Can i open a bank account online and use it right away

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If you’d rather do your banking with a keyboard or touch screen instead of standing in line to see a teller, you have plenty of company. In 2022, more than three-quarters (78%) of Americans with bank accounts prefer digital banking through a mobile app versus going to a branch in person, according to an Ipsos-Forbes Advisor survey.

Online banking is winning converts due to the convenience, speed and low cost of managing your money digitally. Those positives all extend to the process of opening an account online. Although some customers are more comfortable setting up a new account with a banker face-to-face, others are happy to use their phone or computer.

And when it comes to the rapidly increasing number of strictly digital banks, opening an account online is the only option.

How to Open a Bank Account Online

It’s generally easy to open a bank account online—it may take as little as 15 minutes. That’s less time than you might need to drive to the nearest bank lobby.

The process begins with selecting an institution. The top things to look for in an online bank include FDIC insurance, lots of free ATMs, financial management and investment tools, high-yield savings accounts and an array of other banking products. You can shortcut the selection process by choosing one of the best accounts for digital banking.

Once you’ve chosen an institution, visit its website and click on the link to open a new account. Each bank has a slightly different process, but these are the typical questions you’ll need to answer:

  1. What is your ZIP code? This location information tells the bank which banking regulations govern the types of accounts and services it can legally offer you.
  2. Are you an existing customer? This could speed things up. If you already have a car loan or home mortgage at the bank, you might avoid having to re-enter much of your information for this new account.
  3. Are you applying with someone else? If this is the case, you’ll likely be asked to confirm that you’re submitting a joint application and that you have the permission of the co-applicant.
  4. What type of account would you like to open? You may want to do basic banking with a checking account or savings account, save with a certificate of deposit, put money aside for retirement using an IRA, or even open a brokerage account. If you’re looking for, say, a checking account, you’ll need to compare fees, interest on balances, and whether you’ll receive free checks.
  5. So, who are you? Most of your time opening an account will be spent providing the bank with information about you. This will generally include your full name, date of birth, address, phone and email. You may be asked about your citizenship status, and be quizzed about your job and main source of income. If the account pays interest, you may be asked if you’ll need to have any of that interest income withheld for taxes. 
  6. What features do you want on your account? You might need to choose if you want overdraft protection, personalized checks, a debit card, and so on.
  7. What username and password will you use? Naturally, keep these key identifiers safe, and don’t forget them. Often you’ll also be asked to select one or more security questions and answers to help you access your account if you ever get locked out. Never go with information you’re likely to forget.
  8. Are you prepared to make a deposit? Some banks will allow you to set up a new account without making a deposit. But if a deposit is required, it’s often a small amount, such as $25 or $100. You can make your deposit via an ACH transfer, credit card or debit card, if you already have an account elsewhere. Otherwise, you will likely need to bring cash to a banking location.
  9. Are you sure about your answers? Once you’ve entered your details, you’ll normally be asked to confirm that it’s all correct. Take a moment to be certain. If you’ve given some wrong information, you could find yourself subject to civil and criminal penalties. At minimum, the bank may decline your application if it turns out to contain misstatements.
  10. Is it OK to peek at your credit? Somewhere around the “submit application” button, you may see a notice that you are giving the bank permission to check your credit report. This will be done to confirm your identity and see if you have a history of difficulties dealing with creditors. The inquiry should not affect your credit score. The bank may also let you know that you’re agreeing to be called or emailed if there are questions about your account.

Once your application has been submitted, you may get an instant response indicating your application has been approved.

But with some banks it could take hours or days. You might be able to check the status of your application online. At the very least, you’ll see a phone number you can call for help. If there’s a problem, you may have to go into a branch to finish the application.

Once the approval comes, you may be able to use your account instantly, including to transfer funds, and your balance may start earning interest right away. But delivery of printed checks or a physical ATM card could take a few days or even weeks.

How to Open a Business Bank Account Online

You are more likely to have to visit a branch if you are opening an account for your business. Banks are less willing to open business accounts without getting a chance to meet you and look over your paperwork.

Otherwise, the process is much the same. To start, take a look at today’s best business checking accounts to help you select a financial institution.

One difference is you’ll likely find more types of accounts: basic accounts for small businesses, and accounts with features for growing firms, nonprofits and more. Accounts also may vary by the number of free transactions per month that will be allowed and the cost for additional transactions over the limit.

Similar to when you’re opening a joint account, you may be asked to certify that you have the authority to open the account in the business’s name. You’ll also need to identify the type of business you have: sole proprietorship, partnership, LLC, etc.

Funding your account is similar to funding a personal account. Some business checking accounts won’t require any deposit to open.

What Do You Need to Open a Bank Account Online?

Federal law requires banks to identify anyone opening an account. This means you’ll need to provide at least the following information:

  • Full legal name
  • Address
  • Date of birth
  • Identification number

For a U.S. citizen, the identification number is your Social Security number. Alternatives for noncitizens include a passport number or photo ID issued by another government. You won’t need to send in a photo or scan of your ID document if the bank uses credit history information to verify your identity.

You’ll also need to initiate the ACH transfer or debit or credit card transaction to provide your opening deposit. Other options include delivering a check or cash to the bank.

Although it’s generally not stated on the online applications, you’ll likely need a reasonably clean credit history as well. Banks can reject your application to open an account. That’s more likely to happen if you have a history of fraudulent behavior or accounts left with negative balances.

If you’re opening a business account, you’ll also need copies of your business formation documents, such as articles of incorporation, any ownership agreements or a business license. You may be able to scan and email or fax these to the bank to avoid having to visit a branch.

How Old Do You Have to Be to Open a Bank Account Online?

Though some banks have a minimum age of 13 or 14, a person can generally open an account at any age, though a child under age 18 will need to have an adult parent or guardian as a co-signer. 

A minor also will need a Social Security number in order to be approved as an account co-owner.

Find The Best Online Savings Accounts Of 2022

Bottom Line

You can open a bank account online in less time than it’s likely to take to go to the nearest branch. The process is straightforward and doesn’t always require an opening deposit of money.

As more bank customers shift their activities online, opening an account online is likely to become the standard way to get started with a new bank.

Can I use my bank account as soon as I open it?

Some banks take several days to process an application and will run a credit check as part of this. They'll look into your financial behaviour, how much you've borrowed and if you make repayments on time. You can start using your bank account as soon as the bank approves it.

Can I use online banking straight away?

You can start using your account as soon as your application has been accepted, whether that's online or in branch.

What bank account can I open online instantly?

For those without a deposit account, many banks open accounts for most customers online..
BayVanguard Bank*.
Altamaha Bank..
Androscoggin Bank*.
Axos Bank*.
BankFive..
Bank of America*.
Bank of Travelers Rest..
Bank Independent*.

How long does it take to open an online bank account?

Applying for a bank account online is quick, easy and secure – it takes just 5 to 10 minutes to open a bank account. Before staring, you need to decide whether you're opening a joint bank account or an individual bank account. You also need to decide which type of checking account will best serve your needs.