YinYang / Getty Images
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Opening a bank account might seem daunting, but it’s actually more straightforward and accessible than many people expect. Curious about what traditional requirements you can actually skip? Keep reading to learn about five surprising things that aren’t necessary for opening a bank account.
5 Things Banks Don’t Need When You Open an Account
Opening a bank account doesn’t have to be complicated. Here are five things you won’t need when you get started.
A High Initial Deposit
Believe it or not, the barrier to entry for opening a checking account is quite low in many cases. Numerous banks and credit unions allow you to open an account with minimal amounts, sometimes as low as $0 to $25. This flexibility makes it possible for a wider range of people to begin managing their finances effectively, without the need for a large sum of money upfront.
A Perfect Banking History
While a history of overdrafts or unpaid fees can affect your ability to open an account, many banks offer “second chance” banking programs. These accounts give you the opportunity to start fresh and prove your financial responsibility. It’s a chance to rebuild your banking history and work towards healthier financial habits.
When researching banks, inquire about any second chance programs they may offer — these accounts can be pivotal in getting you back on track.
Do Banks Check Credit When Opening a Checking Account?
While banks typically don’t require a credit check in the traditional sense — like they would for a loan or credit card — they often perform a softer inquiry through a system called ChexSystems.
This service checks your banking history rather than your credit score and reports on any past banking issues such as overdrafts, unpaid fees or account mismanagement.
This means that while your credit score itself isn’t usually evaluated for opening an account, your financial history with other bank accounts might be.
Minimum Balance Requirement
Gone are the days when all accounts came with a stringent minimum balance requirement. Today, many banks offer accounts that don’t require you to maintain a specific amount, giving you the freedom to use your funds as you see fit without the worry of penalty fees.
This shift towards more user-friendly account terms is especially beneficial for those who may not have a steady income or are working with limited financial resources.
Physical Presence in a Bank
With the rise of digital banking, it’s no longer necessary to visit a bank branch in person to open a new bank account. Most financial institutions now provide the option to start an account online, streamlining the process considerably. This convenience means you can set up an account from the comfort of your home, or even on the move, using a smartphone or computer. It’s a faster, more accessible way to embark on your banking journey.
A Linked Account
While it can be advantageous to have your savings, checking and CD accounts under one roof for ease of management and potentially better rates, it’s not a necessity for opening a new account. You have the liberty to choose only the services you need.
If your current goal is simply to have a checking account for daily transactions, you can do so without the pressure to open additional accounts. This approach allows you to tailor your banking experience to suit your immediate needs and preferences.
Final Take
Knowing what you don’t need to open a bank account can make the whole process feel less intimidating and more inclusive. As you choose a bank, think beyond just opening the account — consider how the bank’s features and services can help you grow financially in the long run. With the right information, you can easily find an account that fits your lifestyle and financial goals, free from unnecessary complications.
FAQ
Here are the answers to some of the most frequently asked questions about opening a bank account.
- Will a bank do a credit check when you open an account?
- Most banks do not perform a traditional credit check, like the ones done for loans or credit card applications, when you open an account. However, they may conduct a soft inquiry through services like ChexSystems to review your banking history, which does not affect your credit score.
- What can disqualify you from opening a bank account?
- Factors that could disqualify you from opening a bank account include the following:
- A history of unpaid overdraft fees
- Multiple instances of insufficient funds
- Fraudulent activity
- Accounts closed by a bank for misuse
- Banks use services like ChexSystems to screen for these issues.
- Factors that could disqualify you from opening a bank account include the following:
- Can you be denied when opening a checking account?
- Yes, it's possible to be denied a checking account if the bank's review of your banking history through ChexSystems or similar reporting services reveals significant negative entries, such as frequent overdrafts, unpaid fees or fraud.
- Does a bad credit score affect your ability to open a checking account?
- A bad credit score does not usually directly impact your ability to open a standard checking account, as most banks do not perform a hard credit check. However, if you're applying for a checking account with overdraft protection or credit features, the bank may review your credit score and a poor score could influence their decision.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
