One of the first steps toward financial independence is opening a bank account. A checking account provides a safe place to store and manage your money. It provides access to your everyday finances, so knowing how to open a checking account and what to look for is essential.
Opening a checking account online is straightforward if you understand the eligibility requirements and have the right documents ready to make the process as smooth as possible.
Read on to learn more about how to open a checking account online.
What to consider before opening a checking account
A checking account is a type of bank account that allows you to deposit and withdraw money quickly.
Unlike savings accounts, checking accounts hold your money for the short term. Money stored in a checking account is typically used for everyday spending and expenses, like paying bills.
That being said, checking accounts aren’t all alike. As you compare checking accounts, consider how they’re similar or different when it comes to:
- Minimums. A checking account may have an opening deposit requirement and a minimum balance requirement to avoid a monthly fee or earn interest.
- Fees. Checking account fees, including monthly maintenance fees and overdraft fees, can vary greatly from place to place.
- Online and mobile banking services. Online and mobile banking should be user-friendly and allow you to do everything you need to manage your money, whether it’s checking your account balance or paying bills.
- ATM access. Some banks have larger ATM networks than others and some charge fees for ATM withdrawals at another bank’s machine.
- Interest rates. If you’re considering a rewards or interest checking account it’s helpful to know what APY you could earn and what’s required to earn interest.
- Online vs. in-person banking. An online checking account can be a fee-friendly way to manage your money, but you may lean towards a traditional bank if you’d like to be able to visit a branch.
- Account enrollment. Most banks allow you to open a checking account online with your personal information, including your date of birth and Social Security number, but some accounts may require you to visit a branch to open.
- Other products. You may want to open other accounts to reach your financial goals, such as a savings account or certificate of deposit. So it’s helpful to know what else a bank offers besides checking accounts.
How to open a checking account online
Ready to get started? Here’s how to open a checking account, from researching financial institutions to opening an account.
1. Choose your financial institution
First, choose a bank through which you want to open your account. Consider the features, perks, fees, eligibility requirements, ATM locations, and products offered before opening an account. Research your options to find the best choice for you.
When researching financial institutions, look for one that is accredited by the Federal Deposit Insurance Corp (FDIC) for banks or the National Credit Union Administration (NCUA) for credit unions. Both insure deposits up to $250,000 per account, giving you peace of mind that your money is safe.¹
2. Pick the type of checking account you want
There are several types of checking accounts, including a traditional checking account, a premium checking account, a high-interest checking account, a student checking account, and a business checking account. Before opening an account, determine the type that best meets your needs.
- Traditional checking accounts typically issue account holders a debit card and checks, providing online bill pay services and overdraft protection. Many come with no fees, though conditions such as maintaining a minimum balance may exist.
- Premium checking accounts provide the same perks as traditional accounts, plus some extras like waived ATM fees, a free safe deposit box, and free checks and money orders. Account holders may be required to maintain a higher minimum balance or pay a fee.
- High-interest checking accounts work similarly to traditional ones but have a higher annual percentage yield (APY). Often, the APY will go up if you maintain a minimum balance or combine your checking account with investment accounts under the same financial institution.
- Student checking accounts are designed for students between 18 and 23. They often provide benefits like overdraft forgiveness and ATM fee reimbursement.
- Senior checking accounts are meant for adults over 55 or 60. They can offer perks for those living on a fixed income, such as ATM fee reimbursement and waived monthly maintenance fees.
- Business checking accounts are intended for business owners. They issue business checks and may allow you to receive debit and credit card payments.
Comparing the benefits of a checking account can help you decide which type is best
3. Gather your documents
To open an online checking account, you’ll need documents that verify your identity and address. Consult a list of documents you need to open an account so you are prepared.
At the very least, you’ll need a government ID such as a driver’s license. The exact documents required may vary between financial institutions, so contact the online bank and ask if you’re unsure. Remember that if you want to open a joint bank account with a spouse you’ll both need to have the required documents.
4. Complete an application
Go to the institution’s website and look for the online application page. For example, you can open an account through Chime completely online in just a few minutes.
After you submit your application, the financial institution will review it. During this process, they may check your banking history.
If approved, you’ll receive documents and account materials in the mail, like a debit card.
5. Fund your account and set up direct deposit
Once your application is approved, you may need to provide funding. The minimum amount for the initial deposit varies between financial institutions but could be as little as $25 or as much as $100 or more.1 Some banks and credit unions allow you to open a bank account with no money.
