Teachable Guide How to Open A Bank Account Online with No Deposit

Filed in Online Banking by on December 1, 2020 0 Comments

Do you want to open a bank account but can’t afford to get started? There are several ways to do this without any deposit required. And it can only take a few minutes to apply for an account from your phone or computer. Here we’ll show you how to do just that.

Can I Open a Bank Account Online With No Deposit?

Yes, you can open a bank account with no deposit. Many banks require you to make a deposit to open an account. But some financial institutions let you delay this step. You will want to find a good free online checking account or credit union with no opening deposit required. Then you will follow these steps to open a bank account.

How to Find the Best Online Bank Accounts to Open with No Deposit?

We recommend you find an online bank or a credit union that does not charge fees, does offer competitive interest rates and allows you easy access to your money. You can search for a credit union online with this Credit Union Locator tool from the National Credit Union Administration.

Many free online accounts have at least some fees, but if you’re a responsible account holder, you can usually avoid them. For example, if you overdraw your account and leave a negative balance for months, you will likely get penalized for that.

In other cases, it’s important to choose an account that fits your life: how often you plan to use the account, whether you plan to write a lot of checks and things like that. For example, an online bank with no minimum deposit may limit the number of free ATM transactions you can make each month.

What Are the Best Online Bank Accounts with No Deposit?

Below are a few of the best free, no-deposit online bank accounts you may likely have to try. It’s still recommended that you check with credit unions in your area as well.

How to Open a Bank Account Online

Gone are the days of spending hours in the bank to open an account, and now you can open your account from your computer or phone in minutes. Usually, it’s even easier if you open a free checking account with no deposit. Follow these four steps to apply for your bank account.

1. Select Your Bank Account Type.

This article primarily addresses opening a checking account. You can also open a savings account with no initial deposit, but you’ll find fewer choices. Checking and savings are the most common kinds of bank accounts.

Checking accounts allow you to receive direct deposits, make payments and withdraw cash from ATMs, among other things. Savings accounts are designed to earn you interest on money you don’t plan to spend immediately while still giving you easy access to your funds.

2. Choose Your Preferred Bank.

There are three main categories of consumer banks.

Online Banks: They feature few if any physical branches. Online banks often pass the savings in overhead costs to customers in the form of fewer fees and higher interest rates, depending on the type of account you open. It can be harder to deposit cash with online banks, and it may be tough to get in touch with a human being if you need help with your account.

Credit Unions: Nonprofit, member-owned organizations that often serve specific communities. They tend to offer better interest rates and charge fewer fees, but there are fewer branches and financial offerings.

Traditional Banks: They offer the convenience of physical branches and ATMs as well as a full suite of financial services. The customer often pays more fees and earns less interest in exchange.

We recommend online banks and credit unions over traditional banks because they generally charge fewer fees and offer better interest rates.

3. Gather Required Documents.

To apply to open a checking online account, you need to have the following items close by for the process to run smoothly and quickly:

  • Home Address
  • Date of Birth
  • Social Security Number or Taxpayer Identification Number (TIN)
  • Driver’s License or Government-Issued ID
  • Previous Address (if you’ve moved within two years)
  • Phone Number/Email Address

If you are under 18, you will need a parent or guardian to agree to supervise your account. Or maybe you’re opening a joint account with a family member or significant other. In either case, you will need the above information for each person who will be associated with your new account.

4. Complete the Online Application Process.

The online bank account opening application can only take a few minutes if you have a phone or computer and the necessary documentation.

Your bank will take you through a series of prompts to verify your identity, confirm the specific product (account) you want and give you a chance to read the terms and conditions. You will type the required information into text fields inside of online forms.

It’s a good idea to read through the bank’s terms and conditions before agreeing. They typically include information about rules, fee structures and interest rates.

How to Fund the Bank Account You Opened With No Deposit

1. Set up Direct Deposit

If you are opening an account to be able to receive money from your employer, you can set up a direct deposit and wait for the money to arrive. Your company likely has a direct deposit form that asks for information about your new bank account, such as bank routing number and your account number. Your company may also request a void check. The HR department usually has this form and will help you with any questions.

2. Transfer Money from another Account

Assuming you don’t have another account at a bank or credit union, you can ask a trusted friend or family member to help you. Give them money and have them send you their bank or credit union money through a service like Zelle or Venmo. These services are free and you can link them to your online bank account.

3. Deposit with Cash

Depositing cash into your bank account online can be less convenient than at a credit union or traditional bank. However, this is usually possible using one of the two methods listed below. And which method (s) the bank offers may be a factor in choosing your bank.

  • Use a linked ATM: If your online bank participates in an ATM network, look up the nearest location online. You can take your cash, fill out a deposit slip and deposit the money in the ATM.
  • Use a prepaid debit card: If your online bank doesn’t participate in an ATM network, you can get a prepaid debit card that’s linked to your bank account. Participating retailers allow you to deposit cash to the card, which you can then transfer to your online bank account. Shop around for a good card to avoid paying fees.

Although for most people, access to banking services is a necessary part of their financial life. There are many options to open a bank account online for free without a deposit. Just be sure to read the terms carefully before choosing an account.

We hope you find this information helpful.

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