How to Open a Savings Account: Step by Step

Margarette Burnette is a NerdWallet authority on savings, who has been writing about bank accounts since before the Great Recession. Her work has been featured in The Associated Press , USA Today and other major newspapers. Before joining NerdWallet, Margarette was a freelance journalist with bylines in magazines such as Good Housekeeping, Black Enterprise and Parenting. She is based near Atlanta, Georgia.

Reviewed by Kathleen Burns Kingsbury

Kathleen Burns Kingsbury

Wealth psychology expert and coach Kathleen Burns Kingsbury, founder of KBK Wealth Connection and host of the Breaking Money Silence podcast, is an internationally published author and speaker. As an expert on financial psychology, Kathleen has appeared on television and her work has been featured in The New York Times, The Wall Street Journal, "PBS NewsHour," Money magazine, Today Money, Forbes and CNBC. Kathleen served as an adjunct faculty member at the McCallum Graduate School at Bentley University from 2009 to 2019 and currently teaches at Champlain College.

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How to Open a Savings Account: Step by Step

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Knowing how to open a savings account means knowing how to make your money work for you. Cash in a savings account typically earns interest — potentially near 5%, which is better than the national average savings rate of 0.46% . Ready to get started? Here are the steps to take, followed by tips on finding the best option.

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7 steps to take to open a savings account

1. Choose how to apply

Depending on the institution, you could apply online, by phone, in person or even by mailing an application. If you apply online, the process can take 10 to 20 minutes.

» Need to compare accounts? Read NerdWallet’s list of best savings rates .

2. Gather your identification

For the application, you will likely need to provide your Social Security number (or tax ID number) and information from a government-issued ID, such as a driver’s license or passport number.

3. Provide contact details

Along with your ID number, expect to enter your contact information, including your first and last name, phone number and address — typically, you must be based in the United States. You may also be asked for information including your email address and date of birth.

4. Select a single or joint account

Let the institution know if you will be opening the account by yourself or with someone else. You’ll need the information from the previous steps for anyone else whose name will be on the account.

5. Accept the terms and conditions

This is where the bank asks you to confirm that you read disclosure documentation describing fees, liabilities and how account interest is calculated. Ideally, you have selected an account that earns high rates and has no or low monthly service charges. This is your chance to double check.

6. Submit your application

You may get an acknowledgement within minutes when you apply online, but it can take between two and five business days for the bank to verify your information, open the account and give you access.

7. Fund your new account

Many banks require a minimum initial deposit, often from $25 to $100, but others have no minimum deposit requirement. Even if you don’t have to fund your account when you first open it, you’re better off depositing money sooner rather than later. That way, you’ll be able to start earning interest sooner.

You can typically transfer funds from an existing account at another bank or deposit via cash or check. You may also be able to schedule a wire transfer from another institution. Once you've funded your account, consider setting up a direct deposit and scheduling automatic transfers from checking to savings, which will help your balance grow over time without much conscious effort on your part.

Cash Management Money Market Learn More

SoFi Checking and Savings

SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 8/27/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

Min. balance for APY Read review

EverBank Performance℠ Savings

Min. balance for APY Learn More

Barclays Tiered Savings Account

Min. balance for APY

These cash accounts combine services and features similar to checking, savings and/or investment accounts in one product. Cash management accounts are typically offered by non-bank financial institutions.

These cash accounts combine services and features similar to checking, savings and/or investment accounts in one product. Cash management accounts are typically offered by non-bank financial institutions.

Learn More

on Wealthfront's website

Wealthfront Cash Account

Min. balance for APY Learn More

on Betterment's website

Betterment Cash Reserve – Paid non-client promotion

*Current promotional rate; annual percentage yield (variable) is 5.50% as of 4/2/24, plus a .50% boost available as a special offer with qualifying deposit. Terms apply; if the base APY increases or decreases, you’ll get the .75% boost on the updated rate. Cash Reserve is only available to clients of Betterment LLC, which is not a bank; cash transfers to program banks conducted through clients’ brokerage accounts at Betterment Securities.

Min. balance for APY

CDs (certificates of deposit) are a type of savings account with a fixed rate and term, and usually have higher interest rates than regular savings accounts.

CDs (certificates of deposit) are a type of savings account with a fixed rate and term, and usually have higher interest rates than regular savings accounts.

Learn More

Marcus by Goldman Sachs High-Yield CD

4.80% APY (annual percentage yield) as of 08/21/2024

Alliant Credit Union logo

Learn More

Federally insured by NCUA

Alliant Credit Union Certificate

Alliant Credit Union logo

Discover® Bank logo

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Discover® Bank logo

Annual Percentage Yield (APY) is accurate as of 08/20/2024

Checking accounts are used for day-to-day cash deposits and withdrawals. Checking accounts are used for day-to-day cash deposits and withdrawals.

Discover® Bank logo

Learn More

Discover® Cashback Debit

Discover® Bank logo

Monthly fee

Chase logo

Learn More

Chase Total Checking®

Chase logo

Monthly fee Learn More

Deposits are FDIC Insured

Chime Checking Account

Monthly fee Money market accounts pay rates similar to savings accounts and have some checking features. Money market accounts pay rates similar to savings accounts and have some checking features.

Discover® Bank logo

Learn More

Discover® Money Market Account

Discover® Bank logo

Min. balance for APY EXPLORE MORE ACCOUNTS

How to choose the best savings account

The best savings accounts charge few fees and earn high interest rates. This can help your balance grow faster. Some of the biggest national brick-and-mortar banks pay just 0.01% APY, but high-yield accounts earn much more. If you deposit $10,000 and leave it alone for a year, your money would earn around $500 in a high-yield account with a 5% APY, compared to, say $1 in an account that earns a 0.01% rate.

It pays to shop around. Look beyond large institutions with thousands of branches. Online banks often offer high APYs with minimal fees. Many of them also have top-notch mobile apps that make it easier to manage your money on the go. See great options in NerdWallet’s list of best savings accounts .

High-yield account APYs compared to brick-and-mortar banks

National brick-and-mortar banks

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Can I open a savings account online?

Yes. Opening an account online may be easier than traveling to a bank branch or calling a representative. Per the steps above, you will want to have all of your documentation available to finish your application.

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

Sometimes a bank may not approve an application. Issues such as unpaid bank fees and bounced checks in a past account may be reported to a consumer reporting agency, such as ChexSystems, and banks may consider this information when reviewing an application.

Customers who have a ChexSystems file and can’t open an account may want to look into “second chance” checking accounts . They are not savings accounts, and typically don’t pay high rates, but they do offer a chance to establish a good banking history. If successful, you may be able to open a regular bank account in about 12 months. Read NerdWallet’s article on what to do if you’re blocked from having a bank account to learn more.

Opening a savings account and committing to put away money on a regular basis is a good way to build a cash cushion. Your balance will grow over time, and with an account that has a high yield, you can ensure your hard-earned money is working hard for you.

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Margarette is a NerdWallet authority on savings. Her work has been featured in USA Today and The Associated Press. See full bio.

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