You can easily open a new bank account from the convenience of your home if you’re looking for one. Online bank account opening is simple and shouldn’t take more than a few minutes. On your laptop or smartphone, you might be able to open an account with a local bank, credit union, or online-only bank. This negates the need for branch visits or paper forms. Once your account is set up, you can transfer money online and pay bills. Everything is handled digitally. The procedure for opening a bank account online is described below.
Key Learnings
- You’ll need your birth date, Social Security number, driver’s license or another form of identification, contact information, and funding information in order to open a bank account online.
- While you won’t need to physically visit a bank branch, you might need to wait for forms to arrive in the mail or use an e-signature to sign a document.
- You might have trouble opening a bank account online if you’re under 18 years old, have poor credit, a troubled history with checking accounts, or for any other reason.
What You Need To Open An Online Bank Account
Be ready to provide personal information to the bank in order for them to confirm your identity when opening an online bank account. You might also need to set up electronic deposits to your new online bank account. Gather the following items before you start the process.
Personal Information
You need to tell the bank who you are and provide personal details about yourself. Be prepared to give:
- Your Social Security number.
- Your birth date.
- Any government-issued ID numbers (driver’s license, passport, U. S. ID from the military, etc. ) with the issue and expiration dates.
Information about how to reach you
Banks require your residential address, contact information, and email address. Despite the fact that you work online, federal law still requires you to give a physical address—the place where you actually reside—as well as a mailing address. You can also use a post office box or something similar.
Financial Details
Banks frequently require an initial deposit to open an account; typically, this is between $25 and $100.2. You may be able to make this deposit using a credit or debit card, a check or money order. As an alternative, you can connect a different bank account and then transfer money by providing the routing and account numbers.
E-Signatures and Signatures for Online Bank Accounts
After providing the aforementioned information to some banks, opening an account is complete. With an electronic signature, you can sign any legal documents, and you can access your account almost immediately. 4 A lot of local banks and small credit unions now accept e-signature documents. 5 If you already know which financial institution you want to use, all you need to do is go to their website and search for the “Open an Account Now” option.”
Some banks allow you to start your application online, but they eventually need a real signature. In these circumstances, you typically receive a “Welcome Kit” in the mail that includes all necessary paperwork, including a signature form. Although the use of paper checks is waning, some banks still prefer that your file contains an official signature to support a check or debit card purchase in the event of a dispute.
Note
You might have to wait longer before using your account while the bank processes your paperwork if the bank needs your signature on paper.
Ask the bank how the process works if you need to use your new account right away by calling them or chatting with them online. You might be better off opening an account in person or choosing a bank that allows you to do it entirely online.
Problems With Online Bank Account Opening
Sometimes, in order to open an account, you must go to a branch or present more paperwork.
Credit that is “Thin”
As you open an account, banks confirm your identity. They do this, among other things, by looking at your credit. (Yes, even if you don’t apply for a credit card or borrow money, they still check your credit. They won’t find anything if you don’t have much of a credit history—for example, because you’re young and haven’t borrowed enough to establish credit. To open your account, they might therefore require that you go to a physical location and present a government-issued ID.
Under 16 or 18 years of age
Online bank account opening might not be possible for those who are younger than 16 or 18. 7 You can still open a checking or savings account if you’re underage, but you’ll need a co-signer who is at least 18 years old and may need to go to a branch in person.
Note
Banks that only operate online have been around for a while and may be even simpler to start than conventional brick-and-mortar banks.
Reviewing the account history
You might not be able to open a new checking account online if you have previously overdrawn your accounts, been suspected of fraud, or shared an account with someone who has. 9 If you’re having trouble getting an account, make sure to check your ChexSystems report for mistakes. Once more, you might be more successful at a branch.
Citizenship
You must be a U.S. citizen. S. In theory, a citizen should have no trouble opening a bank account online. Though it doesn’t necessarily mean it’s impossible if you’re not a citizen. Perhaps going to a branch is required. 10 If you open accounts at some banks using an ITIN, a different procedure might be necessary. You might be able to open a bank account at some other banks and credit unions using a foreign passport or a consular ID like the Matricula Consular card.
Company Accounts
Online account opening is typically possible with banks. Some banks demand that you visit the branch or mail the necessary paperwork in if you need an account for a company, trust, or other type of organization. Although it is becoming more and more possible to open these accounts online, it is still not a given.
You will require the following in order to open a business account:
- EIN, or employer identification number.
- Articles of incorporation and operating agreements for businesses.
- If necessary, business licenses and permits from the federal, state, and local governments.
Question and Answer (FAQ) pages
Can you immediately open a checking account online?
Your definition of immediately will determine what I mean. For the majority of banks and credit unions, opening a checking account online probably doesn’t take longer than a few minutes.
Is it possible to set up a child’s online bank account?
If you already have an account at the financial institution, you can typically open a separate bank account for your child online. But think about whether taking the steps in person by going to a bank branch would be advantageous or enjoyable for your child.