What Do You Need to Open a CD?
Opening a CD can feel like it should be simple, but the paperwork sometimes catches people by surprise, especially if it’s their first time putting money into a fixed-term account rather than a regular savings account.
The short answer
Opening a certificate of deposit typically requires proof of identity, a taxpayer identification number, a way to fund the account, and enough money to meet the bank’s minimum deposit. The exact list varies by institution, but the basic building blocks are the same whether you’re opening online or in person.
Proving who you are
Banks are required to verify a new customer’s identity before opening any deposit account, including a certificate of deposit. That usually means:
- A government-issued photo ID. A driver’s license, state ID, or passport is standard.
- A Social Security number or taxpayer ID. This lets the bank report interest earned each year.
- A current address. Some banks ask for a utility bill or lease if the address on your ID is outdated.
If you’re opening the CD jointly with someone else, the bank will usually ask for the same information from both account holders.
Funding the account
Once identity is confirmed, you need a way to move money in. Most banks accept a transfer from an external checking or savings account, a wire transfer, or a check. Cash deposits are less common for CDs opened online, since many CD-focused banks don’t have physical branches at all.
It helps to have the routing and account number for the funding account on hand before you start the application, since most online forms ask for it in the same session. Some banks also allow funding by mailing a check, though that route usually delays when the CD’s term officially begins, since the bank waits for the check to clear before crediting the account and starting the clock on interest.
Naming a beneficiary
Many banks ask, at account opening, whether you’d like to add a beneficiary to the CD. This step is optional at most institutions but worth doing, since it determines who receives the funds directly without going through probate if the accountholder dies during the term. It’s a small addition to the application, but one that’s easy to skip if you’re not expecting to be asked.
Meeting the minimum deposit
Almost every CD has a minimum opening deposit, and this is often the part that trips people up. Amounts can range from modest minimums on standard CDs to considerably higher minimums on jumbo CDs. The reasoning behind these thresholds comes down to the cost of servicing small accounts and the way banks plan around predictable pools of deposits, a topic covered in more detail in why CDs have minimum deposit requirements.
How this compares to opening a savings account
The identity and funding steps for a CD are nearly identical to what’s involved in choosing a bank account for everyday savings. The differences show up after the account is open: a CD locks your money in for a set term, and withdrawing early usually triggers a penalty, whereas a savings account lets you move money freely. Because of that lock-in, some banks ask you to confirm you understand the term length and penalty structure before finalizing a CD, something they typically skip for a standard savings account.
It’s also worth confirming that the institution is FDIC insured before funding any CD, since that protection is what backs your deposit if the bank were to fail.
What to weigh
Gathering these items ahead of time — ID, tax ID, funding source, and enough money to clear the minimum — makes the opening process faster and helps you compare offers across banks without scrambling at the last step. Since minimums, required documentation, and online application steps vary by institution and can change, it’s worth checking a specific bank’s current requirements before you apply.