How to Open a Savings Account: 4 Key Steps

By Ashley Kilroy. April 15, 2025 · 9 minute read

This content may include information about products, features, and/or services that SoFi does not provide and is intended to be educational in nature.

How to Open a Savings Account: 4 Key Steps

Opening a savings account is one of the first and most important steps toward building a strong financial foundation. Whether you’re saving for a major purchase, an emergency fund, or simply looking to grow your money over time, a savings account allows you to safely store your extra cash while earning interest.

The process of opening a savings account involves just a few simple steps. These include shopping around for a competitive rate and low fees, gathering the required documents, filling out an application, and potentially making an initial deposit. Here’s a simple step-by-step guide to finding and opening a new savings account.

Key Points

•   Opening a savings account involves choosing a bank, comparing interest rates, and understanding fees.

•   You’ll also need to gather necessary documents, such as a government-issued ID and proof of address.

•   Depending on the bank, you may be able to fill out the application online or you may need to visit a branch in person.

•   Some banks require you to make an initial deposit to open a savings account.

•   If your application is denied, ask the bank the reason for denial and review your ChexSystems report for errors.

4 Steps to Opening a Savings Account

Opening a savings account is a fairly simple process, but there are a few steps involved.

1. Find the Right Savings Account for You

Fees, interest rates, minimum balance requirements, and benefits like mobile banking can vary by the bank. So, it’s worth shopping around and exploring your options before deciding where to open a savings account. You may also want to expand your search beyond the larger, well-known banks. Online banks and credit unions, for example, often feature good rates, lower fees, and lower deposit requirements.

2. Gather Personal Information and Documentation

Next, you’ll want to gather all of the necessary information. Doing this beforehand will streamline the application process. Here’s what you typically need to open up a savings account:

•   Government-issued photo ID, such as a passport or driver’s license

•   Date of birth

•   Social Security number

•   Proof of address, such as a utility bill or bank statement

•   Phone number and email address

If you’re opening a joint account, ensure the co-owner provides the same information and documentation. Remember, requirements vary by bank, so check with your financial institutions to verify the necessary information.

3. Complete the Application

The next step, when thinking about how to open a savings account, is to complete the application. Some brick–and-mortar banks and credit unions may require you to visit a bank branch to open an account, while others let you complete the application online.

4. Fund the Account

Some banks and credit unions (though not all) require you to make an initial deposit to open a savings account, which can range anywhere from $25 to $100. If you’re opening the account in person, you can usually fund your account with a check or cash. If you’re opening the account online, you can likely add funds by transferring money from another account electronically or making a mobile check deposit.

Keep in mind that some savings accounts also require you to maintain a minimum ongoing balance in order to avoid a monthly maintenance fee. If that’s the case, you’ll want to make sure you put enough money in your account to avoid fees.

Earn up to 3.80% APY with a high-yield savings account from SoFi.

No account or monthly fees. No minimum balance.

9x the national average savings account rate.

Up to $3M of additional FDIC insurance.

Sort savings into Vaults, auto save with Roundups.


Choosing the Right Savings Account for You

Here is a snapshot of how the different savings accounts stack up.

•   Traditional savings account. This type of account is a simple savings option. Just keep in mind that basic savings accounts often don’t have the highest interest rates, and the institution may charge a monthly fee.

•   High-yield savings accounts. These accounts can pay 9x the national average interest rate for savings accounts. This helps your bank balance to grow faster over time without any additional effort on your part.

•   Kids’ and student savings account. Just like the name suggests, these accounts are tailored to kids and students so they can start building healthy savings habits. Some of these accounts are interest-bearing. However, there are usually age cut-offs, and they may require parental involvement. (Note that while SoFi offers student accounts for those who are 18 years or older, it does not offer custodial accounts at this time.)

•   Specialized savings accounts. This type of savings account helps you save for a specific goal, like holiday gifts or a vacation. However, it’s important to note that this type of account may come with restrictions. For example, if the account is designed to save for the cost of the winter holidays, you might only be able to pull money out once a year, like right before the holidays. Early withdrawals can incur a penalty.

•   Money market account. A money market account offers some of the benefits of a checking account, such as checks and a debit card. Usually, the interest rates on money market accounts are higher than those on a traditional savings account.

Understanding Savings Accounts

A savings account is a deposit account that lets you park your cash to save toward short-term goals and savings objectives. For example, you may use your savings account to save money for your dream vacation or to start building an emergency fund. Unlike a checking account, savings accounts are not meant to be used for everyday transactions.

In fact, in the past, Federal Reserve Board Regulation D limited the number of withdrawal transactions you could make to no more than six per month. While restrictions were lifted in April 2020, banks still have the right to limit the number of withdrawals you can take in a month. Examples of withdrawal transactions include overdraft transfers to checking accounts, wire transfers, debit card withdrawals, check withdrawals, and phone or computer transfers.

How Savings Accounts Work

Savings accounts work like this:

•   You open a savings account.

•   You deposit money into the savings account.

•   You earn interest on the balance in the savings account.

•   Then you can continue to accumulate interest as you contribute to your balance.

