How to Open a Checking Account Online

Opening a checking account online often eliminates the need for a trip to a physical bank branch. If you want to open an account online, you should become familiar with the process to keep it quick and easy.

What is a checking account?

A checking account is designed for everyday financial transactions. You can think of it as the central hub for your regular spending, allowing you to deposit and withdraw funds, make payments, and manage your money using debit cards, checks and online transfers.

While all checking accounts serve this basic purpose, one important distinction is that online banks — those without a physical presence — only offer online checking accounts.

Deposits in checking accounts are automatically insured up to $250,000 as long as your financial institution is a member of the Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Administration (NCUA).

How to open a checking account online in 7 steps

The process of opening a checking account online is fairly simple. All you need is a computer or mobile device to get started. Let’s walk through what you can usually expect.

1. Choose a checking account

The first step in opening a checking account is to find the account that best aligns with your needs, goals and preferences. When comparing accounts, pay close attention to fees and features. You’ll need to weigh the costs and the benefits to decide which type of account you want to open.

If you only need the basics, a free checking account may be your best option. This type of account often comes with fewer bells and whistles, but you won’t have to worry about paying monthly service fees. On the other hand, a premium rewards account offers more advanced features, but the costs are higher.

To compare checking accounts, consider the following factors:

• Service fees: While some accounts may be free, others have a monthly maintenance fee that can only be avoided if you maintain a certain balance. Pay attention to monthly fees and any service charges that may apply, such as fees for wire transfers or paper statements.
• ATM and access fees: Consider the bank or credit union’s ATM network. Are ATMs conveniently located near you? Does the bank charge fees for using out-of-network ATMs? Some financial institutions might reimburse these fees up to a certain amount, but others will not.
• Overdraft services: Some banks offer overdraft protection that can help you avoid declined transactions and expensive overdraft fees. Keep in mind that many banks provide multiple overdraft options, and coverage may depend on the account you choose.
• Interest rates: While most checking accounts aren’t designed to earn a significant amount of interest, some high-yield accounts are available. If earning interest on your checking account is a top priority, compare the annual percentage yield (APY) between accounts.

2. Gather your personal information

Before you begin the online application, you will need to collect the necessary information and documentation. Most financial institutions require the following to open a checking account:

• Government-issued photo ID: This is typically a driver’s license, passport or state-issued ID card.
• Social Security number (SSN): If you don’t have an SSN, you’ll need to provide an individual taxpayer identification number (ITIN).
• Proof of address: You can usually provide a recent utility bill or bank statement, but check the bank’s rules. The document should clearly show your name and current address.
• Contact information: This includes your phone number and email address.

3. Fill out an application

Now that you’re prepared, you can apply for a checking account. Visit the bank’s website, find the link to open an account and click it to begin your application. The application will guide you through a series of questions to enter your personal information. It may also be possible to complete this process in person if you live near a branch for your bank or credit union.

The institution may ask you to review and sign a deposit account agreement, which outlines the bank’s terms and conditions.

Once you submit your application, approvals typically occur in minutes, though some banks may take a few business days to process it.

4. Make your first deposit

Some banks require a minimum initial deposit to open the account. Minimum deposits can range from as little as $25 to $100 or more. Even if your bank has no minimum deposit requirement, you typically must fund the account within a month or two to avoid its closure.

The easiest way to add money to your account is usually through an online transfer from another bank.

5. Set up your account

Now that your account is open, you will need to handle some set-up details, such as creating a username and password to take advantage of online banking. You’ll also want to download your bank’s mobile app so you can conveniently check your balance and manage your money on the go.

Take some time to explore online and mobile banking features. You may also want to set up alerts for a low balance, large deposit or suspicious account activity.

6. Arrange deposits and payments

After the initial deposit, make sure your account is consistently funded. One of the best ways to do this is to work with your employer to set up payroll direct deposits.

7. Activate your debit card

Once your debit card arrives, you will need to activate it before you can start using it for purchases and withdrawals.

If you prefer to pay by check, you’ll also need to order a checkbook. You can usually do this online or by contacting the bank directly.

With your new debit card — and your checkbook, if you ordered one — you’re ready to start using your new checking account for your everyday needs.

What to do if your application is rejected

Your checking account application could be rejected for a few reasons: negative banking history, suspected fraud or inability to verify your identity. The information in your ChexSystems report, which banks use to screen applicants, can reveal why you were turned down.

You can request a free copy of your report annually or when you are denied a bank account. Visit the ChexSystems website to request your report.

If you find errors on your ChexSystems report, you can file a dispute.

But if your application was denied because of your banking history, you may want to consider opening a second-chance checking account. A second-chance account can help you rebuild your banking history and access some of the same features offered by a traditional checking account.

Frequently asked questions

Can you open a checking account online instantly?

You can typically open a checking account online in just a few minutes, though you may need to wait about a week for your debit card to arrive in the mail.

Is it safe to open a checking account online?

It is generally safe to open a checking account online, but as always, do your research to choose a reputable financial institution.

How old do you have to be to open a checking account?

You usually need to be 18 or older to open a checking account, though some banks offer starter accounts for teenagers that can be opened with a parent or guardian as a co-owner.