Opening a bank account online is quick and easy. Furthermore, it takes only a few minutes and it’ll save you a trip to a bank branch. Whether you’re banking with a traditional brick and mortar bank or with an online only bank, most banks will let you open an account online.
A bank account is a helpful tool for managing your money, paying your bills and saving for your financial goals. Keep reading to learn how to open a bank account online.
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What Do You Need to Open a Bank Account Online?
Some things you need in order to open a bank account online are:
- Social Security number or, for noncitizens, another identification number.
- Valid driver’s license or other government-issued ID.
- If your new account requires an initial deposit, you’ll also need debit card information, or routing and account numbers, for another bank account you own. You can find these on a check or by logging into your existing account’s online dashboard.
Additionally, you will also need to fund your new account. You will need your account number and routing number or debit card if you are transferring money from another bank account. Additionally, you should see if your employer or payroll company will provide a form or if the bank will ask you to use its form if you are planning on funding the account by direct deposit of your paycheck.
What To Do Before Opening an Account Online
Decide What Type of Account You Want
- Checking accounts allow you to deposit your paycheck and pay your monthly bills, so you don’t have to carry cash. Additionally, there are some checking accounts that earn interest.
- Savings accounts are good to put money into every month to save for a goal or a large purchase. Not only does it keep your money safe and earn interest, but a savings account also keeps the money you’re saving separate from the money you use to pay your bills.
- Certificates of deposit allow you to save money that you don’t need to access immediately. They are simialr to savings accounts, but they hold a fixed amount of money for a fixed time period, such as one year. At the end of the specified time period, you receive your initial deposit back, plus the interest earned.
- Money market accounts typically offer a higher interest rate than checking or savings accounts, but they still give you access to your money through an ATM, debit card or checks.
Choose a Bank
When choosing a bank, it is important to think about how you prefer to bank and what you expect to get out of your accounts. For instance, an online-only bank would be great for you if you do all your banking through a mobile app. However, if you prefer going to a local in-person branch, a traditional brick and mortar bank might be a better fit for you.
How To Open a Bank Account Online
- Go to the bank’s website: Before you enter your personal information, take a moment to verify the site. Double-check the URL and look for the padlock symbol in the browser’s navigation bar.
- Complete the online application: You will need the information that was listed earlier to completely fill in the form. Many online banks offer a live chat feature or a phone number you can call if you have questions during the application process.
- Fund Your Account: Once you receive approval for your account, the bank should send instructions for funding it. In most cases, you can transfer money from another account or mail in a check or money order to make your initial deposit.
Questions to Ask Before Opening a Bank Account
There are many options available when opening a bank account, so asking yourself these questions can help narrow down your choices:
- Is there a minimum amount of money I need to put in to open the account? Each bank has its own requirements for the initial deposit you need to open the account. For example, one bank may have no minimum deposit, while other banks might have $100 minimum deposit. Find out how much you need to get started before you apply.
- Is there a minimum amount of money I need to keep in the account at all times? Some banks have minimum balance requirements. If the account balance falls below the minimum threshold, you typically have to pay a maintenance fee.
- Are there any fees? Fees can add up, so it’s important to know what fees the bank charges so you can add them to your budget or avoid them. Some of the most common fees include those charged for overdrawing the account, receiving paper statements, failing to maintain the minimum required balance or using out-of-network ATMs.
Author’s Verdict
Before you open a bank account online, there are a couple things you should consider. Once you are ready to open an account, it is rather simple and quick. In addition, many banks offer a bonus for opening a checking or savings account, so be sure to take advantage of those bank promotions.
Furthermore, you may also want to check out savings accounts if you want to get started on saving up money.
