The main online banks and what they actually offer
You can open a checking account online at three types of institutions: online-only banks, traditional banks with online options, and credit unions. Each one works differently, moves money at different speeds, and charges different fees—or none at all.
Online-only banks like Ally, Charles Schwab, and Discover have no physical branches. You deposit checks by photographing them with your phone, withdraw cash at ATMs (usually free at certain networks), and handle everything through an app or website. They typically charge no monthly fees and pay interest on your balance, though the rate varies.
Traditional banks like Chase, Bank of America, and Wells Fargo let you open online but also have branches you can walk into. You can deposit checks at ATMs or branches, get a debit card in the mail within 5 to 10 business days, and speak to someone in person if something breaks. Most charge a monthly fee unless you meet a minimum balance or set up direct deposit.
Credit unions are member-owned and often have lower fees than banks. You open online through organizations like Connexus or Pentagon Federal, but you can only withdraw cash at their ATM network or partner ATMs—there are no physical branches to visit. Some credit unions let non-members open accounts if you live in their service area or work in a certain field.
Key Takeaways
- Online-only banks charge no monthly fees and let you do everything by phone or app, but you cannot walk into a branch if you need help in person.
- Traditional banks with online options cost more per month but give you a physical location to visit and usually faster access to cash.
- Credit unions often have lower fees than banks but restrict where you can withdraw cash and may limit who can join.
- You need a valid government ID, a Social Security number or ITIN, and proof of address to open an account at any institution.
- The account is usually open and ready to use within one business day, though your debit card arrives by mail in 5 to 10 days.
What you need before you start
Every bank and credit union will ask for the same core documents. Have them ready before you begin the online form—it takes 10 to 15 minutes if you do not have to stop and find things.
You need a valid government-issued ID: a driver's license, passport, or state ID card. The name on the ID must match the name you use to open the account. If your ID is expired, some banks will still accept it; others will not. Call or check the bank's website first if yours is more than a year out of date.
You need your Social Security number or an ITIN (Individual Taxpayer Identification Number) if you do not have a Social Security number. The bank uses this to check your identity and run a background check through ChexSystems, a database that tracks banking history. If you have unpaid overdrafts or fraud flags from another bank, ChexSystems will flag it.
You need proof of address: a recent utility bill, lease, mortgage statement, or government mail with your name and current address. It usually has to be dated within the last 60 days. A cell phone bill or credit card statement typically does not count. If you are homeless or do not have a utility bill, some banks will accept a letter from a shelter or social services agency.
How the online process actually works
The process is nearly identical across banks. You go to their website or app, click "Open an Account," and answer questions about yourself. The bank asks your name, address, date of birth, employment status, and annual income. None of these answers disqualify you—the bank is building a profile for fraud detection and tax reporting, not deciding whether you deserve an account.
Next, you upload or photograph your ID and proof of address. The bank's system reads these documents automatically using optical character recognition. If the system cannot read them clearly, a person reviews them manually, which can add a day or two. Take photos in good light, make sure all four corners of the document are visible, and keep the image in focus.
You choose your account type (checking, savings, or both), set a username and password, and agree to the terms. The bank then runs a background check through ChexSystems. If you pass, the account opens when ready—you can usually log in and see your account number within minutes. If ChexSystems flags something, the bank may call you to ask about it, or they may deny the account. This usually takes one business day.
Your debit card ships separately and arrives in 5 to 10 business days. Until it arrives, you can transfer money in and out using your account number and routing number, but you cannot swipe or tap to pay. Some banks let you use a temporary digital card in Apple Pay or Google Pay while you wait for the physical card.
Online-only banks: no fees, no branches
Online-only banks are cheapest if you do not need a physical location. Ally, Discover, and Charles Schwab charge zero monthly fees, pay interest on checking balances (rates vary from 0.01% to 4.5% depending on the bank and your balance), and reimburse ATM fees nationwide. You photograph checks with your phone to deposit them—the bank reads the image and credits your account within one or two business days.
The trade-off is that you cannot deposit cash. If you receive cash regularly, you have to go to a grocery store or pharmacy with a MoneyGram or Walmart2Walmart service to convert it to a transfer, or you have to keep a second account at a traditional bank. Some online banks partner with Allpoint or Moneypass ATM networks so you can withdraw cash for free at thousands of locations, but not all of them do.
Customer service is phone or chat only. If your card is lost or stolen, you call the bank and they cancel it when ready. A replacement card arrives in 5 to 10 business days. If you have a dispute with a merchant, you file it through the app and the bank investigates by email and phone—there is no one to meet in person.
