Online banks let you open an account from your computer or phone, usually in 10 to 20 minutes
You can open a bank account online at three types of institutions: online-only banks (no physical branches), traditional banks that offer online accounts, and credit unions with online options. The process is nearly identical across all three. You provide your name, address, Social Security number, and initial deposit information, then sign documents electronically. Most accounts are active within one business day.
The main difference between these three is what happens when you need to deposit cash or speak to someone in person. Online-only banks have no branches, so you deposit checks by photograph or use ATMs in their network. Traditional banks let you walk into a branch if you need to. Credit unions typically require membership but offer the lowest fees and best rates for savers.
Key Takeaways
- Online-only banks, traditional banks with online options, and credit unions all let you open accounts from home, usually in under 20 minutes.
- You will need a government-issued ID, your Social Security number, and a way to make your first deposit (debit card, bank transfer, or check).
- Most online accounts are ready to use within one business day, though some institutions hold deposits for three to five days before you can withdraw.
- Online-only banks have no branches, so you deposit checks by photo and withdraw cash at partner ATMs or any ATM for a fee.
- Credit unions often have lower fees and better savings rates but may require you to join the credit union first, which can take an extra day.
Online-only banks: fastest to open, no branches to visit
Online-only banks exist entirely on the internet. They have no physical locations. Examples include Ally, Charles Schwab Bank, Discover Bank, and Marcus by Goldman Sachs. Because they have no branch network to maintain, they typically charge no monthly fees and pay higher interest on savings accounts.
Opening takes 10 to 15 minutes. You enter your personal information, verify your identity (usually by answering questions about your credit history), and link a funding source—a debit card, another bank account, or a check you photograph and upload. Your account opens when ready, but you cannot withdraw money until your deposit clears, which takes one to three business days depending on the funding method.
The trade-off is that you cannot deposit cash in person. You deposit checks by taking a photo through the bank's app. If you need cash, you withdraw from ATMs in the bank's network (often 30,000 or more ATMs nationwide) or any ATM for a fee of $2 to $3 per transaction. This works well if you rarely use cash or live near a partner ATM.
Traditional banks with online accounts: branch access plus online convenience
Traditional banks—Chase, Bank of America, Wells Fargo, Citibank, and regional banks in your area—all let you open accounts online. The process is identical to opening at a branch: you provide your identity, Social Security number, and initial deposit. Most accounts are ready within one business day.
The advantage is that you can walk into a branch to deposit cash, speak to a person, or handle problems face-to-face. The disadvantage is that traditional banks usually charge monthly fees ($12 to $15 is common) unless you meet a minimum balance or set up direct deposit. Interest rates on savings accounts are typically lower than online-only banks.
Opening online at a traditional bank takes 15 to 20 minutes. You will be asked to verify your identity, often by uploading a photo of your driver's license. Some banks require you to visit a branch in person within 30 days to complete the account, though this is becoming less common. Check the bank's website before you start to see whether in-person verification is required.
Credit unions: membership first, then account opening
Credit unions are member-owned financial institutions. To open an account, you must first become a member. Membership usually requires living or working in a specific area, belonging to an employer or organization, or having a family member who is already a member. Some credit unions let you join online; others require a visit to a branch.
Once you are a member, opening an account online takes 10 to 15 minutes and follows the same steps as other banks. Credit unions typically charge no monthly fees and pay higher interest on savings than traditional banks. Their rates fall between online-only banks and traditional banks.
The membership requirement adds one to three days to the process, depending on whether you can join online or need to visit a branch. Check whether you are already may be able to access to join a credit union through your employer, school, or family. If not, some credit unions let anyone join by making a small donation to a nonprofit partner.
What you need to open an account online
Every bank and credit union requires the same core documents and information. Have these ready before you start:
- A government-issued photo ID (driver's license, passport, or state ID card)
- Your Social Security number
- Your current address
- A way to fund the account: a debit card, another bank account number and routing number, or a check to photograph
Some banks ask for your phone number and email address. A few ask about your employment or income, though this is optional. If you are opening a business account rather than a personal account, you will need an Employer Identification Number (EIN) and may need to upload business documents like articles of incorporation.
The identity verification step usually happens automatically. The bank asks questions only you would know the answers to—details from your credit history, past addresses, or previous accounts. If you have no credit history, some banks let you verify by uploading a photo of your ID instead. This takes an extra day or two.
How long it takes from start to using your account
| Stage | Timeline | What happens |
|---|---|---|
| process | 10–20 minutes | You enter information and verify your identity online. |
| Account opens | Same day or next business day | You receive account number and routing number. You can set up direct deposit or bill pay when ready. |
| Deposit clears | 1–5 business days | Money from your debit card or linked account arrives. Check deposits take longer (3–5 days). |
| Account fully active | 1–5 business days after deposit | You can withdraw money and use debit card (if ordered). |
The longest part is waiting for your deposit to clear. If you fund the account with a debit card, it usually clears within one business day. If you transfer from another bank account, it takes one to three business days. If you deposit a check by photograph, expect three to five business days.
You can use your account for direct deposit and bill pay as soon as it opens, even if your initial deposit has not cleared. This is useful if your paycheck is about to arrive—you can set up direct deposit when ready and the money will land in your new account.
Comparing the three options side by side
| Type | Monthly fee | Savings rate | Cash deposits | Time to open |
|---|---|---|---|---|
| Online-only bank | Usually $0 | Highest (4–5% APY) | Photo only; no cash deposits | 10–15 minutes |
| Traditional bank | $12–$15 (waivable) | Low (0.01–0.5% APY) | In-branch or ATM | 15–20 minutes |
| Credit union | Usually $0 | Medium (2–4% APY) | In-branch or ATM | 1–3 days (membership first) |
Interest rates and fees vary by institution and change over time. The rates shown here are typical as of now but are not may provide. Check the specific bank or credit union's website for current rates before you open an account.
The choice between these three depends on what matters most to you. If you want the highest savings rate and lowest fees and rarely use cash, an online-only bank is fastest. If you need to deposit cash regularly or want to speak to someone in person, a traditional bank or credit union is worth the extra fees or membership step. If you want no fees and moderate rates, a credit union is often the best middle ground.
Frequently Asked Questions
Can I open an account if I do not have a Social Security number?
Most banks require a Social Security number or Individual Taxpayer Identification Number (ITIN). Some banks let you open an account with an ITIN if you are a non-citizen. A few banks have special programs for undocumented immigrants, though these are less common. Call the bank directly to ask whether they accept ITINs before you start.
What if the bank rejects my identity verification?
If the automated questions do not work, the bank will ask you to upload a photo of your ID. If that fails, you may need to visit a branch in person or call customer service to verify by phone. This adds one to three days but is usually successful. Some banks will not open accounts for people with no credit history; in that case, try a credit union or online-only bank that has a more flexible process.
Can I open multiple accounts at the same bank online?
Yes. Once your first account is open, you can open additional accounts (checking, savings, money market) online in minutes. You do not need to reverify your identity. Some banks let you open multiple accounts during the initial process; others require you to wait until the first account is active.
Do I have to make a large deposit to open an account?
No. Most banks and credit unions let you open an account with $0 to $25. Some require a minimum deposit of $100 to $500. Check the bank's website for the minimum before you start. The deposit does not have to come from your own money—it can be a transfer from someone else's account.
What happens if I close my account within a few days of opening it?
You can close an account anytime without penalty. Some banks ask why you are closing it, but they cannot charge you a fee for closing early. If you deposited money, you will receive a refund by check or transfer to the account you funded it from, which takes three to five business days.