Most banks let you open a security account online, but the process differs from a regular checking account
A security account (also called a secured savings or secured deposit account) is a savings account where you deposit money that the bank holds as collateral. You cannot withdraw that money without closing the account or paying a penalty. Banks use it to manage risk when you have no credit history, a damaged credit history, or are new to the country.
You can open one online at most major banks and many credit unions. The application itself takes 10 to 20 minutes. What takes longer is funding the account — you'll need to transfer money from another bank account or send a wire, which can take one to three business days to clear. Some banks require you to visit a branch in person to complete the process, so check before you start.
The security deposit itself is yours. You're not paying a fee; you're setting aside money the bank will hold. Deposit amounts typically range from $500 to $2,500, depending on the bank. Once you've held the account in good standing for 6 to 24 months (varies by bank), you can usually convert it to a regular account and get your deposit back.
Key Takeaways
- Most major banks and credit unions let you open a security account online, but some require a branch visit to complete the process.
- You must deposit money upfront — typically $500 to $2,500 — which the bank holds and you cannot touch until you close the account or convert it.
- Funding the account takes one to three business days after you open it, because money must clear from your existing bank account.
- After 6 to 24 months of on-time payments and no overdrafts, most banks will convert the account to a regular one and return your deposit.
Which banks offer security accounts online
Major national banks that offer online security accounts include Chime, LendingClub, Discover, Capital One 360, and Ally. Credit unions often have them too — check your local credit union's website or call their member services line. Some smaller regional banks offer them; others do not.
Before you start an application, visit the bank's website and search for "secured savings account" or "security deposit account." If you cannot find it listed, call the bank directly. Do not assume it is unavailable just because the website does not mention it prominently — some banks bury the product because it is not their main offering.
Online-only banks (Chime, Ally, Discover) tend to have faster application processes because everything is digital. Banks with physical branches sometimes require you to visit a location to verify your identity or sign documents in person, even if you start the application online.
What you need before you apply online
Have your Social Security number, a government-issued ID (driver's license or passport), your current address, and proof of income ready. Most banks ask for recent pay stubs or tax returns, though some waive this for security accounts since the deposit itself is the collateral.
You will also need access to another bank account to fund the security deposit. The bank will ask for the routing number and account number of the account you want to transfer from. If you do not have another account, some banks let you mail a check or deposit cash at a branch, but this slows the process.
If you are applying as a non-citizen, bring your passport and visa or work authorization documents. Some banks accept ITIN (Individual Taxpayer Identification Number) instead of a Social Security number, but not all — call ahead to confirm.
How the online application actually works
You start on the bank's website and click the link for a security account. The application asks for your name, address, date of birth, Social Security number, and employment information. This part takes 5 to 10 minutes.
Next, the bank runs a background check and verifies your identity. This is instant or takes a few hours. If you pass, you move to the funding step: you enter the routing and account number of the bank account you want to transfer from, and the bank initiates an ACH transfer of your security deposit.
Some banks ask you to verify two small deposits (usually under $1 each) that they send to your other account within 24 hours. You then log back in and confirm the amounts to prove you own that account. This step adds one to two business days.
Once funding clears, your account is active. You can use it immediately to receive direct deposits or transfers, but you cannot withdraw the security deposit without closing the account.
When the bank requires a branch visit
Some banks, especially those with physical locations, require you to visit a branch to complete the security account opening. This usually happens at the final step — after you've passed the online application and identity check, they ask you to come in with your ID to sign documents and confirm the deposit amount in person.
If your bank requires this, you can still start the application online, but you'll need to finish it at a branch. Call ahead to find out which branches handle security accounts and what hours they're open. Bring your ID, proof of address (utility bill or lease), and the confirmation email from your online application.
Some banks let you schedule a branch appointment online; others ask you to walk in during business hours. Check the bank's website or call before you go.
How long it takes from start to finish
If everything is online and you have another bank account to transfer from, the whole process takes three to five business days. The application itself is instant or takes a few hours. The delay is the ACH transfer clearing, which takes one to three business days depending on your bank.
If the bank requires a branch visit, add one to three days for you to schedule and complete that appointment. If you need to mail a check instead of transferring electronically, add five to seven business days for the check to arrive and clear.
Once your account is open and funded, you can use it right away. You do not have to wait for anything else.
What happens after you open the account
Your security deposit sits in the account untouched. The bank pays interest on it — usually 0.01% to 0.5% APY, depending on the bank. This is not much, but it is better than nothing.
You can deposit additional money into the account and withdraw it normally. Only the original security deposit is locked. Some banks let you increase the deposit over time if you want to build credit faster.
After 6 to 24 months of keeping the account open, making no late payments, and staying in good standing, the bank will convert it to a regular savings account and return your deposit. Some banks do this automatically; others send you a letter asking if you want to convert. Check your account statements or call the bank to find out when you're may be able to access.
Frequently Asked Questions
Can I withdraw my security deposit before the account converts?
No. If you withdraw the deposit, the bank will close the account and you lose the credit-building benefit. Some banks charge a penalty for early withdrawal. If you need the money, close the account instead — you'll get the deposit back, but the account history ends.
What if I get denied for a security account online?
Banks usually deny security accounts only if you have unpaid fraud claims, active criminal charges related to banking, or are on ChexSystems (a banking history report). If you're denied, ask the bank why. You can dispute errors on ChexSystems or wait for old fraud claims to age off your record, then reapply.
Does opening a security account hurt my credit score?
The application triggers a hard inquiry, which may lower your score by a few points temporarily. Once the account is open and you use it responsibly, it builds your credit history. The benefit outweighs the initial dip.
Can I open a security account if I don't have a Social Security number?
Some banks accept an ITIN instead. Call the bank before you apply to confirm. You'll need proof of identity (passport or visa) and proof of address. Not all banks offer this option, so you may need to try multiple banks.
What's the difference between a security account and a regular savings account?
A regular savings account has no deposit requirement and no lock-in period. A security account requires an upfront deposit you cannot touch, but it's designed for people building or rebuilding credit. After the conversion period, they function the same way.