You can open most savings accounts entirely online in 10 to 20 minutes

Online savings accounts work the same way as accounts you open in a branch—the bank holds your money, pays you interest, and lets you withdraw it. The difference is that you never visit a physical location. You fill out forms on the bank's website, verify your identity through documents or a video call, and link a bank account so the bank can confirm you are who you say you are. Most banks complete the whole process the same day or within one business day.

The speed and simplicity depend on which bank you choose and what documents you have ready. Some banks ask for a driver's license and a Social Security number. Others require a video call with an employee. A few still mail you a debit card or require a minimum deposit before the account is active. Knowing what each bank requires before you start saves time and frustration.

Key Takeaways

  • You will need a valid government ID (driver's license, passport, or state ID), your Social Security number, and proof of your current address to open an account online.
  • Most banks verify your identity by checking your ID against public records or by asking you to record a short video with your ID held up to the camera.
  • You must link an existing bank account so the bank can confirm your identity through small test deposits or by checking your account history.
  • Some banks let you start using the account when ready; others hold your funds until your identity is fully verified, which usually takes one to three business days.
  • Interest rates, monthly fees, and minimum balance requirements vary widely between banks, so comparing a few options before you open an account takes 15 minutes and can save you money.

What documents and information you need before you start

Gather these items before you visit the bank's website. Having them ready means you will not have to stop halfway through and come back later.

A valid government-issued ID is required by every bank. This can be a driver's license, passport, state ID card, or military ID. The ID must not be expired. If you do not have one, you will need to get one before opening an account online—some banks offer alternatives like a video call with a notary, but most do not.

Your Social Security number is standard. Banks use it to check your credit history and to report interest you earn to the IRS. If you do not have a Social Security number, some banks will not open an account for you online, though a few offer alternatives for non-citizens with an Individual Taxpayer Identification Number (ITIN).

Proof of your current address is usually required. A utility bill, lease, mortgage statement, or government mail dated within the last 60 to 90 days works. If your ID has your current address on it, many banks skip this step. If you moved recently and your ID is outdated, bring a piece of mail to the address on your ID showing you lived there, plus a current utility bill or lease.

An existing bank account at another bank is almost always required. The new bank uses it to verify your identity by sending two small deposits (usually under $1 each) and asking you to tell them the amounts. Some banks skip this and instead check your account history electronically. Either way, you need access to another account you can log into during the process.

The step-by-step process most banks use

The exact order varies slightly between banks, but the core steps are the same. Most banks guide you through them on their website without requiring you to call or visit.

Step 1: Start on the bank's website and choose "Open an Account" or "New Customer." You will land on a page asking what type of account you want. Select "Savings Account." Some banks ask you to choose a specific savings product (like "High-Yield Savings" or "Money Market Account") at this stage. If you are unsure, the basic savings account is the right choice.

Step 2: Enter your personal information. Name, date of birth, Social Security number, email address, and phone number. The bank uses this to search public records and verify you are a real person. If the information does not match what is on file (for example, if you go by a nickname but your ID shows your legal name), the bank may ask you to clarify.

Step 3: Verify your identity with your ID. Most banks ask you to upload a photo of your driver's license or passport—both the front and back. Some use software that reads the ID automatically. Others ask you to take a short video holding your ID up to your camera so an employee can see it is really you. A few still mail you a code or ask you to call and verify by phone. This step usually takes 5 to 10 minutes.

Step 4: Verify your address. Upload a utility bill, lease, or recent government mail. The bank checks that the address matches what you entered. If your ID shows your current address, you can usually skip this.

Step 5: Link your existing bank account. Enter the routing number and account number from another bank account you own. The bank will either send two small test deposits to that account (which you confirm by logging in and telling the bank the amounts) or check your account electronically. This step confirms you control that account and that you are not using a fake identity.

Step 6: Choose your account settings. Decide whether you want online statements, paper statements, or both. Choose a username and password for logging in. Some banks ask you to set up a PIN or security questions at this stage.

Step 7: Review and sign. Read the account agreement and disclosures. Click "I agree" or "Sign" to confirm. Some banks ask you to sign electronically using your mouse or finger on a touchscreen. Others email you a document to sign and return.

Step 8: Wait for confirmation. The bank sends you an email confirming the account is open. Some banks let you start using the account when ready. Others hold your funds for one to three business days while they finish verifying your identity. The email will tell you when you can deposit money.

How long it takes and when you can start using the account

The online form itself takes 10 to 20 minutes. Identity verification—the part that takes the longest—happens in the background while you wait.

