Easiest Ways to Open a Bank Account Online Free

Are you looking for the easiest ways to open a bank account online? Here is how to open a bank account online in 4 steps. Prepare your contact information and proof of identity, and be ready to fund your new account.

Opening an online bank account can be simple and quick. It may only take a few minutes and save you a trip to the bank. And it may be your only option if you’re opening an account with an online bank. Top online banks are FDIC-insured, offer higher interest rates than traditional brick-and-mortar banks, and frequently charge low or no fees.

Easiest Way to Open a Bank Account Online

Table of Contents

In a few simple steps, here’s how to open a bank account online:

Choose the account type you want.
Gather your personal documents and information ahead of time.
Fill out the application form with your personal information.
Fund your new account.

#1. Choose the account type you want

Before you begin the application, you must make two critical decisions:

Checking, Savings, or others? Determine the primary purpose of this new account. If you require funds to cover regular expenses, consider opening a checking account and ensuring that it does not charge excessive fees (or that you can get them waived). If the money is going to be saved, make sure the account has a reasonable interest rate. Consider how you intend to use this new account before weighing your options.
Single or Joint Account? You are the sole owner of a single account. A joint account is one that you share with someone else, usually a family member or significant other.

Compare the terms and features of the various savings and checking accounts offered by the financial institution.

Also, ensure that the account is FDIC insured, which means that the Federal Deposit Insurance Corp. will protect your money if the bank fails.

Search for your bank on the FDIC’s BankFind tool to see if your deposits are federally insured. On the bank’s website, look for the FDIC insurance logo. (To see how the official logo should look, go to the FDIC website.)

Credit union accounts are similarly protected by the National Credit Union Administration, a separate government agency. To find out if a credit union is insured, use the NCUA’s credit union locator.

#2. Gather Your Personal Documents and Information Ahead of Time

Here’s what you’ll need to open an online bank account. This information will also be required for anyone who will be a joint account owner.

Social Security number or, for noncitizens, another form of identification
A valid driver’s license or other government-issued identification is required.
If you need to make an initial deposit into your new account, you’ll also need debit card information or the routing and account numbers for another bank account you own. These numbers can be found on a check or by logging into your existing account’s online dashboard.

#3. Fill out the Application With Your Personal Information

To open a bank account online, you must provide some personal information. Fill out the application with your personal information, which will most likely include:

Information from the items you previously gathered, such as your Social Security number, ID, and debit card or bank account information.
Name.
Date of birth.
Address.
Contact information.

While you can send this information online in most cases, you may be asked to fax or email additional documents, such as a copy of your driver’s license, to help verify your identity. If you have a history of checking account issues or a limited work or credit history, for example, some banks may require you to come into a branch to provide these documents.

You may also be required to sign and mail in a signature card or form in order for your bank to verify your signature or to agree to receive statements and other messages online. If you are not a legal adult, you will also need the information of a parent co-signer, and you may need to visit a branch to complete your application.

4. Fund Your Online Bank Account

You must make an initial deposit when you open an account online. This usually entails transferring funds from an existing account. If your bank is entirely online, you may be able to fund with a check or money order as well. You can also visit a local branch of your bank to deposit cash.

Once you’ve entered the transfer information, select an amount that meets any minimum balance or starting deposit requirements. The funds are usually processed within a few days, after which you can begin managing your new account.

What Do You Need to Open a Bank Account?

To get started, you’ll need a government-issued ID and some basic information, as well as a deposit of $25 or so.

Whether you apply for a bank account online or in person, you’ll need a government-issued ID and personal information, such as your Social Security number, on hand. You may also be asked to fund your account with an initial deposit.

Here are the specifics on what you’ll need to open a savings or checking account, as well as what to expect during the process.

What you need to open a bank account Online

You can open a bank account online or in person if the bank has physical locations. You’ll be asked for the same information whether you’re opening a checking account, a savings account, or both.

The following items are required to open a new bank account:

A valid, government-issued photo identification document (ID), such as a driver’s license or passport. Nondrivers can obtain a state ID card from the Department of Motor Vehicles.
Other basic information, such as your date of birth, Social Security number or Taxpayer Identification Number, or phone number.
Some banks also require an initial deposit. Continue reading to learn more about account funding. Mor so, depending on your circumstances, you may also require the following items:
Identification information for additional applicants, if opening a joint account: Because the account will be shared by multiple people, the bank will require identification and personal information from all owners.
If you’re not yet 18, you will need a co-owner. Ask a parent or legal guardian to sign legal documents with the bank.

What To Expect When You Open Your New Account

You can open a bank account relatively quickly, either online or at a bank or credit union branch.

In general, the bank will ask you to fill out an application for a new account—this is usually the first step. Following that, you must verify your identity and provide any additional information requested by the bank, such as your address or phone number.

