Online banks let you open an account in minutes without visiting a branch
You can open a bank account entirely online through a web browser or mobile app. Most online banks have no minimum deposit requirement, no monthly fees, and no branch network — they operate only through their website and phone support. The process typically takes 10 to 20 minutes and requires proof of identity, a Social Security number, and an initial deposit (often $0 to $25).
Online banks differ from traditional banks in speed and cost, not in safety. Your deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account type, the same as money held at a brick-and-mortar bank. The trade-off is that you cannot deposit cash in person or speak to someone face-to-face — everything happens through their website, app, or phone.
Key Takeaways
- Online banks complete account setup in 10 to 20 minutes using your phone, computer, and a government ID.
- FDIC insurance protects your money up to $250,000, the same as traditional banks, even though you never visit a physical location.
- Most online banks charge no monthly fees and pay higher interest on savings accounts than traditional banks do.
- You will need a way to deposit checks and cash — many online banks offer mobile check deposit, but cash deposits require a partner ATM network or a transfer from another account.
What you need before you start
Gather these items before opening an account: a government-issued photo ID (driver's license, passport, or state ID), your Social Security number, your current address, and an email address. Have your phone or computer ready because most banks verify your identity by asking security questions or sending a code to your phone during the signup process.
You will also need a way to make your first deposit. Many online banks let you transfer money from an existing bank account or credit card. Some accept checks deposited by phone camera. A few require you to mail a check or wire money from another bank. Check the bank's deposit methods before you start — if you have no other account to transfer from and cannot mail a check, some banks may not work for you.
Step-by-step: opening an account online
Visit the bank's website or download their mobile app. Click the button to open a new account (usually labeled "Open an Account" or "get your free guide"). Enter your name, address, email, and phone number. The bank will ask for your Social Security number and date of birth.
Next comes identity verification. The bank will either ask security questions based on your credit history, ask you to photograph your ID, or both. This step usually takes 2 to 5 minutes. Once verified, you will choose your account type (checking, savings, or both), set a PIN or password, and review the account terms.
Finally, make your first deposit. If you are transferring from another bank, enter that account's routing and account numbers. If you are depositing a check by phone, photograph the front and back. The bank will tell you when the money will appear in your new account — this ranges from same-day to 3 to 5 business days depending on the deposit method.
Online banks with no monthly fees and low or no minimum deposits
| Bank | Checking Account Fee | Savings Account Fee | Minimum to Open | Check Deposit Method |
|---|---|---|---|---|
| Ally Bank | None | None | $0 | Mobile app |
| Charles Schwab Bank | None | None | $0 | Mobile app |
| Discover Bank | None | None | $0 | Mobile app |
| Marcus by Goldman Sachs | N/A (savings only) | None | $0 | N/A |
| Vanguard Bank | None | None | $0 | Mobile app |
This table shows common options, but fees and features change. Visit each bank's website to confirm current terms before opening an account.
How to deposit checks and cash at an online bank
Mobile check deposit is the most common method. Open the bank's app, select "Deposit a Check," photograph the front and back of the check, and submit. The bank usually credits the money within 1 to 3 business days. This works for personal checks, business checks, and government checks.
Cash deposits are harder. Most online banks do not accept cash directly. Your options are: transfer cash from another bank account you own, use a partner ATM network (some online banks partner with Allpoint or MoneyPass ATMs, which let you deposit cash), or visit a physical branch of a partner bank if the online bank has one. Ask the bank about cash deposit before you open an account if you receive cash regularly.
Wire transfers and ACH transfers from another bank account are instant or next-day, but they cost money if the sending bank charges a wire fee. ACH transfers are usually free and take 1 to 3 business days.
Differences between online banks and traditional banks
Online banks have lower overhead because they do not maintain physical branches, so they pass savings to customers through higher interest rates on savings accounts and no monthly fees. A traditional bank's savings account might pay 0.01% annual interest; an online bank might pay 4% to 5%. That difference compounds over time, especially if you keep a large balance.
The downside is convenience. You cannot walk into a branch to deposit cash, speak to a teller, or get a cashier's check same-day. Customer support is phone or email only. If you need to dispute a transaction or report fraud, resolution takes longer because there is no branch manager to escalate to immediately.
Some people use both: an online bank for savings (because of higher interest) and a traditional bank for checking (because of branch access and cash deposits). This is a common strategy and works well if you have the time to manage two accounts.
What happens after you open your account
Once your account is open and your first deposit clears, you can use your debit card (which arrives by mail in 7 to 10 days), set up direct deposit, and transfer money to other accounts. Most online banks let you link external accounts for transfers, set up bill pay, and create savings goals or sub-accounts.
You will receive statements by email, not by mail. Keep your login credentials secure and enable two-factor authentication if the bank offers it — this adds a second verification step when you log in from a new device, protecting your account from unauthorized access.
Frequently Asked Questions
Is my money safe at an online bank?
Yes. Online banks are FDIC-insured the same way traditional banks are. Your deposits are protected up to $250,000 per account type. The bank's lack of physical branches does not affect insurance coverage. Verify that the bank displays the FDIC logo on its website before you open an account.
How long does it take to get my debit card?
Most online banks mail debit cards within 7 to 10 business days of account opening. Some expedite for a fee (usually $10 to $25 for 2-day delivery). You can often use a temporary virtual card number in the bank's app for online purchases while you wait for the physical card.
Can I deposit cash at an ATM?
Only if your online bank partners with an ATM network like Allpoint or MoneyPass. Not all online banks offer this. Check the bank's website or call before opening an account if you need to deposit cash regularly. Some banks let you deposit cash at partner retail locations like Walmart or CVS.
What if I need to close my account?
Most online banks let you close an account through their website or by calling customer service. Transfer any remaining balance to another account first. The bank will confirm closure by email. There are usually no fees to close an account.
Can I open an account if I have bad credit?
Yes. Online banks do not run a credit check to open a checking or savings account. They may check ChexSystems, a banking history database, but this is different from a credit check. Even if you have been denied a bank account before, you can open an account at most online banks.