If the bank verifies your identity when ready (which happens when your information matches public records perfectly), your account may be active within hours. You can log in, see your account number, and set up transfers or direct deposit the same day.

If the bank needs to review your ID manually or wait for test deposits to clear, it usually takes one to three business days. During this time, your account exists but you cannot deposit or withdraw money. The bank will email you when the hold is lifted.

A few banks require a minimum deposit before the account is active—usually $25 to $100. They will tell you this before you finish opening the account. If you do not have that amount available, you can either wait until you do or choose a different bank.

Once your account is active, you can deposit money by transferring it from another bank account (which takes one to three business days), setting up direct deposit from your employer (which takes one to two pay periods), or mailing a check to the bank's address (which takes five to seven business days).

Comparing banks before you open: what to look at

Interest rates, fees, and minimum balances vary widely. Spending 15 minutes comparing three or four banks can mean the difference between earning $5 a year and earning $50 a year on the same balance.

Interest rate (APY). This is the percentage the bank pays you on your balance each year. Rates change frequently and vary by bank. Online banks usually pay higher rates than traditional banks because they have lower overhead. As of early 2024, online savings accounts pay between 4% and 5.35% APY, while traditional banks often pay 0.01% to 0.05%. The difference matters: on a $10,000 balance, 4.5% APY earns you $450 a year, while 0.05% earns you $5.

Monthly fees. Some banks charge a monthly maintenance fee ($5 to $15) unless you keep a minimum balance or set up direct deposit. Others charge no monthly fee at all. If you are starting with a small balance, a no-fee account is usually the better choice.

Minimum balance requirements. Some banks require you to keep a certain amount in the account at all times (often $100 to $500). If your balance drops below that, they charge a fee or close the account. Other banks have no minimum. If you are saving slowly, a no-minimum account is easier to manage.

Withdrawal limits. Federal rules no longer cap how many times you can withdraw per month, but some banks still limit free withdrawals or charge a fee after a certain number. If you plan to withdraw money frequently, check the bank's policy.

FDIC insurance. All banks are required to carry FDIC insurance, which protects your money up to $250,000 if the bank fails. This is not something you choose—it is automatic. But it is worth confirming the bank is FDIC-insured before you open an account. The bank's website will say so clearly.

What to do if your process is denied or delayed

Most online applications are approved within hours or one business day. If yours is not, the bank will email you to explain why.

The most common reasons for delay or denial are: your ID does not match your personal information (for example, you changed your name and updated your ID but the bank's records still show your old name); your address cannot be verified; the bank cannot confirm your identity through public records; or you have a history of fraud or unpaid debts that shows up in a background check.

If your process is delayed, the bank will usually ask you to provide additional documents—a second form of ID, a notarized letter, or a utility bill from a different company. Respond as quickly as you can. Most banks will approve you once they receive what they need.

If your process is denied, ask the bank why in writing. Some banks will reconsider if you provide more information. If one bank denies you, try another. Different banks use different verification methods and background check services, so a bank that denies you might be stricter or use outdated information. Online banks and credit unions are sometimes more flexible than large traditional banks.

If you have been denied because of fraud or unpaid debts, those issues will follow you to other banks too. In that case, focus on resolving the underlying problem—paying off the debt or clearing up the fraud—before you try again.

Frequently Asked Questions

Do I need a minimum deposit to open an account online?

Most banks do not require a deposit to open the account itself. However, some require a minimum deposit (usually $25 to $100) before you can start using it. The bank will tell you this before you finish the process. If you do not have that amount, you can choose a different bank or wait until you do.

What if I do not have a government ID?

You cannot open a savings account online without a government-issued ID. You will need to get one first—a driver's license, state ID, or passport. Some banks offer alternatives like opening an account in person at a branch or with a notary, but online-only banks do not. If you cannot get an ID, a credit union or community bank may have other options.

Can I open an account if I have bad credit?

Yes. Banks do not check your credit score to open a savings account. They may check your banking history to see if you have unpaid fees or fraud on record, but a low credit score will not stop you. If you are denied, it is for a different reason—usually identity verification or fraud history.

How long does it take to receive my debit card?

Many online banks do not issue a debit card for savings accounts, since you are not supposed to use them for everyday spending. If the bank does issue one, it usually arrives within 7 to 10 business days. You can withdraw money before the card arrives by transferring funds to another account or visiting an ATM if the bank is part of an ATM network.

Can I open multiple savings accounts at the same bank?

Yes. Most banks let you open as many savings accounts as you want. Some people open separate accounts for different goals—one for an emergency fund, one for a vacation, one for a down payment. Each account earns interest separately, and you can transfer money between them when ready online.