Most banks do not let you open a security account entirely online

A security bank account (also called a secured savings account or secured deposit account) requires you to put cash into the bank as collateral before you can use the account. Because the bank is holding your money as security, the process involves more verification than a standard account. Most major banks require you to complete at least part of the setup in person or over the phone with a representative who can confirm your identity and take your deposit.

Some online-only banks and credit unions do offer security accounts with a fully online process, but they are the exception. If you want to open one online, you will need to search for banks that explicitly state they accept remote account opening for secured products. The rest of this guide covers what happens during the process, what you need, and which banks actually allow it.

Key Takeaways

  • Most traditional banks require you to visit a branch or speak to a representative by phone to open a security account, even if they offer online banking afterward.
  • Online-only banks and some credit unions do allow fully remote security account opening, but you must confirm this before you start the process.
  • You will need to provide government-issued ID, proof of address, and Social Security number; the bank will run a background check through ChexSystems or Early Warning Services.
  • Your initial deposit becomes your collateral and determines your credit limit; most banks require between $300 and $2,500.
  • If a bank says you can open online but then asks you to mail documents or visit a branch, that is not a fully online process.

What banks actually allow fully online security account opening

Chime, LendingClub, and Varo are three online banks that have offered security accounts with remote opening, though product availability changes. Credit unions that participate in the CO-OP network or Allpoint network sometimes allow online security account opening if they use digital identity verification. Before you start any application, call the bank directly or check their website for the exact phrase "open a security account online" or "remote account opening for secured accounts"—do not assume based on their general online banking.

Traditional banks with branches—Chase, Bank of America, Wells Fargo, Citibank—typically require an in-person visit or a phone call with a representative to complete a security account. Some will let you start the application online but will stop you partway through and ask you to finish at a branch or by mailing documents. This is not the same as opening online.

If you cannot find a bank that explicitly states it allows fully remote security account opening, your next option is to call your local credit union and ask whether they offer security accounts and whether they can open one over the phone or online. Credit unions are more likely than national banks to have flexibility here.

What you need to have ready before you start

The bank will ask for your full legal name, date of birth, Social Security number, and current address. You will need a government-issued photo ID—a driver's license, passport, or state ID card. Some banks will ask you to upload a photo of both sides of your ID; others will verify it through a video call where you hold it up to the camera.

You will also need proof of your current address. This can be a recent utility bill, lease agreement, mortgage statement, or bank statement in your name. The document usually needs to be dated within the last 60 days. If you do not have one, some banks will accept a government letter (tax return, benefits statement) or allow you to verify your address verbally during a phone call.

Finally, you need the money for your initial deposit. This is the amount that becomes your collateral. Most banks require between $300 and $2,500, though some go as low as $100 or as high as $5,000. The bank will tell you the minimum and maximum before you submit your application. You will transfer this money from another bank account or, in rare cases, mail a check.

How the identity verification process works online

When you apply online, the bank will run your information through ChexSystems or Early Warning Services—these are background check systems that banks use to verify you are not on a list of people who have committed banking fraud or have unpaid debts to other banks. This check happens automatically and takes a few minutes. If you pass, the bank moves forward. If you do not, the bank will tell you why and may deny your application.

Some banks also use video verification, where you start a video call with a representative who watches you hold up your ID and answer questions about your identity. This usually takes 5 to 10 minutes. Other banks use a photo upload method where you take pictures of your ID and send them through the app or website. A few banks use a third-party service like Socure or IDology to verify your identity without a live person.

If the bank cannot verify your identity online—for example, if your ID is expired or your address does not match their records—they will ask you to complete verification in person at a branch or by mailing documents. At that point, the process is no longer fully online.

What happens after you are approved

Once the bank approves your application and you transfer your deposit, your security account is open. The money you deposited sits in the bank's account as collateral. You can use the account to receive direct deposits, pay bills, and make transfers, just like a regular checking or savings account. The difference is that your spending or credit limit is usually tied to your deposit amount—if you deposited $500, you might have a $500 limit on debit card purchases or overdrafts.

Some security accounts come with a debit card; others do not. Some charge monthly fees ($5 to $15); others are free. Read the fee schedule before you complete your application. The bank will send you a debit card by mail if one is included, which usually arrives within 5 to 10 business days.

Your security account will report to the three credit bureaus (Equifax, Experian, TransUnion) if you use it responsibly. This means on-time deposits and no overdrafts will build your credit history. After 6 to 12 months of good activity, you may be able to convert the account to a regular account and get your deposit back, though this depends on the bank's policy.

Red flags that signal the process is not actually online

If the bank asks you to mail original documents, visit a branch to complete the application, or wait for a representative to call you before you can finish, the account opening is not fully online. Some banks advertise "online banking" but require you to open the account in person first. That is different from opening the account online.

If the bank's website does not clearly state that security accounts can be opened remotely, do not assume they can be. Call and ask directly. If the representative hesitates or says "usually" or "sometimes," that means the process is not may provide to be online for you.

Another red flag: if the bank asks you to pay a fee upfront to open the account, or if they ask for your deposit before you have been approved. Legitimate banks do not charge to open a security account, and they do not take your money until after identity verification is complete.

Alternatives if you cannot open a security account online

If no online bank works for you, you have two other paths. First, visit a local branch of a bank or credit union that offers security accounts. Bring your ID, proof of address, and your deposit. The process takes 15 to 30 minutes, and your account is open the same day. Second, open a regular checking or savings account online (which most banks allow), then call the bank and ask whether you can convert it to a security account later if you need to build credit.

Some people also open a security account at a credit union instead of a bank. Credit unions often have lower fees and more flexible policies around identity verification. You can find credit unions near you through the CO-OP locator or by searching "credit union near me."

Frequently Asked Questions

Do I have to keep my deposit in the account forever?

No. After you have used the account responsibly for 6 to 12 months (depending on the bank), you can usually request to convert it to a regular account and withdraw your deposit. Some banks do this automatically; others require you to ask. Check the bank's policy before you open the account.

What if the bank denies my application?

Banks usually deny security account applications because of ChexSystems or Early Warning Services records—typically unpaid overdrafts or fraud flags at another bank. You have the right to see your ChexSystems report for free. Visit chexsystems.com or call 1-800-428-9623 to request it. If there is an error, you can dispute it.

Can I open a security account if I do not have a Social Security number?

Most banks require a Social Security number or ITIN (Individual Taxpayer Identification Number). Some credit unions will open accounts for people without an SSN if you provide a passport or other government ID. Call your local credit union to ask.

How long does it take to open a security account online?

The application itself takes 10 to 20 minutes. Identity verification can happen instantly (photo upload) or take a few minutes (video call). Once approved, your account is active immediately, though your debit card arrives by mail in 5 to 10 business days.

Will opening a security account hurt my credit score?

Opening the account itself does not hurt your score. The bank may do a hard inquiry, which can lower your score by a few points temporarily. Using the account responsibly—making deposits on time and avoiding overdrafts—will help build your credit over time.