How to open a checking account, what you’ll need and more

By Cyrus Vanover

A checking account is essential for managing your money and for your daily transactions. You'll need a checking account to receive direct deposit payments from your employer, to receive government benefits like Social Security and to pay your bills online. A checking account also helps you establish a financial history that can be used to verify your income for a loan or mortgage.

Opening a checking account is easy and only takes a few minutes. Here we answer your questions about the process. We'll go over how to open a checking account, how to select the right type of account, what you'll need and other important information to get you started.

Which type of checking account should you open?

Banks offer different types of checking accounts, and each has different features. To determine which type of account you'll need, consider how you will use it. Do you need a simple account with basic features, or are you interested in an account that earns interest and also offers perks like ATM fee refunds and cash-back rewards on debit card purchases? Be sure to carefully review your options to select the account that best fits your needs.

Some common checking accounts include:

• Basic checking: Offers essential features like check writing, debit card transactions and online banking. Accounts typically have low or no monthly fees and low minimum balance requirements.
• Interest-bearing checking: Interest is earned on the money in your account. A higher minimum balance may be required.
• Student checking: Designed for students who are building their financial histories. Accounts typically have no monthly fees and low minimum balance requirements.
• Business checking: Accounts are for business transactions only.

Keep in mind that your needs may evolve over time. For example, if you think you may later switch to a joint checking account with a spouse or partner, find out if a second account holder can be easily added. Your bank may also allow you to switch from one account type to another without having to apply for a new one.

What should you consider when opening a checking account?

A checking account's features should align with your needs and lifestyle. For example, if you travel a lot, a checking account that has a large network of surcharge-free ATMs will help you save on fees.

Some other factors to consider before opening an account may include:

Account fees: Some checking accounts have a monthly maintenance fee. They may also charge for overdrafts, paper statements, foreign transactions and ATM withdrawals. Find out whether the fees can be waived by maintaining a minimum balance or with direct deposit.

Overdraft protection: If you accidentally spend more than what's in your account, overdraft protection will automatically transfer funds from a linked savings account to cover the difference and complete the transaction.

Convenience: Consider the size and accessibility of the ATM network and the convenience of the branch locations.

Mobile availability: Make sure you can easily check your balance, transfer funds, pay bills and do other banking tasks online or while you are on the go with your mobile device.

What do you need to open a checking account?

Gathering the documents and information you will need to open a checking account can help you get started quickly. If you are applying online and have to stop to look for information during the process, you could lose the data you've entered and have to start over.

Here are five things you will need to open an account:

• A valid, government-issued photo ID, such as a driver's license or passport.
• Other basic information, such as your Social Security number or taxpayer identification number, and your phone number.
• An initial deposit is required by some banks, but others let you open an account without a deposit.
• Identification details for other applicants if you're opening a joint account.
• A parent or legal guardian to be an account co-owner if you're not yet 18.

How do you open a checking account?

Once you've selected a checking account and you've gathered your identification and other documents, you're ready to start the application process.

Here are the steps to open a checking account:

1. Complete the application: Most banks let you apply in person, online or with your mobile device. Be sure to review the account terms before submitting the application.
2. Receive account approval: Depending on how you apply and the bank, you will either receive automatic approval or notification by phone or email.
3. Make an initial deposit: If an initial deposit is required, you can transfer funds electronically from another account or use cash or a check.
4. Set up online banking: Enroll in online and mobile banking to access and manage your account.
5. Receive your debit card: You'll receive a debit card by mail, which you can use for transactions and ATMs.

Can you open a checking account online?

Most banks allow you to conveniently open a checking account online or with your mobile device from wherever you are. You will likely see a "get started" or "open an account" button on the bank's website directing you to a page where you can apply.

Just follow the prompts to complete your application. Be sure to monitor your email for additional account instructions and for information about receiving your debit card. Also, set up two-factor authentication to protect your account.

Do you need to have good credit to open a checking account?

While banks may screen your banking history when you open a checking account, they won't check your credit score. A credit check is only required when you apply for a loan, credit card or another line of credit where you'll be borrowing money.

A bank may review your checking and savings history to learn about your financial past, such as:

• Previous account closures
• Frequent overdrafts
• Consistent negative balances
• Bounced checks
• Fraudulent activity

If you've had a checking account closure for past banking issues, you may qualify to open a second chance checking account. This is a special account that lets you rebuild your banking history so you can later qualify for a regular checking account. Second chance checking accounts have basic features and may come with restrictions, like check-writing limits or no overdraft protection.

Ready to tackle your financial goals?

Whether it's saving for a future goal, getting savvy about budgeting, receiving notifications to balance your budget or automating payments to simplify your bills, there's a checking account that's just right for you. Learn more about all the ways Citizens is made ready to support you on your financial journey with a Citizens checking accounts.