How to Open a Bank Account Online

Opening a bank account online can take just a few minutes and save you a visit or phone call to a bank branch. You’ll need some personal information, available funds and a way to deposit those funds into the new account, and then you’ll be ready to go.

Here’s a quick guide through the steps.

 

1. Decide on the type of account

Before you start any application, you have two key decisions to make:

• Single or joint account? With a single account, you’re the sole owner of the account. A joint account is one you co-own with another person, generally a family member or significant other.
• Checking, savings or other? Determine this new account’s primary purpose, whether it’s earning interest on your money set aside in a savings account or having unlimited access to your cash with a checking account. If the financial institution you choose offers multiple savings or checking accounts, compare them to see which features and terms work best for you, including interest rates, balance requirements, the various fees that come with the account — and what you need to do to get those fees waived.

Also confirm that the account will be FDIC-insured, which means the Federal Deposit Insurance Corp. protects your money in case the bank fails. Accounts at credit unions have equivalent protection from a separate agency.

>> MORE: NerdWallet’s Best Checking Accounts

2. Review the information you’ll need

Once you know the bank and the type of account you want, gather the following information for the application:

• Social Security number (or, for noncitizens, other identification number)
• Valid driver’s license or other government-issued ID
• Credit card or debit card information or routing and account numbers for another bank account you own. (You can find these on a check or by logging in to your existing account’s online dashboard.) You’ll need this information to make your initial deposit into your new account.

If you aren’t a legal adult, you’ll also need:

• A parent’s information and approval as co-signer

Some financial institutions might also ask for details about your employment, income and accounts you have at other banks. If you don’t have another bank account to transfer money to the new one, you may be able to use a prepaid card.

3. Fill out the application carefully

Using a secure home Internet connection or other trustworthy network, fill out the application with your personal details and check for any misspellings. There are several fields to fill out, including your name, home address, contact information, proof of identification and citizenship.

You’ll also need to confirm that you’ve read the account disclosure agreements. If you sign up for an online-only bank account, you may have to accept a “paperless agreement,” meaning no bank statements or messages will come in the mail.

4. Make the initial deposit

Although you might have the option to use a credit or debit card to send funds to your new account, you may need to make a direct transfer from another bank account. Once you enter in the details for the transfer, choose an amount that satisfies any minimum balance or starting deposit requirement. The funds generally take a few days to process, and then you can start managing your new account.

Knowing the steps to open a bank account online can make the process go smoothly. You can research, compare accounts and open the right account from the convenience of your office or home.

>> MORE: 5 Reasons to Ignore Bank Sign-Up Bonuses

Spencer Tierney is a staff writer at NerdWallet, a personal finance website. Email: spencer@nerdwallet.com. Twitter: @SpencerNerd.

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Image via iStock. 

from NerdWallet Credit Card Blog
http://www.nerdwallet.com/blog/banking/open-bank-account-online/