How to Open a Bank Account Online: 5 Easy Steps

Opening a bank account used to involve visiting a branch in person, filling out paperwork, and making your first deposit by cash or check. Now, you can open a bank account online by providing some basic information and documentation and funding your account electronically.

Opening an account online has many benefits, namely that you can fill out an application whenever you want and not even have to change out of your pajamas. Since many banks are online-only these days, you’ll also have more options that may offer lower fees and better interest rates.

Learning how to open a bank account online might feel intimidating if you’re used to the old-school method, but you shouldn’t worry because we’ll walk you through each step.

Key takeaways

• Before opening a bank account online, consider the bank’s fees, minimum balance requirements, online and mobile access, and ATM or branch locations.
• To complete an online bank application, you’ll generally need your full name, Social Security number, current address, email address, and phone number.
• Some banks also require documentation such as a photo ID and proof of address.
• Whichever bank you choose, make sure the financial institution is insured by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA).

How to open a bank account online in 5 easy steps

My mom took me to open my first bank account when I was 15 and had a summer’s worth of babysitting money burning a hole in my pocket. I’ve used that account fairly regularly since, but the recent rise in interest rates made me curious if there was a more current account that could beat what I was earning.

Honestly, I put off opening a new account because I thought it would take forever and be a complicated process. But when I finally buckled down and looked at the available options, I realized that breaking the process down into a few steps made it faster and easier than I thought it would be.

Here’s what I recommend.

1. Find the right bank

The best banks often have the right mix of features and protections that best match your overall financial needs. As you research various options, keep these key features in mind.

FDIC/NCUA Insurance: I consider FDIC or NCUA insurance the first test for any bank or credit union. In case of bank failure, this coverage will protect the money in your account for up to $250,000 per depositor, per account ownership category, per insured bank. It covers multiple account types, including checking, savings, money market, and certificate of deposit (CD) accounts. You can use this tool to find an FDIC-insured bank or this locator to find an NCUA-insured credit union.

Customer service: Another top feature I wanted in a bank was a strong customer service team. Read customer service reviews from the Better Business Bureau and other sites to understand what other customers have experienced and how a bank handles customer problems. If you plan to use mobile banking, read reviews on the App Store or Google Play to see where customers have experienced issues with the bank’s app or website.

Financial products offered: Pay attention to any bank's financial products. While some are best known for checking and savings accounts, some offer other products that may work better for your situation. Besides various personal deposit accounts, examples include credit cards, loans, mortgages, business accounts, and investment options.

ATM and branch locations: While visiting a bank branch in person is probably less important to some people, you may still need to pop in for a question or to handle an issue. Look for a bank with branches near places you already frequent, such as your home, office, gym, or your child’s school. While reviewing locations, check out the bank’s ATM network and confirm that you can easily access at least a few in-network ATMs to avoid out-of-network fees if you need cash.

2. Decide on a bank account

Many banks offer multiple kinds of accounts, including standard checking, savings, CDs, and money market accounts.

A checking account is a good choice if you want an everyday account that allows you to pay bills, access a debit card, and write checks. It usually doesn’t have monthly withdrawal limits, so it gives you the most flexibility for using your funds.

Savings, CDs, and money market accounts are all savings products that pay interest but offer varying degrees of access to your money.

• Savings accounts: Depending on your bank's monthly withdrawal limits, savings accounts generally provide the easiest access to your funds, but unless it’s a high-yield account, you may not earn much interest.
• Money market accounts: Not to be confused with an investing product called money market funds, these accounts might allow you to write checks or make debit card transactions while you earn a higher interest rate. However, they often come with larger minimum balance requirements.
• CDs: CDs generally earn a high interest rate, but you typically can’t access your money for the CD term without paying a penalty. They stand out from the other savings options since they usually have fixed rates.

Be on the lookout for some of these features as you consider your options.

• Fees: No matter which account type you’re interested in, try to find an option that doesn’t charge monthly maintenance fees and keeps other fees to a minimum. Some banks don’t charge fees on certain accounts but do so on others. Institutions that charge fees may offer ways to avoid them, such as keeping your account's daily or monthly balance at a specific dollar amount or setting up a direct deposit.

• Interest rates: Savings accounts, money market accounts, and CDs all earn interest on the money you deposit. Some of the best checking accounts even pay interest on your balance if you meet specific requirements. Look for a bank offering high interest rates, but also consider other features to help you make the best choice.
• Account minimums: Pay attention to any minimum balance or opening deposit requirements. Some bank accounts only require $5 or $10 to open, but you may not earn the highest interest rate if you don’t maintain a certain balance. Try to find accounts without any minimums to keep things simple.

