What type of bank account should I open?
Short answer
A checking account is the type to open first, because it handles your debit card, bills and direct deposit. Add a savings account for money you want to set aside. If fees worry you, look for a Bank On certified checking account, which opens with $25 or less and has no overdraft fees.
By Alex Thomas · Founder of ITIN Club
Updated
The types of bank account
Banks and credit unions offer the same basic accounts. Here's what each is for, based on the FDIC and consumer.gov:
| Account | Best for | Watch out for |
|---|---|---|
| Checking | Debit card purchases, ATM cash, paying bills online, direct deposit, payment apps like Zelle | Monthly fees unless you keep a minimum balance. Overdrawing means big fees |
| Bank On certified checking | A low-cost first account | Opens with $25 or less, with no overdraft or low-balance fees. Offered by over 500 institutions |
| Savings | Emergencies and goals, money kept apart from what you spend each month | Interest is usually very small |
| Certificate of deposit (CD) | Money you won't need for a set time | Terms often run three months to five years or more. Early withdrawal usually costs a penalty |
| Money market account | Larger savings that still need to be reachable | Usually requires a higher minimum balance |
Which one to open
- New to US banking: open checking. It's the account your paycheck, debit card and bills run through.
- Have a paycheck coming in: add savings and move a set amount each month, so emergency money stays separate.
- Worried about fees: look for a Bank On certified account. The St. Louis Fed describes them as a path for anyone to own a checking account.
- Savings you won't touch for months: a CD usually pays more than regular savings.
Keep the fees down
consumer.gov gives three tips: choose a free checking account and stay above its minimum balance, use your own bank's ATMs, and spend only what you have. Direct deposit can also get some fees waived. Before you open any account, ask for the fee list for each one you're comparing.
Want the full picture?
How to open a US bank account as a non-resident
Updated 6 min read
Read guide →Related questions
Sources
Join ITIN Club — it's free
Ask members who've already done it, follow the first-year course step by step, and message other members directly. No SSN needed.