You can set up direct deposit if you want your paycheck sent directly to your account. Not only is direct deposit an easy way to get paid, but it may also help you avoid monthly fees – some financial institutions waive fees for setting up direct deposit.
To set up direct deposit, give your employer your new account information and fill out a direct deposit form to get it started. Learn more about how to set up direct deposit with Chime.
Online vs. traditional checking accounts
Should you open an online checking account or stick with a brick-and-mortar bank? Both have pros and cons to consider. First, let’s look at the advantages and disadvantages of online checking accounts.
Online checking account pros | Online checking account cons |
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Now, let’s look at the pros and cons of traditional checking accounts.
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Types of fees for checking accounts
Whether you want to know how to open a checking account online or at a branch, it’s important to be aware of fees. Here are some of the most common checking account fees:
- Monthly fees. Banks can charge monthly maintenance fees or service fees just for having an account. You may be able to waive these fees by meeting a minimum balance requirement or enrolling in direct deposit.
- Overdraft fees. An overdraft fee may apply to your account if you don’t have enough money to cover withdrawal transactions. Banks can charge multiple overdraft fees per day.
- Out-of-network ATM fees. If you use another bank’s ATM to withdraw cash, your bank could charge you a fee for going out-of-network.
- Stop payment. A stop payment fee may apply if you ask your institution to stop processing an outgoing transaction like a bill payment or a check.
- Paper statement fee. To encourage enrollment in electronic statements, some banks charge a small fee to receive paper statements.
- Foreign transaction fee. Your bank may charge a foreign transaction fee when you complete transactions from your account in a foreign currency.
If you’re not sure what a bank charges, ask to see a copy of the fee schedule for the type of account you’re opening.
Take control of your money with a checking account
A checking account is a foundational tool for money management. Whether you need to pay bills, buy groceries, or set aside a little money in savings, it all starts with having a checking account. Online banks make the process easier than ever to open an account online.
Once your account is set up, find out how much money you should keep in your checking account to maintain financial stability.
FAQs
How much money do I need to open an online bank account?
Many banks have minimum deposit requirements to open a new account. This minimum deposit will vary from one bank to the next and depends on the type of account you open.
However, you can open a bank account with no money. There’s no minimum deposit requirement when you open a Chime checking account, for instance, so you can put as little (or as much) in your account as you’d like.
How much does it cost to open an online bank account?
It doesn’t typically cost anything to open a checking or savings account. Still, a bank or financial institution might require a minimum deposit at or around the time of opening the account. Minimum deposits usually range from $25 to $100, depending on the account.²
Some financial institutions may charge bank fees, like a monthly maintenance fee, once you’ve opened an account. You may be able to avoid monthly fees if you meet specific requirements.
How long does it take to open a checking account online?
Opening a checking account online is a quick and easy process. In person, you might end up at a brick-and-mortar branch for an hour or so, going through the documents and application process. If you open a checking account entirely online, the process is quicker.
What are the benefits of opening an online checking account?
There are several benefits to opening a checking account, such as simplifying your everyday finances by automating deposits and payments. You can receive your money from a paycheck much faster by arranging direct deposits of your money into a checking account. And making transfers to other people with bank accounts is much easier when you have a checking account.
Can I open a free bank account online?
Many financial institutions allow you to open a free checking account online. You may need to make a small deposit to open the account, but that money belongs to you and is not a fee.
What is the easiest bank to open a checking account?
Many online banks have user-friendly online applications for checking accounts — including Chime.
To open a Chime checking account, you must provide your name, address, and Social Security number and set up a password. Once approved, you can use your account immediately.
Which banks allow you to open a bank account online?
Do I need my Social Security card to open a bank account?
You don’t need your Social Security card to open a bank account but banks can ask for your Social Security number to verify your identity. Banks may accept other forms of ID as well, like a Taxpayer Identification Number (ITIN).³
Why would I be denied a bank account?
The most common reason someone is denied a bank account is a negative ChexSystems report. ChexSystems is a credit reporting system for banks that collects negative account information. For instance, if you have an outstanding overdraft balance and the bank reports it to ChexSystems you may be denied an account elsewhere.⁴
Which bank does not require SSN?
A variety of banks and credit unions may allow you to open a bank account without a Social Security number but you’ll need to have other forms of ID. For example, you may need to have a valid passport, ITIN, or Permanent Resident card to open your account. You may need to visit a branch to open a bank account without an SSN vs. opening your account online.⁵
Most banks today allow you to open an account online – whether they’re online-only banks or they have brick-and-mortar locations. And you could open a bank account with no money since online banks may set the opening deposit requirement at $o or just $1.