Part 2: Why Is Getting a Bank Account So Hard? What Do I Need to Open a Bank Account?
One of the biggest surprises in life after prison is how hard it can be to open a bank account. If you’ve ever bounced checks, had an account closed, or ended up on a ChexSystems report, many banks will turn you away. This happens to thousands of people every year. If you’re wondering, what do I need to open a bank account, this blog explains the steps and options available, even if you’ve faced problems in the past.
If you have not read part one of this series, we suggest you click here to catch up.
The Cost of “Alternative” Banking
If you don’t have a regular bank account, you might be tempted to rely on prepaid cards, check-cashing places, or money orders just to get by. These options seem convenient, but convenience may come with a price.
Let’s Do the Math:
- Check-cashing places often charge 1- 3% of each check. That’s $10 to $30 out of every $1,000 you earn—just to get your own money.
- Prepaid cards can charge $5 to $10 per month in fees, plus extra for ATM withdrawals.
- Using money orders for bills? Those $1 to $2 fees add up quickly.
Over a year, you could easily lose $200 to $500, or more, just in fees. That’s money that could go toward groceries, housing, or other basic needs.
Banks vs. Alternatives | Personal Finance 101 (5-minute video)
Second Chance Accounts: A Smarter Way
Second chance accounts are made for people who have been released from prison or jail. They’re designed to help you avoid those high fees and start fresh with a real bank.
Key Features:
- No Overdraft Fees: Many options, like Chime and Varo, won’t charge you for spending a few dollars over your balance.
- Low or No Monthly Fees: Look for accounts with no minimum balance and no “maintenance” charges.
- Easy to Open: Usually, all you need is an ID, Social Security number, and a small opening deposit.
- Chance to “Graduate”: After a year or so of good account management, you may be able to switch to a regular checking account.
Mobile Banking: Your Bank in Your Pocket
Most second chance banks have easy-to-use apps for your phone. This means you can:
- Deposit checks by taking a photo
- Transfer money or pay bills online
- Get alerts about your balance or suspicious activity
- Find fee-free ATMs near you
Top Picks for 2026 (with great smartphone apps):
- Chime
- Capital One 360
- Varo
- GO2BANK
- SoFi
- PNC Simple Checking
- Wells Fargo Clear Access
- Local credit unions (many now have mobile banking, too)
What If You Don’t Have a Permanent Address?
Not having a steady address makes banking tougher, but it doesn’t have to stop you. Most banks want an address to verify your identity and send mail, but there are workarounds.
- Transitional Housing or Shelter: If you’re staying in a halfway house, treatment program, or shelter, ask staff if you can use house/shelter address for your account application. Many organizations are willing to provide this.
- Trusted Friend or Family Member: Sometimes you can use the address of someone you trust. Just make sure you’ll get your mail.
- P.O. Box Plus Physical Location: Some banks allow a P.O. Box for mailing, as long as you also provide a physical location, even if it’s temporary, like a shelter or program.
- Online and Credit Union Accounts: Certain online banks and credit unions have more flexible requirements. Some only need a government-issued ID and Social Security number.
If you get stuck, ask to speak to a branch manager or customer service rep. Sometimes they know shortcuts or can point you to specific accounts that don’t require a traditional address. You might have to try a few places, but plenty of people have made it work.
Real Savings, Real Progress
Switching from cashing checks to a second chance account doesn’t just save you money. It also starts building a relationship with the banking system. Over time, that record can make it easier to rent an apartment, set up a cell phone plan, and eventually qualify for things like car loans or credit cards on better terms.
Think of it this way: every month you avoid check-cashing fees, you’re not only keeping more of your earnings, but you’re also showing banks that you can manage an account responsibly. After a year, that could mean hundreds of dollars back in your pocket, plus a financial track record that landlords and companies actually look at. That paper trail can open more options and reduce barriers as you move forward.
The Bottom Line
Life after prison is about moving forward, step by step. A second chance account gets you out of the expensive cycle of prepaid cards and check-cashing, puts your money in your control, and helps you build a new financial future.
Don’t get discouraged if you’ve been denied before. These accounts exist because people need a real way forward. And with mobile banking, managing your money is easier than ever, even if you’re always on the go. Stay tuned for Part 3: Budgeting When You’re Broke—Simple Steps for a Fresh Start