You can open a bank account from the comforts of your home. It should take you only a few moments to open a bank online. On your laptop or smartphone, you may be able open an account with a local credit union or bank or even an online-only institution. This means that you don’t need to visit a branch, or fill out paper forms. Once your account has been opened, you will be able to pay online and transfer money. We’ll show you how to open an online bank account.
The Key Takeaways
- You’ll need to provide your date of birth, Social Security Number, driver’s licence or other form of identification, contact information, and funding details in order to open an online bank account.
- You won’t have to go to a bank branch to do your banking, but you might need to sign documents electronically or wait to receive forms in the mail.
- You may have difficulty opening a bank online if you are under 18, you have bad credit, or you don’t have a good history of checking accounts.
What you need to open a bank account online
You will need to enter your personal details so that the bank may verify your identity. It is possible that you will also have to set up electronic deposits into your new bank account. Before you begin, gather the following items.
Personal Information
Tell the bank your name and give them some personal information about you. Prepare to provide:
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- Your Social Security Number
- Date of Birth
- You can use any government issued ID number (driver’s licence, passport, U.S. Military ID, etc.). Dates of issue and expiration
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Contact Information
Your home address, your phone number and your email address are required by banks. You must provide your physical address, even if you are operating in a virtual world.
Funding Information
You can also provide routing and account numbers to connect a separate a data-component=”link” data-ordinal=”1″ data source=”inlineLink”/data type=”internalLink”. You can also provide routing and account number to connect another account, and then transfer the money.
Signatures and e-Signatures on Online Bank Accounts
You can sign any legal agreements with an e-signature and start using the account almost immediately. With an electronic signature, you can sign legal documents and start using your account immediately.
Some banks allow you to start your application online, but require a signature at the end. You will receive a Welcome Kit in the mail that contains all required documents including a signature sheet. Even though the use of paper checks has declined, some banks require an official signature in your file as a way to verify the purchase of a debit card or check.
Note:
You may have to wait a little longer to use your account if the bank requires your signature.
Ask the bank how to open a new account quickly. You can chat online or call them if you want. It may be easier to open an account in person, or with a bank which allows you to do so online.
Open a bank account online: Challenges
You may need to visit the branch to open a new account or you may be required to provide additional documents.
“Thin” Credit
When you open a bank account, the bank verifies your identity. Checking your credit is one way they do it. Yes, they will check your credit history even if you are not borrowing or applying for a credit card. They won’t be able to find any information if you have no credit history, such as if you are young and have not borrowed enough money to build up credit. You may be required to go to a brick and mortar branch to open an account.
Aged 16 to 18 years old
You may need a cosigner to open an account if you are under 18.
Note:
Since years, online-only banks are available. They may even be easier to open than brick-and mortar banks.
Checking account history
You may not be able open an online account if you have had an overdraft or been suspected of fraud. You might also have better luck in a branch.
Citizenship
It should be relatively easy to open a bank online if you are a U.S. Citizen (in theory). It’s not impossible to open a bank account if you aren’t a U.S. citizen. 10 Certain banks may require you to go through a special process in order to open an account with an ITIN. Some banks will allow you to open an account using a foreign passport, or a consular ID such as the Matricula Consular Card.
Entity account.
Most banks let customers open an online account. Some banks will require that you visit the branch to open an account if you are opening one for a trust or business. Although it is becoming more common to be able to open an account online, this option is not always available.
You will need the following to open a business bank account:
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- Employer Identification Number (EIN).
- Documents for business formation (articles d’organisation and operating agreements)
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FAQs (Frequently Asked Questions)
Is it possible to open a checking or savings account instantly online?
Instantly depends on how you define it. Most banks and credit unions allow you to open an online checking account in a matter of minutes.
Can you open an online bank account for my child?
If you already have a bank account with the institution, it is usually possible to open a child’s account online. Consider whether or not your child will enjoy visiting the bank and following the steps personally.