If you’re using the savings account to save for a specific goal, you’ll likely withdraw funds once you have reached that objective. So, if you’re saving money for a new car, you will take the money out when it’s time to pay for your new ride.

The interest rate and annual percentage yield (APY) attached to a savings account depends on the bank and type of account. The higher the APY, the more interest you’ll earn and the faster your account will grow.

For example, let’s say your savings account has a $2,000 balance, you contribute $100 monthly, and have a 3.00% APY. At the end of the first year your account balance will be 3,276.41. That’s a little over $76 worth of interest.

Pros and Cons of Opening Up a Savings Account

While savings accounts can be great places to park your money to save for the future, they also have some downsides. Here are the pros and cons of opening a savings account.

Pros of Opening Up a Savings Account Cons of Opening Up a Savings Account
Interest-bearing Potential monthly services fees
Access to banking online and in-person Withdrawal limits
Direct deposit available Relatively low rate of return
Insured by either the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) up to $250,000 per depositor, per insured bank, for each account ownership category.

Can You Be Denied a Savings Account?

Banks or credit unions may deny you a savings account if you have a track record of misusing bank accounts. Some examples of misuse include:

•   Unpaid fees

•   Unpaid negative balances

•   Bouncing checks

•   Suspected fraudulent activity

You may also get denied if you were a victim of fraud.

Once you apply for a bank account, banks may look at your ChexSystems report before approving or denying your request. ChexSystems is a consumer reporting agency that gathers information about problems you’ve had with bank accounts. If the bank uncovers harmful activities and denies opening an account, it must provide a reason for the denial.

Here’s what to do if you’re denied:

•   Ask the bank to reconsider. It never hurts to ask the bank or credit union to reconsider their decision.

•   Request the ChexSystems report. If the bank or credit union holds firm on their decision, request a copy of the ChexSystems report. All consumers are entitled to a complimentary copy of the report every 12 months. You can visit ChexSystems’ website or call 800-428-9623 to request a report.

•   Review the report for discrepancies or errors.Closely review the ChexSystems report. Look for errors or incorrect information. If you spot a mistake, you’ll want to contact both the bank that reported the inaccuracy as well as ChexSystems. Make sure to provide all supporting documentation to validate your claim.

•   Clean up your report. If you didn’t spot any errors, you’d want to start fixing any negative actions in the report. For example, if you have an unpaid overdraft fee, contact the bank and pay it off. Once you resolve any issues, they are removed from the report. On the other hand, if you have unresolved issues lurking, they will remain on your report.

•   Explore second-chance accounts. Some banks offer second-chance bank accounts, where they choose not to check a customer’s ChexSystems score or are willing to overlook a negative report. However, since these accounts cater to those with less than ideal banking backgrounds, they may charge higher fees or have more restrictions. So, look into the account requirements before moving forward with one.

The Takeaway

So, if you’re wondering if you should open a savings account, the answer is likely “yes.” Opening a savings account can be a great way to build strong saving habits and earn interest. Then, when you need the money later, you can access your cash effortlessly. What’s more, opening a savings account is relatively quick and easy. The process involves comparing banks and accounts, gathering the correct information, filling out the application, and making an initial deposit.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.


Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.

SoFi Checking and Savings: Helping you bank better and smarter.

FAQ

What do you need to open a savings account?

You must usually provide personal information like your Social Security number, date of birth, and home address. You will also need supporting documentation like a government-issued ID and a utility bill to prove your address. Depending on the bank account, you may also need to deposit the minimum balance requirement to open the account.

How much money do you need to open a savings account?

Large, traditional banks often require you to deposit between $25 and $100 to open a savings account (though some don’t have minimums). Traditional credit unions may require just $5 to open a savings account, while online banks and credit unions often have no initial deposit requirements.

Keep in mind that once your savings account is open, an institution could also have an ongoing minimum balance requirement to avoid a monthly maintenance fee.

Can you just open a savings account without a checking account?

Yes, you can open a savings account without a checking account at some institutions. However, having both can help you better manage your money since each account has different functionality.


About the author

Ashley Kilroy

Ashley Kilroy

Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.



Photo credit: iStock/AntonioGuillem

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2025 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.


SoFi members with Eligible Direct Deposit activity can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below).

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning 3.80% APY, we encourage you to check your APY Details page the day after your Eligible Direct Deposit arrives. If your APY is not showing as 3.80%, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning 3.80% APY from the date you contact SoFi for the rest of the current 30-day Evaluation Period. You will also be eligible for 3.80% APY on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi members with Eligible Direct Deposit are eligible for other SoFi Plus benefits.

As an alternative to Direct Deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Eligible Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving an Eligible Direct Deposit or receipt of $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Eligible Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Eligible Direct Deposit or Qualifying Deposits until SoFi Bank recognizes Eligible Direct Deposit activity or receives $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Eligible Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Eligible Direct Deposit.

Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

Members without either Eligible Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, or who do not enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days, will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Third Party Trademarks: Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

SOBNK-Q225-004

TLS 1.2 Encrypted
Equal Housing Lender