What you need before you start
Opening an online bank account takes 10 to 20 minutes and requires a government-issued ID, a Social Security number, and a way to fund the account—usually a debit card or another bank account. Most online banks let you complete the entire process on your phone or computer without visiting a branch. The account is typically live within one to three business days, though some banks offer same-day access to a temporary debit card number.
Online banks operate the same way as traditional banks: they hold your money, process transfers, and issue debit cards. The main difference is they have no physical branches, so all transactions happen through their app or website. This means lower overhead costs, which is why online banks often offer higher interest rates on savings accounts and checking accounts with no monthly fees.
Key Takeaways
- You will need a valid government ID, Social Security number, and a funding source (debit card or existing bank account) to open an online bank account.
- The application process takes 10 to 20 minutes and happens entirely online; approval usually comes within one to three business days.
- Online banks have no physical branches, so you cannot deposit cash in person—you will need to use mobile check deposit, transfers from another account, or ATM networks.
- Most online banks charge no monthly maintenance fees and offer higher interest rates than traditional banks, but verify ATM access and customer service options before you choose.
Step 1: Choose an online bank and visit their website or app
Start by comparing online banks based on what matters to you: interest rates on savings, monthly fees (most charge none), ATM access, and customer service availability. Common online banks include Ally Bank, Charles Schwab Bank, Discover Bank, and Marcus by Goldman Sachs. Each has different features—some offer high-yield savings accounts, others focus on checking accounts with no overdraft fees, and some provide access to large ATM networks.
Visit the bank's official website or download their app directly from your phone's app store. Do not click links from email or search ads, as scammers sometimes create fake bank sites. Once you are on the real site, look for a button that says "Open an Account" or "Sign Up"—this starts the application.
Step 2: Provide your personal information
The bank will ask for your full name, date of birth, address, phone number, and email address. They will also ask for your Social Security number, which they use to check your credit and verify your identity. Have your government-issued ID (driver's license, passport, or state ID) ready—you may need to photograph it or answer security questions based on information from it.
Answer all questions accurately. Banks verify this information against government records and credit bureaus. If your information does not match, the application will be delayed or denied. If you have moved recently, use your current address, not an old one.
Step 3: Choose your account type and initial deposit method
Most online banks offer checking accounts, savings accounts, or both. Decide which you need: a checking account is for everyday spending and bill payments, while a savings account is for money you want to keep separate and earn interest on. Some banks let you open both at the same time.
Next, choose how to fund the account. You can link a debit card, transfer money from another bank account via ACH (Automated Clearing House), or wire money. ACH transfers are free but take one to three business days. Wire transfers are faster (same day or next day) but usually cost $15 to $25. You do not need to deposit money immediately—many banks let you open the account and fund it later.
Step 4: Review and agree to the account terms
The bank will show you the account agreement, fee schedule, and privacy policy. Read the fee section carefully: look for monthly maintenance fees (most online banks charge none), overdraft fees, and ATM fees. Check whether the bank reimburses out-of-network ATM fees or offers surcharge-free ATM access through a network like Allpoint or MoneyPass.
You will also see disclosures about how the bank handles your data and what happens if you dispute a transaction. Once you understand the terms, check the box to agree and proceed. You cannot open the account without accepting these terms.
Step 5: Verify your identity
The bank will ask you to verify who you are. This usually happens in one of three ways: they may ask security questions based on your credit history (like "Which of these addresses have you lived at?"), they may send a code to your phone or email that you enter into the app, or they may ask you to photograph your ID. Some banks use all three methods.
Complete whatever verification the bank requests. This step protects your account from fraud and is required by federal law. If you cannot verify your identity online, the bank may ask you to call a representative or visit a partner location to complete the process in person.
Step 6: Wait for approval and set up your debit card
Most online banks approve accounts within one to three business days. You will receive an email confirming your account is open. Log into your new account and check the dashboard—you should see your account number and routing number, which you need to set up direct deposit or receive wire transfers.
If you requested a debit card, it will arrive by mail in 7 to 10 business days. Some banks offer a temporary card number you can use immediately in the app for online purchases. Once your physical card arrives, activate it in the app before using it. Set up your PIN, enable fraud alerts if the bank offers them, and add the card to your phone's digital wallet if you want to pay with your phone.
How to deposit money into your new account
Online banks cannot accept cash deposits because they have no branches. Instead, use one of these methods: transfer money from another bank account (free, takes one to three business days), deposit a check using mobile check deposit (photograph the front and back in the app, takes one to three business days), or wire money from another bank (costs $15 to $25, arrives same day or next day).
Some online banks partner with retail locations like CVS or Walgreens where you can deposit cash for a fee, usually $3 to $5. Check your bank's website to see if this option is available. If you receive regular paychecks, set up direct deposit using your new account number and routing number—this is free and deposits funds on payday.
Frequently Asked Questions
How long does it take to open an online bank account?
The application itself takes 10 to 20 minutes. Approval usually comes within one to three business days, and you can often start using the account immediately through the app. Your physical debit card arrives by mail in 7 to 10 business days, but many banks provide a temporary card number you can use right away.
What if I do not have a government ID?
You will need some form of government-issued ID to open an account—a driver's license, passport, or state ID. If you do not have one, contact the bank directly to ask about alternatives. Some banks may require you to visit a partner location in person or provide additional documentation.
Can I open an online bank account if I have bad credit?
Most online banks do not deny accounts based on credit score. They check your credit history to verify your identity and to see if you have unpaid debts to other banks, but a low credit score usually does not stop you. If you have been denied before, call the bank's customer service line to ask why and what you can do.
What happens if I need to deposit cash?
Online banks cannot accept cash directly because they have no branches. You can transfer cash to your account by depositing it at a partner retail location (if available) for a small fee, or by withdrawing cash from an ATM and transferring it from another bank account. Some people keep a small account at a traditional bank for cash deposits.
Is my money safe in an online bank?
Yes, if the bank is FDIC-insured. Check the bank's website for the FDIC logo and confirmation that deposits are insured up to $250,000 per account holder. FDIC insurance protects your money if the bank fails. Online banks are regulated the same way as traditional banks and use the same security measures to protect against fraud.