Opening a bank account online is quick and easy. It can take only a few minutes and save you travel to a bank branch. And if you open an account with an online bank, this may be your only option. The best internet banks are insured by FDIC and offer higher rates than typical land banks and often charge low fees or no fees. Can you open a bank account online without a deposit?
What information do you need before opening an online bank account?
Here is the documentation you need to open an online bank account:
- Social security number or, for non-citizens, a different identification number.
- A valid driving license or other government-issued ID.
- If your new account requires an initial deposit, you will also need information about the debit card or route numbers and accounts for another bank account that you have. You can find them on your check or by logging into your account’s online dashboard.
Contact information: banks need your home address, telephone number and email address. Although you operate in a virtual world, federal law requires you to provide a physical address – where you actually live – but you can also provide mail as an office mailbox or equivalent as your mailing address
Financing information: Banks often require a first deposit to open an account; usually between 25 and 100 USD. To do this, you can use a credit or debit card. Alternatively, you can enter routing and account numbers to create a link to another bank account.
How can you fund your account?
When you open an online account, the initial payment usually means making a transfer from your existing account. If your entire bank is online, you can also pay by check or money order. And if your bank has local branches, you can also visit one of them to deposit cash.
After entering the transfer details, select the amount that meets any minimum balance or initial payment requirement. It usually takes a few days to process the funds, and then you can start managing your new account.
Challenges Opening an online account
In some cases, you need to visit a branch or provide additional documentation to open an account. Some common causes are:
“Thin” credit: banks open an account verifying your identity. One way they do this is to check the loan. (Yes, they check your loan, even if you don’t borrow money.) If you don’t have too much credit history – because you’re young and you haven’t borrowed enough to get a loan, for example – they’ve won ‘find anything. Therefore, they may require a visit to the branch with a government issued ID to open an account.
Under 18: Persons under 18 cannot open bank accounts on their own. If you are a minor and want to have a checking or savings account, there are bank accounts for people under 18, but you will need an adult co-owner of the account and you may need to visit the branch in person.
To open a business account, you need an employer identification number (EIN); constituent documents, such as an organizational agreement and an operational agreement; and federal, state and local business licenses and permits, if applicable.