Complete Guide for Beginners How to Open a Bank Account Online

Filed in Online Banking by on November 25, 2020 0 Comments

How to Open a Bank Account Online – In a busy world, being able to do something online is invaluable. Fortunately, you can complete most of the online banking tasks, in many cases even opening an account. This means you don’t have to go to the branch or print and sign paper forms. This is all done digitally, and once your account is open, you can transfer funds and pay bills online.

Eligibility Criteria to Open a Bank Account Online

To open an account online, you’ll generally need to:

  • Be a US resident with a US residential address
  • Be at least 18 years old — some banks will let minors open an account with a guardian
  • Be able to provide a government-issued ID

Requirements to Open a Bank Account Online

If you are at least 18, you can apply for most accounts online. You will be given a checklist of the items you should have with you before you apply. If you are already a customer of the bank, make sure you have your customer ID or your account number.

  • Identification

Requiring ID helps banks protect you from fraud. If someone gets ahold of your Social Security number, they could apply for an account in your name to hide illegal money — or even open a line of credit. Banks verify your ID to make sure it’s really you opening the account, and not someone trying to steal your identity.

  • Personal information

Most accounts allow you to apply for a joint account with one or more people. If you’re applying for a joint account, all account holders will need to provide their personal information, including Social Security number(s) and ID.

  • Deposit

Some institutions will let you open a bank account online with no deposit, but most times you’ll have to put a little money down. Minimum required deposits often increase with a higher interest rate or better features offered.

How to Open a Bank Account Online

Follow these steps to open your bank account online.

1: Shop Around To Find the Best Bank

Shop around to find the best bank account. Factor in the card type, minimum balance requirements for savings accounts, whether you can bank online or via an app, and any fees, including ATM withdrawal fees, monthly fees and whether the account waives fees if you make direct deposits.

2: Decide Your Type of Account

If you open a single account, you’re the sole owner and no one else can access your money. But with a joint bank account, you share ownership with someone else, usually a family member, significant other or business partner. They have equal access to the account and can use the money however they wish.

3. Apply For Your Account Online

Click Go to site and a new window will open, sending you to the account provider’s website and a secure online application. You’ll need to provide basic information about yourself such as your name, date of birth, address and social security number. Make sure you have this information on hand before you start the application as the webpage can time out and close if you leave your computer unattended for too long.

On completion of an online application for a bank account, you’ll get an email from the account provider with information about what happens next. This email should come within a minute or two after you submit the application to the bank. It may come with instructions on verifying your identity, or you may need to do that first.

READ ALSO: How Does a Home Equity Line Of Credit Work

4. Verify Your Identity

You will need to provide a government-issued ID before you’re approved for an account. Most banks will let you take a picture of your ID with your phone, though some banks require that you verify your identity in person. If you’re already a customer of the bank, you may be able to skip this step.

5. Make a Deposit

Most accounts will require you to make an opening deposit using a debit card or an account and routing number for an existing bank account. If this is your first bank account and you plan to make an opening deposit in cash, you’ll likely need to sign up for an account at a bank branch.

6. Get your Debit Card

If the account you registered has a debit card, it will be delivered by mail after you receive approval – you will find out how long it will take for delivery in the confirmation email. The debit card and PIN are sent to you separately for security reasons. When you receive your card, you need to sign and activate it so that you can withdraw money. This is a simple process that can be done over the phone or over the Internet.

Your account is ready to go. You’ll be able to make deposits and withdrawals, as well as use any other features associated with your account.

Setting up Internet Banking

This lets you manage your money and make payments to other accounts from your phone, computer or tablet. Download the account provider’s app and follow the on-screen instructions to set up your online banking. Switch your direct debits and automatic payments. If you signed up for a checking account, decide if you want to transfer all of your automatic payments to your new account. If so, you’ll need to sign into your existing accounts with your creditors and change your bank account information.

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