When you’re ready to open a checking account, you’ll have a few basic steps to follow. Thankfully, the process is relatively simple as long as you have your documentation ready and carefully follow the instructions.

Knowing how to open a checking account sets you on the path to managing your finances effectively. Read on to learn how to do it online or in person.

6 Steps for Opening a Checking Account

There are a few simple steps to take from beginning to end when you’re ready to open a checking account.

While the process outlined below includes the most common steps, different banks and credit unions will have varying requirements. So before starting, you’ll want to confirm the application process and requirements.

1. Choose a Bank or Credit Union

The first major decision you’ll need to make when opening a new checking account is choosing between a credit union or a bank. Credit unions often offer better options for opening a checking account for several reasons:

• Generally offer higher interest rates/dividends on checking accounts
• Lower or no overdraft fees (account-dependent)
• Competitive rates on credit cards
• Usually charge low-to-no ATM fees
• More flexible eligibility requirements
• Offer the same technology and access to your money as banks
• Provide better and more personalized customer service

2. Choose Your Ideal Checking Account

There are many different types of checking accounts. Some offer higher interest rates, while others provide an opportunity to rebuild your financial history.

Before you open a checking account, you’ll need to know which one suits your needs best. Here are several popular checking accounts you can choose from:

Premier Interest Checking

This deposit account is ideal for those who use their debit cards often and want to earn interest on their checking account balances. There are no monthly fees or penalties. Enjoy a competitive Annual Percentage Yield (APY) on balances up to $10,000 to help achieve your savings goals. 

Opportunity Checking

This account allows you to rebuild your financial history and receive your pay two days early with Direct Deposit. Enjoy a minimum $50 savings deposit and just $5 for checking accounts. Get a well-deserved second chance and an opportunity to build a brighter future with this account.

Elite Checking 

A basic checking account that’s anything but basic. Enjoy a $5 opening minimum deposit, no monthly fees, and get your direct deposits up to two days early. Best of all, you’ll earn dividends on qualifying balances.

Youth Checking Accounts

Pre-teens and teens can learn how to save, spend, and budget thanks to the youth bank accounts we designed just for them. Our youth accounts include a range of features tailored to each age group. This helps to foster healthy money management habits during important financial developmental years.

3. Gather Your Documentation

You must provide specific information on your checking account application that you’ll find on the documents below. You may also need to present copies of the documents to verify your identity and address.

Although different banks and credit unions have varying requirements, you should have these ready for your application:

• Identification documents: You'll need a valid government-issued photo ID (such as a driver's license or passport) to verify your identity and date of birth. Some banks might require your phone number as well.
• Social security number: The law requires financial institutions to collect your social security number for tax reporting and Patriot Act compliance.
• Proof of address: You'll need to provide a document like a utility bill, bank statement, or mortgage bill that shows your name and current address.
• Initial deposit amount: Most banks and credit unions require a minimum opening deposit of between $25 and $100. Make sure you have funds available to deposit when opening your account.

Financial institutions may require extra information or documents depending on their policies or the account type. For instance, non-U.S. citizens may need to provide other forms of identification or proof of legal residence. Also, the process of applying online may differ from in-person applications.

4. Submit Your Application

Most banks and credit unions offer the ability to open a checking account online. You can also visit a local branch to complete the process. Whichever you choose, your application should only take a few minutes.

You must provide your personal identification information when you submit your application. This is why having your documentation ready in advance makes it easier for you to complete your application.

5. Set Up an Initial Deposit

The next step is to make an initial minimum opening deposit. Some checking accounts do not require an initial deposit or if so, it’s only a small amount. At Baton Rouge Telco, our three checking account options only require a $5 minimum deposit.

If you have accounts at the same financial institution, you can easily transfer funds from an existing account to open a new checking account.

If not, you’ll need to use an external account. Either way, you must provide all relevant account information and authorize transferring money to your new account.

6. Sign the Documentation

The last step is to sign your application. You must agree to the terms and conditions and confirm your information is correct.

You can usually do this when you submit your application online. However, some credit unions and banks require you to mail in the signature page for their records. They won’t activate your new checking account until they receive and review your signed documentation.

How to Open a Checking Account Frequently Asked Questions

The above information provides a general overview of how to open a checking account. However, people often have additional questions about how the process works. Here are several FAQs about opening a checking account.

What If I Must Move My Money From Another Bank or Credit Union?

If you need to move your money from another bank or credit union, you want to set up your checking account first. Once the new account is in place, you can schedule a transfer of funds into it. You can then decide whether to keep or close your other account.

What If I Need to Close My Other Checking Account?

If you decide to close your other checking account, there are additional considerations to remember. You likely have various automatic transactions in your account that you want to take care of. 

Here are several essential considerations to keep in mind before closing your other account:

Direct Deposit

If you're closing an account that receives your direct deposit, update your employer with the new account details. Wait a few weeks to close the old account to make sure the switch has occurred.

Automatic Payments

If you have automatic bill payments set up, you want to update all payment information with your new account. Reviewing your statements over the last few months is helpful so you don’t forget any payees you owe money to on a recurring basis. 

Keep your account open for one more billing cycle after making all necessary changes. This ensures you don’t miss anything.

Recurring Transfers

Cancel any automatic transfers attached to your old account. You’ll also need to update the transfer details to your new account to ensure the money carries over on the recurring basis you had chosen.

Wait to close your account until all of these changes have taken effect. You want to wait until everything is in place because closing prematurely can cause unnecessary financial troubles.

How Do I Get the Most From My Checking Account?

To get the most out of your checking account, you want to make yourself aware of all the features associated with it.

Can you get overdraft protection? Do you earn dividends on your balance? Can you enroll in eStatements? Take advantage of all the beneficial features available to get the most from your checking account.

Now that you know how to open a checking account, click below to learn why you should open one.

Why Open a Checking Account