How To Open A Bank Account Online

Opening a bank account online is faster, easier, and often more profitable than visiting a branch. The entire process — from choosing an account to making your first deposit — typically takes less than 15 minutes.

Here’s exactly what you need to do, what documents to have ready, and which account types make sense for your situation.

Ready to compare your options? See Bankrate’s best checking accounts | Compare the best high-yield savings accounts

Step 1: Choose the right account type

Before you fill out an application, decide what you actually need. Each account type serves a different purpose, and choosing wrong means you’ll either miss out on interest earnings or pay unnecessary fees.

Checking accounts: For everyday spending

Best for: Paying bills, debit card purchases, frequent transactions

What to look for:

• No monthly maintenance fees (or easy-to-waive fees)
• Free ATM access (either through a large network or ATM fee reimbursements)
• Mobile check deposit
• No minimum balance requirements

The reality: Most people don’t need a checking account that pays interest. Prioritize convenience, low fees, and digital features over APY. If you want your money to grow, that’s what savings accounts are for.

Compare Bankrate’s best checking accounts

High-yield savings accounts: For emergency funds and savings goals

Best for: Money you want to grow but might need to access occasionally

What to look for:

• Competitive APY (currently around 4.00% at top banks)
• No monthly fees
• Easy transfers to checking accounts
• FDIC insurance

The math: A high-yield savings account earning 4.30% APY generates $4,300 annually on a $100,000 balance. A traditional bank savings account at 0.01% APY earns $10. That’s not a typo — it’s a $4,290 difference.

See Bankrate’s best high-yield savings accounts

Money market accounts: The hybrid option

Best for: People who want high interest rates plus check-writing or debit card access

What to know: Money market accounts combine features of savings and checking accounts. They often offer competitive rates (similar to high-yield savings) while providing limited transaction capabilities. Some even come with checks or debit cards.

The tradeoff: Slightly lower APYs than pure high-yield savings accounts, and some have higher minimum balance requirements.

Learn more: Bankrate’s best money market account rates

Certificates of deposit (CDs): For money you won’t touch

Best for: Funds you can lock up for 3 months to 5 years in exchange for guaranteed returns

What to know: CDs typically pay higher rates than savings accounts (currently around 4.00% APY depending on term length). The catch: early withdrawal penalties if you need the money before the CD matures.

When to choose a CD: You have a specific goal with a defined timeline (down payment in 18 months, property tax payment in 6 months) and you want to lock in today’s rates before they potentially drop.

Compare current CD rates

What about traditional vs. online banks?

Online banks consistently offer better rates and lower fees than traditional banks. The numbers don’t lie:

• Online bank savings: 4.00%-4.40% APY, $0 monthly fees
• Big bank savings: 0.01% APY, $5-$12 monthly fees (unless you meet balance requirements)

The only reason to choose a traditional bank is if you regularly deposit cash (online banks have limited cash deposit options) or you strongly prefer in-person service. Compare online banks vs. traditional banks.

Step 2: Gather your documents (before you start the application)

Banks need to verify your identity to comply with federal regulations. Having these documents ready before you start will save you time and frustration:

• Social Security number (or Tax ID number for business accounts)
• Government-issued photo ID (driver’s license, state ID, or passport)
• Proof of address (utility bill, bank statement, or lease agreement with your name and current address)
• Contact information (phone number and email address)
• If you’re funding via transfer: You’ll need the account and routing numbers from your existing bank or your online banking login credentials (some banks use instant verification instead of manual entry)

Step 3: Complete your online application

Once you’ve chosen your bank and account type, visit their website and look for “Open an Account” or similar language. The application typically takes 10-15 minutes.

During the application process, you’ll be asked to enter your personal information (name, address, date of birth and Social Security number), upload or provide photos of required documents, choose account features like overdraft protection or paperless statements and accept the account terms and conditions.

What to expect during processing: Many online banks provide immediate approval for straightforward applications. You’ll get an account number and can start funding right away. Some banks need additional time to verify documents or review your application if there are any flags (unusual address history, difficulty verifying identity, etc.).

Reasons you may be denied: Poor banking history (too many overdrafts, unpaid negative balances at previous banks), inability to verify identity, or being flagged in ChexSystems (the banking equivalent of a credit report). If you’re denied, you can request a free ChexSystems report to see what’s on file. Here’s our guide on what to do if you get rejected.

Need help? Most banks offer online chat or phone support during the application. Don’t struggle with confusing questions — just call and ask.

Step 4: Fund your new account

After approval, you need to make an initial deposit to activate your account. Most banks require $25-$100 to open, though some online banks have no minimum.

