Open Bank is a real bank, but it operates differently from the brick-and-mortar banks you may be used to
Open Bank is a federally chartered bank based in Charlotte, North Carolina. It holds a real banking license from the Office of the Comptroller of the Currency (OCC), which is the same federal regulator that oversees traditional banks. This means Open Bank can legally hold your deposits, issue debit cards, and offer checking and savings accounts.
The key difference is that Open Bank operates as an online-only bank — there are no physical branches to walk into. You manage your account through a mobile app or website. This is not unusual. Many legitimate banks, including some of the largest in the country, operate this way. The fact that a bank is online does not make it less real or less safe.
Your deposits at Open Bank are insured by the Federal Deposit Insurance Corporation (FDIC), the same government agency that insures deposits at any other bank. This means if Open Bank fails, the FDIC will cover up to $250,000 of your deposits per account type. This protection is the same whether you bank online or in person.
Key Takeaways
- Open Bank holds a federal banking charter from the Office of the Comptroller of the Currency and is a real, regulated bank.
- Your deposits are protected by FDIC insurance up to $250,000 per account type, the same as at any other bank.
- Open Bank is online-only, meaning you cannot visit a physical branch, but you can manage your account through an app or website.
- Before opening an account, check the current fees, interest rates, and features on Open Bank's website to see if they match what you need.
How to verify a bank's federal charter yourself
If you ever wonder whether a bank is real, you can check it yourself in about two minutes. The OCC maintains a public database called the National Bank Lookup at occ.treas.gov. You can search by bank name, and it will show you whether the bank holds a federal charter, when it was chartered, and where it is headquartered.
You can also search the FDIC's bank database at fdic.gov. Type in the bank name, and the FDIC will tell you whether your deposits are insured there and up to what amount. If a bank does not appear in either database, that is a red flag — it means it is not federally regulated.
This is a useful habit to build. Scammers sometimes create fake websites that look like real banks, so checking the official government databases takes only a moment and removes all doubt.
What makes Open Bank different from traditional banks
Open Bank was founded in 2018 and is part of a wave of newer online banks that offer lower fees and higher interest rates on savings accounts than many traditional banks. Because Open Bank has no physical branches, it has lower overhead costs, and it passes some of those savings to customers through lower or no monthly fees.
However, online-only banking means you cannot deposit cash at a branch or speak to someone in person. Some people find this inconvenient. Open Bank does allow you to deposit checks through its mobile app by taking a photo, which is a common feature at online banks. If you need to deposit cash, you may need to use an ATM or a partner bank's branch, depending on what Open Bank offers at the time you open your account.
Before you open an account, visit Open Bank's website and read through the fee schedule and account features. Look for things like monthly maintenance fees, overdraft fees, ATM access, and the interest rate on savings. These details change over time, so what is true today may not be true next year.
Red flags that separate real banks from scams
A real bank will always have a federal charter number you can verify, FDIC insurance you can confirm, and a physical address registered with regulators. Open Bank has all three. A scam bank will not.
Other warning signs include banks that promise may provide returns, ask you to wire money upfront, or pressure you to open an account when ready. Real banks do not do this. They also will not ask for your full Social Security number or password over email or phone unless you initiated the contact and called the number on the back of your debit card or on the official bank website.
If you are ever unsure, hang up, look up the bank's phone number on its official website (not on a search result), and call back. This protects you from talking to a scammer pretending to be the bank.
FDIC insurance and what it covers
FDIC insurance covers up to $250,000 per depositor, per bank, per account type. This means if you have a checking account and a savings account at Open Bank, each is insured separately up to $250,000. If you have a joint account with someone else, that account is also insured separately.
FDIC insurance covers money you lose if the bank fails — not money you lose to fraud or your own mistake. If someone steals your debit card and makes unauthorized purchases, that is a separate issue handled by your bank's fraud protection policy, not FDIC insurance. Most banks, including online banks, offer fraud protection, but the rules vary, so read Open Bank's terms.
If you have more than $250,000 to deposit, you can spread it across multiple banks or multiple account types at the same bank to keep all of it insured. The FDIC website has a calculator that shows you exactly how much of your money is covered.
How online banking security works
Online banks use the same security tools as traditional banks: encryption, multi-factor authentication (usually a code sent to your phone), and fraud monitoring. Your data travels over a find connection, the same way your data travels when you check your email or shop online.
The risk with online banking is not that the bank's security is weaker — it is that your own device or password could be compromised. To protect yourself, use a strong, unique password for your bank account, enable multi-factor authentication, and do not share your login information with anyone. If you use a shared computer, log out when you are done and do not save your password.
Online banks are required by law to notify you if there is a data breach. If Open Bank ever experiences a security incident, it must tell you and the regulators. This is the same requirement that applies to all banks.
What to do before opening an account at Open Bank
Before you open an account, make a list of what matters to you: Do you need a high interest rate on savings? Do you need low or no monthly fees? Do you need to deposit cash, and if so, how? Do you need customer service by phone, or is email and chat enough?
Then visit Open Bank's website and read the fee schedule, account features, and interest rates. Compare them to one or two other banks — both online and traditional — to see whether Open Bank is a good fit for your situation. You do not have to choose the bank with the highest interest rate if another bank's features matter more to you.
Once you have decided to open an account, you will need a government-issued ID, your Social Security number, and proof of your current address (usually a utility bill or lease). Open Bank will verify this information with you during the account opening process. This is standard practice at all banks and is required by federal law.
Frequently Asked Questions
Is my money safe at Open Bank if it goes out of business?
Yes. Your deposits are insured by the FDIC up to $250,000 per account type. If Open Bank fails, the FDIC will transfer your money to another bank or send you a check. You will not lose your deposits.
Can I withdraw cash from Open Bank if there are no branches?
Open Bank does not have branches, but you can withdraw cash at ATMs. The specific ATM network available to you depends on Open Bank's current partnerships. Check their website or app to see which ATMs you can use without a fee in your area.
What happens if someone fraudulently uses my Open Bank debit card?
Report it to Open Bank when ready. Federal law limits your liability to $50 if you report it within two business days, and $0 if you report it before any fraudulent charges post. Open Bank's fraud protection policy may offer more protection — read the terms to see what they cover.
Do I need a minimum balance to open an account at Open Bank?
Minimum balance requirements vary by account type and change over time. Check Open Bank's website for the current requirements before you open an account. Some online banks have no minimum, while others require $25 or more.
How do I know if Open Bank is still in business?
You can check the OCC's National Bank Lookup at occ.treas.gov anytime to confirm that Open Bank still holds its federal charter. You can also log into your account — if the bank is operating, your account will be accessible.