Traditional banks: higher fees, physical branches
Chase, Bank of America, Wells Fargo, and regional banks like PNC and US Bank let you open online but charge a monthly fee unless you meet conditions. Chase's basic checking costs $12 per month unless you keep $500 in the account or set up direct deposit. Bank of America charges $12 per month unless you maintain a $1,500 balance or have a savings account linked to it. Some banks waive the fee if you are under 25 or over 65.
The advantage is access. You can deposit checks at any branch ATM, withdraw cash at any branch, and speak to a person if something goes wrong. If your debit card is compromised, you walk into a branch and get a replacement the same day instead of waiting 10 days. If you have a question about a transaction, you can sit down with someone and review it together.
These banks also offer overdraft protection—you can link a savings account or credit card so that if you overdraw checking, the bank automatically transfers money from the other account. Online-only banks usually do not offer this.
Credit unions: lower fees, limited access
Credit unions charge lower fees than banks because they are member-owned and not-for-profit. Many have no monthly fee at all, or charge $5 to $8 instead of $12. The catch is that you can only withdraw cash at their ATM network or partner networks, which are smaller than bank networks.
Connexus Credit Union, Pentagon Federal Credit Union, and Alliant Credit Union let you open online if you live in their service area or meet membership requirements (some require you to work for a certain employer or live in a certain county). Once you are a member, you can use their app to deposit checks by photograph, just like an online bank.
If you need to withdraw cash regularly, check the credit union's ATM network first. Connexus is part of the CO-OP network, which has over 30,000 ATMs nationwide. Pentagon Federal is part of the Allpoint network. If the network is small in your area, you will end up paying out-of-network ATM fees, which erases the savings from the lower monthly fee.
Comparing the three side by side
| Type | Monthly Fee | Physical Branches | Cash Deposits | ATM Access | Customer Service |
|---|---|---|---|---|---|
| Online-only bank | $0 | No | No | Nationwide (reimbursed) | Phone, chat, email |
| Traditional bank | $12 (varies) | Yes | Yes, at branches | Nationwide (free at own bank) | In-person, phone, chat |
| Credit union | $0–$8 | No | Limited or no | Network-dependent | Phone, chat, email |
What happens after you open the account
Your account is live within minutes, but you cannot use it fully until your debit card arrives. While you wait, you can transfer money in using your account number and routing number (the bank provides both when ready after opening). You can set up direct deposit right away if your employer uses ACH transfers.
When your debit card arrives, set up it through the app or by calling the number on the back. The bank may ask you to confirm a small deposit they made to your account to verify you received the card. Once activated, you can swipe, tap, or insert the card at any merchant.
Set up online bill pay if you plan to pay bills by bank transfer. Most banks let you add payees (utility companies, landlords, credit card companies) and schedule payments to arrive on a specific date. The bank sends the payment as an ACH transfer or check, depending on the payee. ACH transfers take one to three business days; checks take 5 to 7 days.
Frequently Asked Questions
Can I open a checking account if I have been denied before?
It depends on why you were denied. If ChexSystems has a record of unpaid overdrafts or fraud, you may be denied again at another bank that uses ChexSystems. Some banks use different background check systems or do not check ChexSystems at all—Chime and LendingClub are known for approving people with ChexSystems records. You can request your ChexSystems report for free at chexsystems.com to see what is flagged.
How long does it take to receive my debit card?
Most banks mail debit cards within 5 to 10 business days. Some banks offer rush delivery for a fee (usually $10 to $25) if you need it faster. Many banks now let you use a temporary digital card in Apple Pay or Google Pay when ready after opening, so you can make purchases before the physical card arrives.
What is the difference between a checking account and a savings account?
A checking account is for regular spending—you get a debit card, write checks, and make unlimited transfers. A savings account is for storing money and earns interest, but limits you to six transfers per month. Most people open both at the same bank so they can move money between them easily.
Do I need a minimum deposit to open an account?
Most online banks and credit unions require no minimum deposit—you can open with $0 and deposit money later. Some traditional banks require $25 to $100 to open. Check the bank's website before you start the process to see if there is a minimum.
Can I open an account if I do not have a Social Security number?
Yes, if you have an ITIN (Individual Taxpayer Identification Number). ITINs are issued by the IRS to people who do not may have access to for a Social Security number but need to file taxes. You provide your ITIN instead of your Social Security number during the process. Some banks accept ITINs; others do not. Call before you explore if you have an ITIN instead of a Social Security number.