If your bank requires a minimum deposit, you must make it when you open your new account. If you open an account online or make your first deposit via ACH transfer from another bank, you must provide the new bank with your routing number and account number in order for the transfer to be completed.

However, if you’re linking your new account to an existing account at another financial institution, some banks may require additional verification before you can begin using it. The bank, for example, may make one or two small test deposits into your new account. You must verify these amounts before your account can be activated, which may take a day or two.

Also, keep in mind that your initial deposit may be subject to a holding period. For example, if you make your first deposit by check, the check may take a few days to clear. You might also have to wait a few days for your debit card or first order of checks to arrive.

How Long Does It Take to Open a Bank Account?

Generally, opening a bank account is a quick process that can take anywhere from a few minutes to a few days, depending on the financial institution and the type of account. When you apply in person, most banks can open your account the same day.

You can open a bank account online in minutes, but you’ll have to wait five to seven business days for a physical debit card if you plan to use the account at retailers that don’t accept digital wallets.

How Much Money Do You Need to Open an Account?

When opening a new bank account, you must consider how much the bank requires you to deposit initially, which is known as the minimum opening deposit. This amount varies depending on the bank or credit union.

Some banks, for example, may allow you to open a bank account with no minimum deposit or as little as $1. Others may expect you to have thousands of dollars in order to open a new account.

However, if a bank or credit union requires a minimum deposit, there are a few options. To make your initial deposit, for example, you can use cash or a check written out to you. If you already have a bank account, you can use an ACH transfer to electronically transfer money from it to your new account.

What Is the Minimum Age to Open a Bank Account?

How Old Do You Have To Be To Open a Bank Account? This is one of the questions that some people do ask.

To open a bank account on your own, you must be at least 18 years old.

Children’s Accounts

Some banks and credit unions provide teen and student checking accounts for children under the age of 18. To open, a parent or guardian’s signature is usually required.

Financial institutions may also provide savings accounts for children, with parents acting as custodians until the child reaches the age of 18. When the child reaches the age of 18, they automatically become the owner of the account.

Joint Accounts

A joint bank account has multiple owners (more than one owner). If you’re married, you can open a bank account with your spouse, or you can open a joint checking account with an aging parent if you’re assisting them with their finances.

Joint accounts are typically owned equally by both account owners. This means you both have access to funds for purchases or withdrawals, as well as the ability to add to the account. To open a joint account, both parties must be at least 18 years old. However, your financial institution may provide joint accounts for parents to share with minor children.

What banks allow you to open an account online?

You can open an online-only bank, a neobank, a credit union, or any of the largest brick-and-mortar banks. In many cases, you can open a new account entirely online; however, in some cases, you may need to visit the financial institution to submit paperwork or other documents by mail or in-person visit.

Closing Your Old Account, If Need Be

If you already have a bank account and you are switching to a new one, you may need to close the old one. There are a few critical steps to take here to ensure a smooth transition, including:

Update your direct deposit information with your employer so that your paychecks are delivered to the correct bank.
Update your direct deposit information with anyone else who pays you money, such as the government or child support.
Transfer any automatic bill payments to your new account.
Recurring transfers between linked accounts can be cancelled.
In mobile payment apps, update your bank account information.
Create new text and email alerts for your new account.
Discard any paper checks and the debit card associated with your old account.

You should also consider what should be done with any accounts you intend to keep open at your previous bank.

For instance, if you have CD accounts there, consider what you want to do with them when they mature. You could roll them over into new CDs at the same bank, but if your new bank offers a higher annual percentage yield (APY), you might be better off withdrawing your money and starting over.

It’s also a good idea to request a written statement from your previous bank indicating that your account has been closed. This can help you avoid situations in which the bank reactivates your old account, resulting in fees.

How To Open a Business Bank Account

To open a business bank account, either online or in person, you’ll need to provide some personal information about yourself as well as business information. To open an account, you must also make the minimum required deposit.

Checking and savings accounts, as well as credit card and loan accounts, are examples of business bank accounts. The best bank to open a business account with is one that provides the best combination of features, services, and costs based on what you and your growing company require.

What do I need to open a business bank account?

You must meet certain requirements in order to open a business bank account. To open a business bank account, banks may require your Social Security number or employer identification number (EIN), a copy of your business license, your “doing business as” (DBA) name, and your organizing documents.

You may also be required to disclose information about your company’s revenue and, if applicable, the number of employees.

Conclusion

Once you’ve decided where to bank and what type of account you want to open, opening a bank account is relatively simple. Begin by assessing your current financial situation, then select the option that best meets your needs. Then, fill out the necessary forms and you are good to go.

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Easiest Ways to Open a Bank Account Online Free – What You Need To Know