Who Can Open a Savings Account in the United States?

Who Can Open a Savings Account in the U.S.?

Opening a savings account is one of the simplest and most effective ways to manage your money and build a secure financial future. Whether you’re saving for a rainy day, a big purchase, or simply peace of mind, a savings account can help you reach your financial goals. But how can you open one in the United States, and who is eligible to do so?  This article will explain what a savings account is, who can open one in the U.S., the best banks for savings accounts, and how to get started. Let's break it down.

What Is a Savings Account?

A savings account is a secure place to store your money while earning interest over time. It enables you to separate funds from your everyday spending (usually done through a checking account) to focus on saving for future goals.  Here are some key features of a savings account:

• Interest Earnings: Your funds earn interest based on the bank’s annual rate.
• Liquidity: Savings accounts offer easy access to your money while protecting it from overspending.
• FDIC Insurance: Most U.S. savings accounts are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000, giving you peace of mind.

Savings accounts are a foundational tool in personal finance and a smart option for anyone looking to establish financial stability and growth.

Who Can Open a Savings Account in the U.S.?

The good news is most residents can open a savings account in the U.S., but there are specific requirements and eligibility criteria to be aware of.  Below is an overview of who qualifies:

1. U.S. Citizens and Permanent Residents

If you are a U.S. citizen or hold a green card, you can easily open a savings account. You'll typically need to provide:

• A valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
• A government-issued photo ID, such as a driver’s license or passport
• Proof of residency (e.g., a utility bill or lease agreement)

2. Non-Citizens in the U.S.

Non-citizens, including those on work visas, student visas, or other temporary immigration statuses, are also eligible to open a savings account. Banks may require:

• A valid passport and visa
• An ITIN if you don’t have an SSN
• Proof of U.S. residency

3. Minors

Minors can open a savings account but will often need a parent or legal guardian to act as a co-owner. These accounts are designed to teach younger individuals the importance of saving and managing money.

4. Non-U.S. Residents

Some banks, like international or online banks, may allow non-U.S. residents to open a savings account. However, the process can be more complex, and additional documentation may be needed (e.g., proof of residency in your home country). The exact requirements can vary between banks, so it’s a good idea to contact the bank directly before applying.

Best Banks in the U.S. to Open a Savings Account

Choosing the right bank is an important part of opening a savings account. Here are some of the top banks known for their competitive savings accounts:

1. Ally Bank

• Why Choose It: High-interest rates, no monthly fees, and user-friendly online banking
• Best For: Users who prefer online-only banks 

2. Capital One 360

• Why Choose It: No minimum deposit, no fees, and in-person branch access
• Best For: Beginners looking for a combination of online and physical banking 

3. Chase Bank

• Why Choose It: Wide accessibility with physical branches and sign-up bonuses for new account holders
• Best For: Those who want face-to-face customer service 

4. American Express® High Yield Savings

• Why Choose It: High annual percentage yield (APY) with no fees
• Best For: Serious savers looking to maximize returns 

5. Wells Fargo

• Why Choose It: Large branch network and strong customer support
• Best For: Those prioritizing traditional banking services 

When selecting a bank, consider factors like interest rates, fees, ease of access, and specific features (e.g., mobile apps or ATM availability).

How Do I Open a Savings Account?

Opening a savings account isn’t complicated, and most banks offer an easy process either online or in person.  Follow these steps to get started:

Step 1: Gather Required Documents

Each bank will have its specific requirements, but these are the most commonly requested:

• Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
• A valid photo ID (e.g., passport or driver’s license)
• Proof of address (e.g., lease agreement or utility bill)

If you’re opening an account online, have digital copies of these documents ready to upload.

Step 2: Compare Banks

Use the list above to evaluate which bank aligns with your interests. Do you want higher interest rates, lower fees, or better customer service? Choose the one that fits your needs.

Step 3: Choose the Type of Savings Account

Some banks offer multiple types of savings accounts, including:

• Standard Savings Accounts for general saving goals
• High-Yield Savings Accounts for better interest rates
• Student or Minor Savings Accounts for younger savers

Pick the account that works best for your financial situation.

Step 4: Apply

Visit the bank’s website or a local branch to start the application process. You’ll typically be asked to:

• Fill in personal information
• Provide identification details
• Specify your opening deposit for the account 

For online banks, the process is fully digital and accessible 24/7.

Step 5: Fund Your Account

After your account is approved, it’s time to add your initial deposit. This can be done through:

• Direct deposit from your paycheck
• Bank transfer from another account
• Cash or check deposit (if visiting a physical branch)

Some banks require a minimum deposit amount to activate your account, so check their terms beforehand.

Step 6: Set Up Online Banking

Most banks offer online platforms or apps to help you manage your savings account efficiently. Set up your profile and enable features like:

• Account alerts
• Automatic savings plans
• Easy transfers between accounts

This ensures you can track your progress and stay on top of your finances.

Take Control of Your Savings Today

Opening a savings account in the U.S. is a straightforward process that provides the foundation for financial growth and security.  By choosing the right bank, gathering the necessary documents, and understanding your needs, you’ll be well on your way to achieving your financial goals. Start researching the best banks, and when you’re ready, take the first step toward a brighter financial future!

LEARN MORE ABOUT FINANCE