What happens when you open an online bank account
You create a bank account entirely through a website or app, without visiting a physical branch. The bank verifies your identity using information you provide—usually your Social Security number, driver's license, and proof of address—then opens the account and issues you a routing number and account number within minutes to hours. You can start depositing money and making transfers right away, though some banks hold initial deposits for a day or two.
Online banks have no physical locations, so they operate with lower overhead than traditional banks. This means they often offer higher interest rates on savings accounts and checking accounts, lower or no monthly fees, and no minimum balance requirements. The tradeoff is that you cannot deposit cash directly at a branch—you deposit by transfer, mobile check deposit, or ATM network.
Key Takeaways
- You will need a valid government ID, Social Security number, and proof of your current address to open an account.
- The entire process takes 10 to 30 minutes online, and most banks fund your account within one business day.
- Online banks typically charge no monthly fees and offer no minimum balance, but you cannot deposit cash at a branch.
- You can deposit checks using your phone camera, transfer money from another bank account, or use ATM networks to withdraw cash.
- Some banks require an initial deposit of $0 to $25, while others have no opening deposit requirement.
Gather your documents before you start
Have these items ready before you begin: a valid government-issued ID (driver's license, passport, or state ID), your Social Security number, and a recent utility bill, lease, or bank statement showing your current address. The bank will ask you to photograph or upload these documents, or you may type in the information and the bank will verify it against public records.
If you do not have a Social Security number—because you are a non-citizen or a minor—some online banks will still open an account, but the process is different. Minors typically need a parent or guardian to co-sign, and non-citizens may need an Individual Taxpayer Identification Number (ITIN) instead. Check the specific bank's requirements before you start, because not all banks accept these situations.
Choose a bank and start the application
Visit the bank's website or download its app, then look for a button labeled "Open an Account," "Sign Up," or "get your free guide." You will be asked to choose an account type—most online banks offer a checking account, a savings account, or both. Some banks let you open both at the same time; others require you to open checking first and add savings later.
Enter your email address and create a password. This becomes your login for online banking. The bank will send a verification email to confirm your address is real. Click the link in that email to continue.
Provide your personal information and verify your identity
The bank will ask for your full name, date of birth, Social Security number, and current address. It will also ask for a phone number and may ask for your employment information, though this is optional at most banks. Type this information carefully—errors can slow down verification.
Next, the bank verifies your identity. Most online banks do this instantly by checking your information against credit bureaus and public records. Some banks ask you to photograph your ID and proof of address using your phone camera. A few banks use video verification, where you speak to a representative on camera who watches you hold up your ID. This step usually takes less than 10 minutes.
If verification fails, the bank will tell you why—usually because the name or address you entered does not match public records. You can correct the information and try again, or contact the bank's support team for help.
Fund your account and set up transfers
Once your account is open, the bank will show you your routing number and account number. You can now receive deposits. To fund the account yourself, you have three main options: transfer money from another bank account you own, deposit a check using your phone camera, or visit an ATM in the bank's network and deposit cash there.
To transfer from another bank, you will need the routing number and account number of the account you are transferring from. The transfer usually takes one to three business days. Some banks offer faster transfers (same-day or next-day) if you pay a small fee or meet certain requirements, like setting up direct deposit.
Mobile check deposit works by photographing the front and back of a check using your phone. The bank processes the image and credits your account, usually within one business day. Cash deposits require you to find an ATM in the bank's network—most online banks partner with networks like Allpoint or MoneyPass that have thousands of ATMs nationwide.
Understand fees, limits, and account features
Most online banks charge no monthly maintenance fee, no overdraft fee, and no minimum balance. However, some charge fees for specific actions: wire transfers (usually $15 to $25), international transfers, or expedited transfers. Read the fee schedule before you fund the account so you know what to expect.
Online banks also set limits on how many times per month you can transfer money out of a savings account. Federal rules historically limited this to six transfers per month, but this rule was suspended in 2020 and has not been reinstated. Individual banks may still set their own limits, so check your bank's policy. Checking accounts have no transfer limits.
Most online banks offer a debit card that arrives by mail within 5 to 10 business days. You can use this card to withdraw cash at ATMs and make purchases anywhere Visa or Mastercard is accepted. Some banks let you use a temporary digital card in your phone's wallet while you wait for the physical card.
What to do if verification fails or your account is not approved
If the bank cannot verify your identity automatically, it will ask you to upload documents or speak to a representative. This usually means your name, address, or Social Security number does not match public records—common reasons include recent moves, name changes, or errors in how you typed the information.
Contact the bank's customer support team and explain the issue. Bring a copy of your ID and proof of address. Some banks will rerun verification after you correct the information. If the bank still cannot verify you, it will close the application and may suggest you visit a physical branch or try again later.
A small number of people are denied accounts because of their banking history—for example, if they have unpaid overdrafts at another bank or a history of fraud. The bank will tell you if this is the reason. You can dispute the information or try a different bank that has less strict approval standards.
Frequently Asked Questions
How long does it take to open an online bank account?
The application itself takes 10 to 30 minutes. Identity verification is usually instant, but can take up to 24 hours if the bank needs to review documents manually. Your account is typically ready to use within one business day, though some banks fund it within hours.
Can I open an online bank account if I do not have a Social Security number?
Some online banks accept an Individual Taxpayer Identification Number (ITIN) instead. Others require a Social Security number and will not open an account without one. Call the bank before you apply to confirm whether it accepts ITINs.
What if I need to deposit cash but the bank has no ATMs near me?
Most online banks partner with nationwide ATM networks like Allpoint or MoneyPass with thousands of locations. Check the bank's website to see which network it uses and search for ATMs in your area. If no ATMs are nearby, you can transfer money from another bank account or deposit checks by phone.
Do I need an initial deposit to open an account?
Most online banks require no opening deposit, or a very small one ($0 to $25). A few banks require $100 or more. Check the bank's website before you apply to see whether an opening deposit is required.
Can I close an online bank account if I change my mind?
Yes. Log into your account online or call customer support and request account closure. The bank will ask where you want any remaining balance sent. Most banks close accounts within one to three business days and mail any remaining funds to your address on file.