Can I open a bank account online?

In a nutshell

Nowadays, almost every banking function that can be done at a branch can be done online, including opening a bank account.

• Opening an account online can be done from the comfort of your home.
• You can open a bank account quickly and easily by using online banking platforms.
• Even though you are applying online, you should familiarize yourself with the bank and the account you are applying for.

The benefits of opening a bank account online

Some of the benefits of opening a bank account online include:

• You avoid the need to take a trip to a bank branch.
• You can get a bank account at a bank that doesn’t have a branch in your city (or even your state).
• The entire application can be completed from your home or office, where you are more likely to have all the necessary information and documents readily available.
• Any required documents can be scanned or photographed on your mobile device and uploaded to the bank's website. This means you don’t need to mail or deliver documents to a local branch.
• The bank can have your debit card delivered to your home by overnight mail, allowing you to receive the card the next business day.
• Most banks, including traditional brick-and-mortar banks, have greatly expanded their online platforms and can provide all the services you need over the internet.
• Larger banks offer 24/7, live customer support in case you run into any problems with the application process.
• You can easily transfer funds into the new account by linking an external bank account.

The types of bank accounts you can open online

Many banks today allow you to open many different types of accounts online. These include checking accounts, savings accounts and credit cards. It’s also common to apply online for mortgages.

Be aware: Not all banks allow all account types to be opened online. For example, Wells Fargo allows online applications for individual accounts, but joint accounts must be applied for at a physical bank branch. Always check with the bank before applying to make sure the account you want to open is eligible for online application. If it isn’t made clear on the website, call customer service.

Many banks also allow you to apply for multiple accounts online at the same time. A common arrangement is a checking account with a linked savings account.

There are also online banks that allow you to open virtually every account they offer with an online application. For example, Ally Bank offers checking and savings accounts, credit cards, car loans, mortgages and retirement and investment accounts. Since it is a fully online bank (there are no bank branches anywhere), you can apply for any account online.

That doesn’t mean all banks will allow you to apply online for all their accounts. Commercial accounts, including business and merchant accounts, may require a visit to a local branch.

How to choose the right online bank

Now that banking has largely migrated online, choosing the right bank is about more than just a convenient branch location. Since online banking means you are free to conduct business virtually anywhere, there are other factors to consider:

• Does the bank have the type of account(s) you want to open?
• Will the account offer the features you are looking for, such as a checking account that includes a debit card, large in-network ATM access, mobile check deposit and bill pay?
• What are the fees associated with the account? Does the bank offer options for waiving fees associated with the account? These can include monthly service charges, overdraft fees, non-sufficient funds fees or inactivity fees.
• Does the bank have local branch access?
• What are the customer service hours? Are they offered 24/7 or limited to regular banking hours?
• Does the bank offer any bonuses for opening a new account? What are the requirements to qualify for bonuses? For example, Chase currently offers a $300 bonus when you open a new Total Checking Account and deposit at least $500 into the account within 90 days of opening.
• Does the account pay interest on your balance and what are the conditions for that interest? This can apply to interest-bearing checking accounts, as well as savings accounts and money market accounts.

How to open a bank account online

Opening a bank account online is a multistep process, but it isn’t difficult. You must be at least 18 years old to open an account. Though it doesn’t apply to banks, many credit unions have residency or occupational requirements for membership. You should check with a credit union before making the application.

Choose the right account

Many banks offer multiple checking and savings accounts, so you need to determine in advance which is best for you.

Check the bank’s website to make sure the type of account you plan to open is eligible to be opened online. For example, a bank that allows you to open a checking account online may require you to apply at a branch for other types of accounts, such as a business account.

Get your paperwork in order

Assemble all required documentation before you begin the application. Many bank websites are designed to time out automatically after a certain amount of inactivity. This situation can easily arise if you have to search for a document midway through your application.

Complete the application and provide all necessary information. An inadequate or incomplete application can result in a denial of your request.

Make sure to read the fine print

Read all bank and account disclosures thoroughly. This is the most tedious part of opening a bank account, whether it’s done online or in person. However, it’s a completely necessary step because this is how you will learn exactly how a bank does business.

For example, you’ll want to know how quickly a bank makes funds available after different types of deposits, including check deposits. The disclosures will also explain when certain fees apply, such as an inactive account fee. These can vary between different banks.

Be prepared to make the initial deposit

The fastest way to do this is by connecting an outside bank account to the new account. If this is the method you choose, you’ll need to have the external bank routing number and your personal account number available. Otherwise, many banks allow you to deposit funds at a later date — usually within 30 days of an account opening. Outside of that time, you’ll need to deposit a check drawn from another bank account (or cash) to satisfy the deposit requirement. The bank may accept a mobile check deposit, but if you plan to deposit cash, it must be done at a physical bank branch.

Activate your debit card

Depending on bank policy, a debit card may be provided immediately if you visit a local branch. Otherwise, the debit card will be sent to you by mail within a few days. Either way, you need to activate the card by calling the phone number (usually on the back of the card) and verifying any required information. However, if the card is issued at a local bank branch, you can usually activate it before leaving the branch.

Make your first transaction

This is a very important and often overlooked step, especially if you have no immediate plans for the account. However, even if you don’t plan to use the account immediately, it’s best to do a test run to make sure everything is working as it should. You can test the account by using a debit card or transferring funds to or from an external bank account.

Which documents do you need to open a bank account online?

Before beginning the application process, have the following information and documents available:

• Government-issued identification: This can include your driver's license, U.S. passport, American military identification or alien card (green card).
• Verification of address: The bank will require evidence of your physical address. It can be satisfied with a copy of the current lease (if you are renting), a recent property tax bill or mortgage statement (if you own your home), a utility bill or a bank statement or credit card statement that lists your address.
• Make an initial deposit: You can do this by connecting an external bank account. You will need the bank routing number and your personal account number from the external account.

The AP Buyline roundup

In recent years, banks have largely moved from local, brick-and-mortar branches to virtual services. Even large banks, with thousands of local bank branches, offer fast and efficient online banking. Given that online banking is now the norm, it’s best to take advantage of the benefits offered by opening a bank account online.

Frequently asked questions (FAQs)

Can I open a bank account online without going to the bank?

Yes, you can open a bank account online with most banks and common account types. That includes checking accounts, savings accounts, money market accounts and credit cards. Some will also allow you to submit an application online for certain types of financing, including mortgages, car loans and personal loans.

What bank allows you to open an account online?

Most major national banks, as well as regional banks, allow you to open an account online. That includes popular banks like Chase, Bank of America, Citi, Wells Fargo, PNC Bank and TD Bank. There are also many online banks where you can only open an account online. Those include Ally Bank and CIT Bank. However, small banks in your area may still require consumers to visit a branch to complete an application face-to-face.

Which bank account is easy to open online?

The easiest bank accounts to open online are checking and savings accounts, which are the most common accounts opened by consumers. Less common accounts, like business or merchant accounts, may be available to open online, but the process will be more complicated. At some banks, you will need to visit a branch to open such accounts.

How much money do I need to open a bank account online?

Most banks require a small initial deposit of less than $100. It’s possible you won’t even need to make that deposit when applying for the account — or even immediately after it is approved by the bank. Banks commonly provide 30 days or more for new account holders to make an initial deposit. Naturally, you will not be able to use the account until funds have been moved into it.