How to Open a Savings Account in 4 Steps

Written by Javier Simon, CEPF®

Edited by Marie White, CEPF®

Updated on May 22, 2025, 3:38pm ET

Maintaining a healthy savings habit is critical for financial wellness. Unfortunately, many Americans today lack basic emergency funds. One easy way to build an emergency fund is to open a savings account. The best savings accounts offer high-interest rates, zero monthly service fees and low or no minimum balance requirements. If you’re ready for a new account, here’s how to open a savings account in four steps.

For additional help reaching your financial goals, consider working with a financial advisor.

Step 1: Find the Best Savings Accounts

Not all savings accounts are created equal. These days, it’s not unusual to find a major bank that offers a savings account with an annual percentage yield (APY) as low as 0.01%. However, some online high-yield savings accounts generate interest rates above 4%, making it crucial that you compare banks before picking a new account.

To put that into perspective, consider this. Suppose you open a savings account that pays an interest rate of 0.01% and compounds interest monthly. You deposit $10,000 and do nothing else for a year. At the end of the year, the bank would have paid you just $1. Now with all other factors constant, you decide to open a high-yield savings account that generates an interest rate of 1.35%. At the end of the year, the bank would have paid you $135.84.

As you can see, it’s important to shop around and compare savings accounts. Be sure to look beyond just interest rates. You should also pay attention to how the bank compounds interest. You can earn more from your deposits with a bank that compounds interest on a daily basis vs. monthly.

You also want to pay attention to bank fees because you don’t want to risk your savings being eaten away by monthly maintenance fees. This can stretch to as much as $35 at some banks. However, some of the best banks charge no monthly fees on their savings accounts. Meanwhile, some institutions will waive the monthly fee as long as you stick to certain tasks like establishing a direct deposit or maintaining a minimum balance.

With that said, look for a savings account that requires no minimum balance or monthly fees.

Step 2: Gather Documents to Open a Savings Account

Whether you’re opening a savings account online or at a branch, you may need a few documents like these to prove your identity and fund the account.

Driver’s license, government-issued ID or passport
Social Security number
Most recent residential addresses
Email address
Date of birth
Bank account number and routing number (to fund your account)

After you’ve gathered this important information, it can take as little as 10 minutes to open a savings account. You can either go to a local bank branch to open your account or start the process online on your bank’s website.

Step 3: Fund Your Savings Account

A woman looks up how to open a savings account.

After you open a savings account, try to use it to its full potential.

Building an emergency fund and saving regularly can be a challenge, but one of the simplest ways to stick to a good savings habit is by establishing automatic transfers from your checking account. Most banks allow you to easily set up transfers online. This puts your savings on autopilot by automatically transferring a certain amount from your checking account to your savings at different time intervals of your choice.

It also helps if you prioritize savings goals. Maybe you want to buy a house or take a nice vacation. Keeping this in mind can motivate you to save aggressively in order to reach your destination faster.

The SmartAsset savings calculator can help you figure out how much and how long you need to save in order to reach your goals.

Step 4: Download Your Bank’s Mobile App

One of the best ways to keep an eye on your savings is by downloading your bank’s mobile app. Most allow you to view your account and deposit checks. However, the best mobile banking apps go so much farther. For instance, some mobile banking apps allow you to view all your accounts, including ones with other financial institutions.

Some apps even let you make a budget and provide feedback on where you can cut back in order to save more.

Once you have completed all of the steps to opening your savings account, you may still need to wait for the bank to verify your documentation before you can get access. The time this takes will depend on your bank, but typically, it can be completed within 24-48 hours.

Know Savings Account Withdrawal Limits

All savings and money market accounts are subject to Regulation D. The Federal Reserve established this rule to make sure you use your savings account as intended. It limits your account to six transactions, like withdrawals and transfers, per monthly statement cycle. These transactions apply:

Transfers to other accounts, including those with the same financial institution
Automatic transfers, such as those set to pay bills or fund accounts
Check transfers
Debit card transactions
ACH withdrawals
Overdraft transfers into a checking account
Phone processed transfers

Explore Your Savings Options

A savings account is a great place to park your emergency fund. However, savings accounts are not very liquid, so you do not have the easiest access to your funds. For example, many savings accounts limit the number of transactions per month. You also cannot write checks for most savings accounts.

If you want check-writing abilities and better access to your funds, a money market account might work for you. The best money market accounts are linked to debit cards, and the great thing is that federal regulations do not apply to ATM withdrawals. That means you can make unlimited withdrawals using your debit card at an ATM.

If you can safely lock away your money without touching it for a certain period of time, a certificate of deposit (CD) may be a better choice. CDs typically generate higher rates than money market and savings accounts. The best CD rates can reach over 4% APY, but remember you can maximize your savings only if you keep your money deposited in the CD until its term ends or you will face an early withdrawal penalty. These days, you can open a CD for terms ranging from just a few days to a few years.

How to Choose the Right Savings Account

Before opening a savings account, think about how you plan to use it. If your goal is to build an emergency fund or save for short-term needs, a high-yield savings account with no monthly fees and easy online access may be the best fit. These accounts offer better interest rates than standard savings accounts and make it simple to transfer money when needed.

If you prefer more flexibility, a money market account could be a good option. These accounts usually offer higher interest rates than regular savings accounts and may come with limited check-writing or debit card access. This gives you more ways to access your money while still earning interest.

For long-term savings goals where you don’t need quick access to your funds, a certificate of deposit (CD) might be more effective. CDs offer fixed interest rates that are often higher than those of savings or money market accounts, but your money is locked in for a set period. This option is best if you know you won’t need to touch the funds before the CD matures.

If you’re just getting started or want a simple way to save, a basic savings account with no minimum balance requirement may work well. Some banks also offer savings tools through their mobile apps, which can help with budgeting and goal tracking. Choosing the right account depends on your savings habits, how soon you’ll need the money and how involved you want to be in managing the account.

Bottom Line

Opening a savings account is simple. However, it helps to do your homework. Not all banks offer the best rates, so shop around. The best savings accounts require no monthly fees, minimum balance or even a minimum opening deposit. It’s also important to pay attention to how the bank compounds interest; the best ones do it on a daily basis. Moreover, do not forget to check out other savings options a bank may offer. These include money market accounts, CDs, bonds and other investments.

Consider working with a financial advisor who can help recommend the right type of account structure for your personal needs.

Tips for Saving More

Saving can be a major challenge, especially when you consider paying off debt and planning for retirement. If you’d like some professional help, consider speaking to a financial advisor. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
It’s not always easy to save. But it helps to know what you can cut back on. To make this clearer, we developed a free budget calculator. You can see what’s left behind after monthly expenses and direct some of what’s leftover into a high-yield savings account.
A savings account is just one piece of the puzzle. But some checking accounts also earn interest. To help you find the right choice, we published a study on the best checking accounts available today.