How Do You Open a Bank Account Online?

1. Compare Online-Only Banks vs. Traditional Banks

Just as you shop around for a car or for car insurance, you should compare online-only banks and traditional banks before setting up an account online. As you're doing your research, consider whether an online-only bank or a traditional bank will best meet your needs.

The most obvious difference between online-only banks and traditional banks is the availability of in-person customer service. In many instances, online banks operate no branches or just a few. Therefore, customer service is typically limited to online or over-the-phone help.

On the other hand, traditional banks generally operate large networks of branches where you can do in-person business, such as making deposits or taking out a loan. As of December 2025, banks maintained more than 78,000 physical branches across the U.S.

The chart below shows key differences between online-only banks and traditional banks regarding ATM access, fees and more.

Research Online-Only Banks

The U.S. system of traditional banks dates back to the late 1700s—centuries before digital banking was invented. As a result, traditional banks tend to have a much longer track record than many online-only banks do. Therefore, you should carefully check out an online-only bank before opening an account there:

• Visit the online-only bank's website. Do you see spelling errors, no mention of bank officials or other information that doesn't look right? If so, proceed cautiously.
• Read online reviews. Reviews offer insights about customer service and other elements of an online-only bank's operations. Also, look at the annual J.D. Power U.S. Direct Banking Satisfaction Study, which ranks online-only banks based on various customer satisfaction factors.
• Search the bank's name online. You'll want to pay attention to any negative news about an online-only bank.
• Use the BankFind tool from the Federal Deposit Insurance Corp. (FDIC). Here, you can learn whether FDIC insurance covers deposits at various banks. If you're considering a credit union, use the Research a Credit Union tool operated by the National Credit Union Administration (NCUA) to see whether its deposits are NCUA insured. Both FDIC and NCUA insurance cover eligible deposits up to $250,000 per depositor, per insured institution and per ownership category.

If you ultimately decide to go with a traditional bank, you should dig into their online reviews and other information as well. After all, you want to be satisfied with a traditional bank and know that its deposits are insured.

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2. Choose the Type of Bank Account You Want

Based on your needs, you may decide to open a checking account, savings account, high-yield savings account (HYSA) or certificate of deposit (CD) account at an online-online bank or traditional bank.

Checking Account

A checking account generally is designed to handle everyday income and expenses. Normally, this type of account also lets you write checks, which generally isn't an option with a savings account. In addition, a checking account may offer perks such as a debit card or online bill pay, whereas a savings account often doesn't provide a debit card or online bill pay.

Savings Account

A savings account normally serves special purposes, such as setting up an emergency fund or stashing cash for a vacation. Although a checking account might not pay interest, a savings account usually does.

High-Yield Savings Account

HYSAs usually offer higher interest rates than traditional savings accounts do. Remember that even though a savings account may offer some of the same services a checking account does, your ability to withdraw cash from a savings account may be restricted to six times a month.

Certificate of Deposit Account

A CD is a type of savings account that often pays a higher fixed interest rate in exchange for not withdrawing your money for a certain period of time (known as a term).

Bank Account for Minors

Keep in mind that although some banks let teenagers open accounts on their own, minors under the age of 18 normally can't open a savings account or checking account that's solely in their name. Instead, a parent or guardian must be involved in setting up a custodial account or joint account.

A custodial account (UGMA or UTMA) belongs to the minor, but it's managed by a parent or guardian (usually until the accountholder turns 18, 19 or 21). Meanwhile, a joint account gives access to both the minor and a parent or guardian, with the adult being able to monitor or control account activity.

3. Gather Necessary Information

When you're opening a bank account online, the bank will request personal data and documents. Keep in mind that document requirements vary from bank to bank. Among the items you might need to have on hand are:

• Contact information, such as your name, address, phone number and email address.
• Social Security number or individual taxpayer identification number (ITIN) if you're a non-U.S. resident without a Social Security number.
• Valid government-issued photo ID, such as a driver's license, passport or military ID.
• Second form of ID, such as a Social Security card, a utility bill with your name and address on it or a birth certificate. This requirement often applies to non-U.S. residents.

Here's the information that generally must be provided when opening a bank account for a minor:

• Minor's name, date of birth and Social Security number or individual taxpayer identification number
• Parent's or guardian's Social Security number or ITIN
• Parent's or guardian's valid photo ID, such as a driver's license or passport
• Parent's or guardian's contact information, such as a phone number or email address

4. Make a Deposit

Once you're approved to open a bank account online, you might need to deposit some money to get started. The initial deposit might be $25 to $100. However, some banks don't require a minimum deposit.

If you must make an initial deposit, you usually can provide a bank account or debit card number to transfer money from an existing account to the new account. If this is the first account you're ever opening at a traditional bank, you might want to visit a branch to make your opening deposit in cash.

Tip: Your initial deposit for a bank account might not be available to use right away. To find out how long you may be unable to access the money, read the bank's "funds availability" policy. You normally can find this disclosure in the bank's account-agreement paperwork or on the bank's website.

Frequently Asked Questions

The Bottom Line

Whether you're opening a checking account, savings account or CD online, make sure you've got the required information and documents, you've gone over what a bank does (and does not) deliver in terms of products and services, and reviewed fees and interest rates. Also, find out whether the bank's deposits are insured. Before you entrust even $1 of your money to a bank, you should be able to trust the bank that's keeping your cash.