Additionally, pay attention to features like:

• Overdraft protection and fees (for checking accounts)
• Flexibility to access your money via debit card or ATM
• Automatic deposits and withdrawals
• Ability to open joint and sole ownership accounts
• Mobile banking options, such as mobile deposits and Zelle transfers
• ATM fees
• Account notifications via text or email
• Account security options, such as debit card locking

Finally, always read the account disclosures and fee schedule to understand how the account works, how much the bank may take in fees, and what options you have to waive fees.

3. Gather important information and documentation

Having all the documents and information you’ll need close by can help make the application process go smoothly.

The documentation requirements differ by bank, but the most common information needed includes:

• Identification: You generally must have a valid form of identification – such as your driver’s license, passport, or Social Security card – to open a bank account. You can also typically use a state-issued identification card if you don't drive.

• Proof of address: While your driver’s license might also meet this requirement, banks might ask for a utility bill, insurance card, mortgage statement, or other document that verifies your current address.
• Personal information: You’ll need to provide your full name, current address, email address, phone number, and employment information. You’ll also likely need to provide your Social Security number so the bank can verify your identity.
• Banking details: This is also an excellent time to find the information you need to fund the account, such as your current banking details (routing and account number). You can see that information on a paper check or your online banking site. You might be able to use your debit card to complete account funding as well.

If you’re opening a joint account, know that you’ll need the other person’s information and documentation too. Before opening an account at a credit union, you should confirm that you meet the eligibility requirements for community members.

4. Complete the bank account application

When your information is ready, visit the bank’s website to complete the application, which you’ll often find linked to on the account’s page. Most banks and credit unions make it easy to complete an online application within a few minutes. However, checking with the bank or credit union about any special processes required before you start may be beneficial.

You’ll need to provide your personal information and likely verify it through a series of questions. You might also need to enter or upload your proof of address and ID information. Once verified, you can choose your account type and funding method. You’ll likely need to set up a username and password during the application process.

Once you submit the application, the bank will review it and usually let you know within a day or two if it approves your account.

5. Put money in your bank account

You can usually add money to your new account during or just after the application process. Most banks allow transfers via ACH, electronic check, or wire transfer, and some enable deposits by paper check, cash, or money order as well. The bank will likely give you step-by-step instructions for completing the transfer.

Typically, the funds transfer won’t happen until the bank approves your application. After that, the first transfer will proceed; it can take anywhere from a few hours to a few days. The amount of time it takes to transfer funds can depend on several factors, including the type of transfer and the type of account you’re transferring money from.

Tips for using your new bank account

Once you’ve completed the initial funding, it’s time to set up the rest of your financial life. Some of these may not apply depending on the type of account you opened.

Gain online access: After the bank approves your account, you’ll need to set up online access, typically by using the username and password you created when you started the application. Take some time to familiarize yourself with the online platform to make it easier to find information later. Set up text or email alerts to notify you of unusual account activity.

Set up direct deposits: Once the account is open and funded, you can move any necessary direct deposits to the new account. Your employer typically has a form you’ll need to fill out to change your direct deposit information. Remember to update any automatic withdrawals or bill payments to your new account.

Activate debit/ATM cards: If you open a checking account (or even some money market and savings accounts), you may receive a debit or ATM card. Watch your mail for the card delivery and follow the instructions to activate it.

Minimize fees and minimum balance requirements: Pay attention to any fees your bank charges and look for ways to reduce them. If you choose an account with minimum balance requirements, develop a plan to always keep the minimum in the account. For example, you might arrange for monthly automatic transfers or use direct deposit.

Recommended online bank accounts

If you’re not sure where to start with looking for an online bank account, here are two excellent options.

SoFi®: With SoFi, you open both a checking and savings account (you can’t open either on its own). But that’s a good thing, since they both have excellent annual percentage yields (APYs) — 0.50% (as of 07/22/24) for checking with direct deposit and up to 4.50% for savings with direct deposit.¹² Member FDIC.³

Visit SoFi | Read our SoFi review

Discover: Discover is unique in that you can earn 1.00% on up to $3,000 in debit card purchases each month. It’s unusual to earn rewards like this on a checking account, so if you do your spending primarily with a debit card, this account is worth considering.

Visit Discover | Read our Discover review

FAQ

Bottom line

Opening a new bank account may feel intimidating, but it doesn’t have to be. Before you start, research banks and accounts thoroughly to find one that fits your financial needs. Pay attention to the account disclosures and documentation to understand the fees, minimum balance, and additional account requirements.

If you have any questions about a potential account, don’t hesitate to ask the bank over the phone or via its online chat. You can also contact the institution if you run into any snags during the application process.

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