How to open a bank account online in 3 steps

Whether you’re looking to open your first account or upgrade to one with better perks, opening a new bank account online is pretty straightforward. Most online applications only take around five to 10 minutes to complete.

3 steps to open a bank account online

How soon you’re approved or denied for the new account can depend on the bank, whether you’re a new or existing customer and if you have all your documentation in a row.

Step 1: Choose your account

What kind of bank account do you need?

Some of the most common types of bank accounts are checking, savings, money market and certificates of deposit (CDs) — each with their own uses and place.

• Checking

  Designed for everyday expenses, checking accounts are used to pay bills, receive direct deposits from employers, make online and in-store purchases and cash withdrawals, write checks and more. Many of the best free checking accounts are easy to maintain and come from online banks.

• Savings

  Not designed for regular purchases or withdrawals, savings accounts are meant to hold cash and earn an annual percentage yield (APY). You can also set up direct deposit to these accounts for a faster way to accumulate a nest egg. The best savings accounts offer strong yields above 4% APY.

• Money market

  A money market account is an interest-bearing account that shares features of a checking and savings account. It offers savings interest while providing convenient access to your money through an ATM card and check-writing privileges.

• Certificates of deposit

  CDs lock your funds for a set period to earn interest. But if you withdraw funds before the term is up, you’ll face a fee or lose some earned interest.

• Cash management account

  Or CMA, is an account linked to a brokerage that offers investment options and wealth management services. Many come with debit cards and ATM access, similar to checking accounts.

• Business accounts

  Specially made for business owners, business accounts can separate personal and business finances for tax-related purposes or convenience. These accounts often require more documentation when opening and have stricter eligibility requirements.

Step 2: Gather your documents and apply

To apply for a bank account, you might need some documents at the ready. You’ll also need to supply some personal information like your name, address, phone number, Social Security number and your email address. Banks are required to have a consumer identification program and comply with regulations, and therefore, must verify your identity.

Depending on the type of account, you might need photocopies of some documents, like your government-issued ID which can be typically be a driver’s license or passport.

With your documents and information ready, visit the bank’s website or app to apply.

Step 3: Fund the account and start using it

Prioritize funding your account, especially if there’s an opening deposit requirement or a balance requirement to waive the monthly maintenance fee.

After you’ve funded the account, you can set up your online banking, including:

• Activate your card — usually delivered within one to two weeks
• Set up automatic bill pay or automatic transfers
• Switch your direct deposits to your new account
• Claim a signup bonus, which is often awarded for setting up direct deposit or other actions

Choosing more than one account can be beneficial.

Once you have about two months' worth of expenses in your checking account, it's recommended to open a savings account to keep your extra money and watch it grow. Unlike credit cards, keeping multiple savings accounts or checking accounts at different banks won't affect your credit score. Instead, it helps keep your money safe from potential bank failures, as long as you don't keep more than $250,000 in a bank.

— Alexa Serrano Cruz, CAMS, Lead Editor, Personal Finance.

How much money do you need to open a bank account?

It depends on the bank and type of account you’re opening. Most online banks don’t require an initial deposit to open a checking or savings account, while others may ask for amounts ranging from $10 to $100. For CDs, you’ll usually need between $250 and $2,500 to open the account.

Keep in mind that if your interest-bearing account doesn’t have an opening deposit requirement, you still need to have some money in the account to start earning interest.

What if I’m denied a bank account?

There may be a number of reasons you were denied a bank account, and the lending institution is required to tell you why. If you have a poor banking history — such as multiple overdraft incidents or past forced account closures — then your ChexSystems report is likely the culprit.

ChexSystems is a credit reporting agency under the Fair Credit Reporting Act. It gathers your banking history and generates a report of your banking history for the last five years. If your ChexSystems report isn’t ideal, a bank may deny your application.

If you can’t wait for your ChexSystems report to clear up and need an account now, look at second-chance bank accounts. Many of these accounts won’t review your ChexSystems report, but they often come with more fees than traditional accounts.

If you’re curious, you can request one copy of your ChexSystems report for free every 12 months.

Potential issues when applying online

You may have to visit a local branch to open a bank account if you run into any of these challenges.

• Not ideal for limited tech. If you can’t send photos of your application documents electronically, you may need to visit a physical branch or provide a certified copy of your documents by mail.
• Minors may need to visit a branch. Anyone under age 18 can’t open a bank account without a parent or legal guardian co-signing on the account. Many large banks require an in-person application and don’t offer online applications for custodial accounts.
• Non-US citizens have extra hoops. Nonresidents can open accounts at some banks in the US but may be required to provide additional documentation, such as a passport, green card, work visa or student ID, to a local branch to verify identity and complete the application process.

Over a third use an online bank

Well over a combined third (37%) say that they either bank exclusively bank online (19%) or have both a traditional bank account and an online one (18%)

Bottom line

The days of spending an hour at the bank to open an account are gone now that most banks let you open a new checking or savings account online in minutes. But don’t let the speed and convenience rush you into a decision.

If you’re looking to add someone else to your bank account, make sure the account accepts joint account holders. And parents looking to open an account for their child can open one as a joint or custodial account.

Before applying for a bank account, compare savings accounts or checking accounts to find the one that’s right for you.

To make sure you get accurate and helpful information, this guide has been edited by Holly Jennings as part of our fact-checking process.

Written by

Bethany Hickey

Editor, Banking

Bethany Hickey is the banking editor and personal finance expert at Finder, specializing in banking, lending, insurance, and crypto. Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance, GOBankingRates, SuperMoney, AOL and Newsweek. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt. Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others. Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine. See full bio

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