How to open a bank account online

People do nearly everything online these days—including big things like applying for jobs, making large purchases and booking travel. But when it comes to the question of how to open a bank account online, is it really as easy as a few clicks, or will you end up having to do it in person?

Good news: Setting up a checking or savings account online can be quite simple and can take just a matter of minutes. We answer your most pressing questions about online banking accounts below, including:

• How do you go about opening a bank account online?

• How long does it take to open a bank account?

• What documents do you need to open a bank account?

Opening a bank account online starts with understanding the two most common options available. Checking accounts are built for everyday spending, offering features like a debit card, bill pay and easy transfers. They work well if you need frequent, flexible access to your money. Savings accounts, on the other hand, are designed for storing funds you want to grow over time, often with interest and tools for setting financial goals.

Let’s take a closer look at your options so you can learn how to open up a bank account that works for you. Please note: Not all of these products are offered at every bank. Be sure to check with your bank to determine availability.

There are several types of bank accounts available to choose from. Different types of bank accounts include savings accounts, checking accounts, certificates of deposit (CDs), money market accounts and individual retirement accounts (IRAs).

Savings accounts can help people who want to save money for short-term and medium-term goals, according to Chanelle Bessette, a personal finance writer. There are many good reasons to open a savings account: They tend to be easily accessible, have a low minimum deposit requirement and can help your money grow through compound interest, which is when you start earning interest on your interest. 

Many high interest rate savings accounts offer a better rate than the national average, according to Bessette. For example, the 360 Performance Savings account from Capital One offers a high rate to help your balance grow.

Checking accounts are designed for everyday transactions and may come with a debit card and checkbook. These accounts usually don’t feature high interest rates, but they’re ideal for daily expenses and paying bills, Bessette says. 

Typically, you can link your checking account with other accounts (like your savings account), making it easy to move your money around. With Capital One, you have the flexibility to easily move your money between your 360 Checking account and your 360 Performance Savings account.

CDs are a type of bank account that commonly offers a higher interest rate than a traditional savings account. You’ll earn a set amount of interest in exchange for securing your funds for a certain term length.

When opening a CD account, keep in mind that if you wish to withdraw funds before the end of the term you’ve agreed to, you will likely face a penalty. Fortunately, you can update your plan for any 360 CD directly in the Capital One Mobile app, giving you full control over whether you want to renew or withdraw your funds. If you haven’t selected a new maturity option by the time your 360 CD account matures, your account will automatically renew to the same CD term at the rate effective on your maturity date.

Money market accounts can offer interest rates close to those of savings accounts, while also offering a debit card and check writing abilities, Bessette says. These types of bank accounts can be a smart choice if you want to grow your money with interest but also need easy access to your cash.

IRAs are retirement savings accounts that offer tax advantages. They are meant to be used for long-term savings and can be used to invest in stocks, bonds, exchange-traded funds and other assets, Bessette says. Depending on what they’re invested in, IRAs can produce strong returns over a long period of time, though they also face risk of losses. IRA CDs and IRA savings accounts are two types of bank accounts you can use in your retirement savings strategy.

What’s the next step when determining how to open up a bank account? You can open your bank account at an in-person branch—just make sure to check their website or call ahead to know what documentation is required. At Capital One Cafés, you can get in-person support for your banking questions from an Ambassador, or open an account and explore other products and services in a no-pressure environment. You might be able to open an online bank account through your bank’s website. This can be a fairly quick process, and most banks provide assistance along the way if you have questions.

Some bank accounts require a minimum deposit upon opening. And if you’re opening a joint account, you may need documentation for both individuals. If you’re co-signing for a minor, you’ll need to sign additional documents with the bank, Bessette says.

One thing to note about how to open up a bank account: In general, banks require you to provide a form of government-issued identification and proof of address, Bessette advises. Here’s a checklist of information and documents your bank may request: 

• Full name and contact information

• Social Security number or taxpayer identification number

• Government-issued ID (your driver’s license, passport or Social Security card)

• Employment information

• Proof of address (such as a utility bill or lease agreement)

Opening a bank account online is usually quick and easy: Most banks guide you through a simple application you can complete from your mobile device or laptop. By providing a few personal details and funding options, you could get your account up and running in minutes.

Here’s the typical process for how to open a bank account online.

Go to the bank’s website. Any time you’re entering personal information online, take extra care. Find the link to “open an account.”

Choose the type of account you want. Most banks let you compare different kinds of accounts to help you decide. Do you want an individual account or do you want to open a joint account online? Do you want things like overdraft protection and the ability to earn interest? From checking and savings accounts to CDs and IRAs, there are many types of accounts you can open online.

Fill out an application. Next, you’ll enter your personal information. You might also set up your username and password and create security questions to help protect your account.

Agree to let the bank collect some information. Sometimes, submitting your application will automatically begin the approval process. But some banks might ask you to review language about their policies and how your data is used first. In some cases, you’ll have to answer a few legal questions and then check a box that lets the bank collect information about you and your credit.

Banks use a few common steps to make sure your information is real and secure when you open an account online. They usually check your personal details, review a government-issued ID, and may use verification questions or photo-ID matching. Some banks also compare your information with trusted databases to confirm everything is in order.

How long does it take to open a bank account? Timing can vary widely. Verification can take anywhere from a few minutes to several business days, depending on the institution and whether extra documents are needed. Having your ID documents ready and entering information carefully can help the process go more smoothly.

Funding a new account online is usually simple, with several methods to choose from. Many people start with a transfer from another bank, using their routing and account numbers to move money electronically. Others may use debit card funding or set up direct deposit.

Initial deposit requirements vary, since each bank sets its own rules. Some accounts have no minimum deposit, including Capital One’s 360 Checking account and 360 Performance Savings account. Funding methods may include bank transfers, direct deposit, mobile check deposits or other available options, depending on the account. 

Once your account is approved, a few simple steps can help you get everything running smoothly. Start by downloading your bank’s mobile app so you can check balances, move money and manage alerts from your phone. Many people also switch to paperless statements to keep documents organized and reduce mail.

If you opened a checking account, you’ll likely receive a debit card that you can activate online or by phone before using it. For savings accounts, setup often focuses on linking external accounts and enabling automatic transfers.

Some mobile banking apps can make it easier to manage your money from anywhere. You may be able to check balances, move money, pay bills and set alerts, all from your phone. Getting started is simple: Download your bank’s app from your device’s app store, sign in with your username and password and set up security features. These may include biometric authentication, which uses your fingerprint or face to verify your identity, and two-factor authentication, which adds a second verification step when you sign in.

Once you’re signed in, you can set up notifications, switch to paperless statements and link external accounts for easy transfers. With these tools in one place, mobile banking can make everyday money management more convenient and organized.

Opening a bank account online can be a simple, convenient process when you have the right information and documents ready. Knowing how to open up a bank account online helps you move through the application with confidence and avoid unnecessary delays.

• The first step to open a bank account online is choosing the account type—checking for everyday spending or savings for long-term goals—and understanding how each one works. 
• “What do you need to open a bank account online?” is an important question to consider when you’re ready to take control of your finances. You’ll likely need basic personal information and identification to complete the application process, such as a government-issued ID, Social Security number and proof of address.
• How long does it take to open a bank account? The online setup is typically quick and straightforward. You’ll complete an application, verify your identity and then fund your account. 

Once you’ve chosen an account and gathered what you need, applying can be quick and straightforward. Whether you’re looking to open a 360 Checking account, 360 Performance Savings account or 360 CD, the online application process with Capital One only takes about 5 minutes to complete.