• Bank transfer (ACH): Link an existing account and transfer money electronically. This is usually free but can take 1 to 3 business days.
• Mobile check deposit: Use your phone to take pictures of a check and deposit it directly to your new account.
• Wire transfer: Faster than ACH but typically involves fees ($15 to $30).
• Digital payment services: Some banks accept funding through PayPal, Venmo or similar services.

Some accounts also require you to maintain a minimum balance to avoid monthly fees. This is separate from the opening deposit. Always check both requirements.

How long does it take to open a bank account online?

You can have a fully functional online bank account with deposited funds in 1-3 business days from start to finish.

• Application: 10-15 minutes if you have documents ready
• Approval: Instant to 3 business days (most are instant)
• Account activation: Immediate upon approval
• First deposit availability: 1-3 business days (depending on funding method)
• Debit card arrival: 7-10 business days via mail

Which bank accounts are easiest to open online?

High-yield savings accounts are the easiest online accounts to open, followed by basic checking accounts. These typically have: minimal documentation requirements, instant or same-day approval, no (or low) initial deposit minimums and no credit check.

Banks known for easy online account opening:

• Ally Bank: No minimum deposit, instant approval, straightforward application
• Marcus by Goldman Sachs: High-yield savings with no fees, easy verification process
• Capital One 360: Both checking and savings, instant approval for most applicants
• Discover Bank: Cashback checking and competitive savings, simple application

Bank accounts that are typically harder to open online include business accounts, accounts requiring large minimum deposits ($10,000+) and accounts for people with past banking issues.

Compare the best online banks.

Bottom line

Opening a bank account online is the fastest, easiest way to start banking. The process takes 10-15 minutes, requires just a few basic documents, and you can fund your account without visiting a branch.

Here’s exactly what to do:

1. Decide which account type you need (checking for spending, savings for growing money, CDs for guaranteed returns)
2. Gather your documents (SSN, government ID, proof of address)
3. Apply online (10-15 minutes, instant approval in most cases)
4. Fund your account (ACH transfer is easiest, takes 1-3 business days)

The biggest mistake people make is choosing the wrong bank. Online banks consistently offer better rates and lower fees than traditional banks. Unless you need regular in-person service or cash deposits, online banks are the smarter choice.

Related reading:

Frequently asked questions about opening a bank account

• Can I open a bank account online without going to a branch?
  

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  Yes. The majority of banks — including traditional banks like Chase, Bank of America, and Wells Fargo — allow fully online account opening without ever visiting a branch.

  Online-only banks like Ally, Marcus and Discover have no physical branches at all, so online is your only option.

• Do I need good credit to open a bank account?
  

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  No. Banks don’t check your credit score when opening checking or savings accounts. They check ChexSystems (a database of banking history) to see if you have unpaid negative balances, frequent overdrafts, or fraud flags.

  If you have poor banking history: Look for second-chance checking accounts that don’t use ChexSystems. Some options include Chime, Current and Varo.

• Can I open a joint bank account online?
  

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  Yes. Most banks allow joint account opening online. Both account holders will need to provide their personal information and documents. Some banks require both people to be present (either virtually or in person) during the application process, while others let one person initiate and the second person completes verification afterward.

  Learn more: Best joint checking accounts

• What if I make a mistake on my application?
  

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  Contact the bank immediately. If you haven’t submitted yet, you can usually go back and edit. If you’ve already submitted, call customer service right away. Small errors (typos in your address) are easy to fix. Errors in your SSN or legal name may require additional verification steps.

• Are online banks safe?
  

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  Yes, as long as they’re FDIC-insured (or NCUA-insured for credit unions). Online banks like Ally, Marcus, and American Express Personal Savings offer the same $250,000 FDIC protection as traditional banks.

  The FDIC doesn’t distinguish between online and brick-and-mortar banks. Your deposits are equally protected.

  Learn more: FDIC insurance limits and how to protect deposits over $250,000.

• Can I open a savings account and checking account at the same time?
  

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  Yes. Many banks encourage this and make it easy to link the accounts for transfers. Some online banks even offer higher APYs if you maintain both a checking and savings account with them.

• What if my application is denied?
  

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  Banks must tell you why you were denied. Common reasons:

  • ChexSystems issues: Unpaid negative balance at a previous bank, too many account closures, fraud flags
  • Identity verification problems: Unable to verify your identity through automated systems
  • Address issues: Recent moves, PO boxes (some banks don’t accept these), or international addresses

  What to do: Request a free ChexSystems report (you’re entitled to one per year), resolve any negative items, and try again. Or look for second-chance banking options that don’t use ChexSystems.