a few important things to do here to make sure the transition is a smooth one, including:
- Update your direct deposit information with your employer, so your paychecks go to the right bank.
- Update direct deposit information with anyone else you receive money from, such as government benefits or child support.
- Switch any automatic bill payments to your new account.
- Cancel recurring transfers between linked accounts.
- Update your bank account information in mobile payment apps.
- Set up new text and email notifications for your new account.
- Destroy paper checks and the debit card linked to your old account.
You also should consider what needs to be done with any accounts you plan to leave open at your previous bank.
For example, if you have CD accounts there, think about what you want to do with them once they mature. You could roll them over into new CDs at the same bank, but if your new bank offers a higher annual percentage yield (APY), you may be better off withdrawing your savings and starting fresh.
It’s also a good idea to get a written statement from the old bank specifying that your account is closed. This can help you avoid situations where the bank may reactivate your old account, triggering fees.
Bottom Line
Opening a bank account is relatively straightforward once you decide where to bank and which type of account you want to open. Start by assessing your current financial situation, then choose the option that best matches up with your needs.