Money & Debt

Most people who are 18 or older can open a bank account in Illinois. This is true regardless of citizenship or immigration status. A minor can often have an account too, with an adult involved in the account.

Factors to consider when comparing banks include: 

• The types of accounts available,
• Fees and minimum balance requirements, 
• Interest rates, 
• ATM locations and fees, 
• Online and mobile banking options, 
• Physical locations and hours, and 
• Customer service options. 

Banks have different requirements for opening and maintaining accounts. Some require an initial deposit to open an account. Some require a minimum balance to avoid or reduce certain fees. They may also have specific rules about identification and other papers required to become a customer.

To open a bank account, a person typically needs:

• A government-issued photo ID from the U.S., a state, or a foreign government,
• A second form of identification, such as a Social Security card, birth certificate, or bill showing the person’s name and address,
• A Social Security number or Individual Taxpayer Identification Number (ITIN), and
• Money for any required opening deposit.

Each bank has its own rules about acceptable identification, including identification issued by a foreign government. A bank may also have requirements for papers that are not in English.

A bank account can have one or several account holders:

• An account with one account holder is called an individual account,
• An account with more than one account holder is often known as a joint account, and 
• Some accounts for children under age 18 are custodial accounts managed by an adult.

When deciding whether to open an account, a bank must:

• Verify the identity of the person applying to open the account, and 
• Comply with laws intended to prevent accounts from being used for money laundering and other criminal activities.

A bank may also check the person’s banking history through a consumer reporting agency, such as ChexSystems. A security freeze on a banking history report can prevent the bank from accessing the report. This may delay or prevent the bank from opening the account until the person lifts the freeze.

No, banks are not required to open an account for every person over age 18. A bank can decline to open an account for many reasons. These include:

• The application is incomplete,
• The applicant has a history of unpaid bank fees or overdrafts,
• A previous account was reported for suspected fraud, or
• The bank cannot verify the information provided because of a security freeze, file mismatch, or other error.

Problems opening a bank account are often related to consumer reports from agencies such as ChexSystems. Use the ChexSystems website to:

• Request a free copy of the ChexSystems report, and
• Freeze or unfreeze access to the report file.

Yes, undocumented immigrants can open a bank account in Illinois. Banks can choose to open accounts for people who:

• Use an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number (SSN), or
• Do not provide an ITIN or SSN at all.

Banks that do not require an ITIN or SSN must still verify customers' identities to prevent misuse of bank accounts. They may also refuse to offer interest-bearing accounts to customers without an ITIN or SSN.

Do not misrepresent or lie about immigration status on any bank paperwork, as this could have negative effects on a current or future immigration case.

People who cannot get a bank account may:

• Get a prepaid debit card, which is a card loaded with money that can be used for purchases and online bill payments,
• Use a check-cashing store to cash checks for a fee,
• Use a money transfer service, such as Western Union or MoneyGram, to send and receive money domestically and internationally,
• Use a digital wallet service, such as PayPal, Venmo, Cash App, or Google Pay, to store funds, make purchases, and send money without a traditional bank account, or
• If they have access to a bank account in another country, check if that bank partners with United States banks and can help with opening a local account.

A savings account is a type of bank account designed for storing money over time. Savings accounts may have limits on how much money can be withdrawn or charge fees for using the account to pay bills. 

A savings account can help with:

• Building savings,
• Having an emergency fund, or
• Making a down payment on a house.

Most savings accounts earn interest, which grows the account balance over time.

A checking account is designed to be used for everyday money tasks, such as buying groceries or paying utilities. Checking accounts may charge fees for specific services and usually do not earn interest.

A checking account usually includes:

• A debit card,
• Paper checks,
• Direct deposit,
• Online bill payment,
• Mobile check deposit,
• Overdraft protection, often linked to a savings account, and
• Balance and transaction alerts to help protect against fraud.

Yes, a bank may require a person to open more than one account. For example, banks may require a person who wants a checking account to also open a savings account.

A bank can charge many kinds of fees. Fees vary by bank. 

Common fees include:

• Account maintenance and minimum balance fees,
• ATM fees,
• Overdraft fees,
• Insufficient funds (“bounced check”) fees,
• Wire transfer fees,
• Check or card ordering fees, and
• International transaction fees.

An overdraft happens when a transaction lowers a bank account balance below zero. This can happen for many reasons, including:

• A deposit has not fully cleared,
• Several automatic payments are scheduled on the same day, or
• The account holder makes a payment knowing there are insufficient funds in the account to cover it, such as writing a bad check.

An overdraft fee is a fee a bank charges when it allows a transaction to go through even though the account does not have enough money to cover it. Fee amounts vary by bank, and an account holder can be charged multiple overdraft fees for multiple transactions on the same day.

Instead of charging an overdraft fee, a bank may automatically transfer money from another account, such as a savings account, to cover the shortfall. This is called overdraft protection. It usually comes with its own fee.

Yes, if the fee is in the account terms and the bank does not agree to remove it. An account holder can ask the bank to remove an overdraft fee, but the bank may decline.

If the fee is not removed, the account holder must add money to the account to cover both the negative balance and the fee. If the balance is not brought above zero, the bank may close the account and send any unpaid balance to a collection agency.

A check bounces when there is not enough money in the account to cover it. Both the person who wrote the check and the person who tried to cash it may face a fee. The bank charges the person who wrote the check a non-sufficient funds (NSF) fee. The person who tried to cash the check may be charged a returned check fee by their own bank. A history of bounced checks can make it harder to open new bank accounts.

Yes, with one exception. A bank can cash a check with a correct signature, even if it is post-dated or cashing it would overdraw the account. If the check bounces, the account holder may be charged a fee. The recipient may also be charged a fee for the returned check.

There is one exception. If a person warns the bank in advance about a post-dated check, describing it in sufficient detail and giving the bank a reasonable chance to act, the bank is expected not to pay the check until the date written on it. Putting this notice in writing helps confirm it was given. The bank may charge a fee for this extra step.

When bank accounts are jointly owned, if one account holder dies, the surviving account holder keeps access to the account. The money passes directly to the surviving account holder without going through probate. Learn more about Settling an estate after someone dies.

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