How to open a savings account: 5 steps to take

Written by

Karen Bennett

and

Marcos Cabello, J.D.,

Edited by

Hanna Horvath, CFP,

Reviewed by

Robert R. Johnson,

Expert verified

Published on January 28, 2026 | 4 min read

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Person imagining a piggy bank made out of cash.

Key takeaways

Opening a savings account requires a government-issued ID, Social Security number, and proof of address. Most banks let you complete the process online in under 15 minutes.
Choose a high-yield savings account over a traditional one if you want your emergency fund to actually grow — the difference could mean earning $400 vs. $4 on a $10,000 balance annually.
If you’ve been denied a bank account before, second-chance accounts from banks like Wells Fargo, Varo, and Chime can help you rebuild your banking history.

A savings account is one of the simplest financial tools you can use, and one of the most powerful for building an emergency fund or reaching short-term goals. The best accounts today pay rates that actually outpace inflation, meaning your money grows in real terms rather than losing purchasing power.

Summary of how to open a savings account:

Shop around for accounts with high yields and low fees.
Gather required documents like your ID, Social Security number, and proof of address.
Decide between an individual or joint account based on your needs.
Submit your application online or in person.
Make your first deposit

Opening a savings account: Step-by-step

It’s relatively easy to open a savings account at most banks and credit unions, although it usually takes several steps.

1. Choose the right savings account for you

Before you open your account, make sure you’ve chosen the right bank for your needs. Key features when making your choice may include:

Competitive annual percentage yield (APY)
Low or no minimum balance requirement
Low or no monthly fee, or one that’s easy to avoid
Accessibility of fee-free ATMs
Accessibility of branches
Availability of online and mobile banking services
Federal Deposit Insurance Corp. (FDIC) or National Credit Union Administration (NCUA) insurance coverage

Online banks typically offer significantly higher rates than traditional brick-and-mortar banks because they have lower overhead costs.

See top rates: Bankrate's list of the best high-yield savings accounts

2. Gather your documents

You’ll need the following information ready—for yourself and any joint account holders:

Government-issued identification, such as a driver’s license or passport
Social Security number
Date of birth
Address (and proof of address, if your ID lists a previous address)
Contact information
Bank account information to fund your new account, if applicable

Most online applications take 10-15 minutes if you have everything prepared.

3. Choose a joint or individual account

Open an individual account if you want a savings account just for yourself. A joint account is an account owned with another person, such as your spouse or your child.

Joint accounts offer some benefits:

They make it easier for your spouse or child to access funds that are shared.
The presence of a joint owner can provide a higher level of FDIC insurance (up to $500,000 instead of $250,000, since each person has $250,000 worth of deposit insurance in the joint account ownership category).

4. Complete the application

Complete your application with all the required information and wait for the bank to approve your account. This usually happens quickly, within one or two business days. The bank will notify you once your account has been created, or if your application has been denied.

5. Fund your account

You may need to make an initial deposit when starting up a savings account. You can usually fund the account with cash or a check, if you’re opening the account in person. To deposit money electronically, you can often make a mobile check deposit or transfer funds from a linked account.

Deposit enough money to avoid potential fees

Some savings accounts charge a monthly maintenance fee that can eat away at your savings. Most banks offer ways to waive the fee, though, including by having a certain minimum balance in the account. Make sure you always keep a sufficient balance in your account to avoid paying a fee.

Why you may want to add a beneficiary

A beneficiary is the person who receives your account funds if you pass away. Naming one ensures your money goes where you intend—without the delays and costs of probate.

Even joint account holders should designate a beneficiary. If both owners pass away, the beneficiary ensures the funds transfer smoothly to the right person.

How to build a savings plan that works

Opening the account is step one. To actually grow your savings:

Set a specific goal. Whether it’s a $1,000 emergency fund, a vacation, or a home down payment, having a target keeps you motivated.
Automate your deposits. Set up recurring transfers from your checking account — even $50 per paycheck adds up. Automation removes the temptation to skip a month.
Match your account to your goal. If you need quick access (like for emergencies), keep your savings at the same bank as your checking for fast transfers. If you’re saving for something specific and don’t need immediate access, shop around for the highest rate, often found at online banks.

Your choice of savings account — and bank — can depend upon your reason for saving money

If you want to build an emergency fund that you can access at a moment’s notice, opening an account with a bank where you also have a checking account could make sense. Some banks also offer higher APYs, often called relationship rates, for maintaining multiple accounts at the same bank.

If you’re saving for a specific goal — such as a car or a down payment on a home — and don’t need easy access to the funds, it can make more sense to shop around for the best rates, which might be found at an online bank. Though ideally, your emergency fund is also in a high-yield savings account so your funds can grow quicker.

See more: Bankrate’s picks for the best checking accounts

How to choose the best savings account

Here are some features to look for when choosing a savings account.

High APY: The higher the APY, the faster your savings will grow. Keep in mind that APYs on savings accounts are typically variable, which means the rate can change at any time.

No monthly fees: Some banks charge a monthly maintenance fee unless you meet certain requirements. If you end up paying the fees, that could eat into your savings significantly.

FDIC or NCUA insurance: It’s important to consider banks and credit unions that are insured up to the limit allowed by law. For banks, these will be accounts insured by the FDIC. For credit unions, these will be accounts insured by the NCUA.

What to do if you can’t open a savings account

Many banks use ChexSystems, a consumer reporting agency, when making approval decisions. If your bank uses ChexSystems, and you’re denied an account, you can request a disclosure report to find out why. You can also dispute any errors you find that may be negatively impacting your report.

If your banking history is preventing you from opening a savings account, you can look for a bank that offers second-chance checking accounts. While not the same as a savings account, second-chance accounts are more widely accessible. These accounts often come with standard checking account features, such as ATM access, bill pay and mobile banking. Usually, if you can keep your account in good standing for a period of time — often 12 months — you’ll be able to upgrade to a standard checking or savings account.

Banks and financial technology (fintech) companies that offer second chance accounts include Wells Fargo, Varo Bank and Chime.

Bottom line

Savings accounts are valuable tools for people who want to set aside money for a goal or an emergency fund. Consider all of your options, including local banks and online banks, and look for the account that offers the best interest rates at the lowest cost. Taking the time to do some comparison shopping can help you get the most out of your money.

FAQs

Yes, many banks and credit unions allow you to open a savings account online by completing an application and uploading or entering your required information, such as your Social Security number and ID details. You’ll typically fund the account with an electronic transfer from another bank or a mobile check deposit.
A second-chance checking account is designed for people who’ve been denied traditional accounts due to past banking issues. These accounts often come with basic features like a debit card, ATM access and bill pay. If you keep the account in good standing for a set period (sometimes 12 months), you may qualify to upgrade to a standard checking account.
The only difference between a high-yield savings account and a “standard” savings account is a higher yield, although some accounts with relatively low yields still call themselves high-yield savings accounts. That noted, the process for opening these accounts is usually the same as opening a standard savings account. Keep in mind that high-yield savings accounts are usually offered at online banks:
1. Compare banks and credit unions offering competitive APYs.
2. Gather required documents like your ID, Social Security number and proof of address.
3. Decide between an individual or joint account based on your needs.
4. Submit your application online or in person.
5. Make your first deposit and set up online access.
Typically, you must be at least 18 years old to open a savings account on your own. Minors can still have savings accounts, but they’ll need a parent or guardian to open a custodial or joint account with them until they reach legal age. If you’re interested in opening an account for those under 18, check out Bankrate’s list of the best savings accounts for kids.