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How to Open a Bank Account Online

19.04.2021
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4 min.

For opening and replenishing any bank account you need to provide personal papers such as your ID and contact details.

How to Open a Bank Account Online

It does not take long to open a bank account and it is not even necessary to visit a bank office. It is really convenient especially if online opening is the only option available to you.

Important! All best online banks are insured that is why normally their rates are higher than those ones regular banks offer.

What Information Banks Require for Opening a Bank Account Online?

You can open a bank account in any convenient way either online or at the office. Requirements for opening any type of bank account are approximately the same.

You need to provide the following data while opening a bank account on the Internet:

  • passport, driver's license or other nationally recognized documents with photos.
  • Personal data like date of birth, social security number, tax ID number and phone number.
  • Some banks may require initial payments.
  • Other applicants IDs in case a bank account will be managed by more than one person. Banks requires personal data of everyone.
  • People under 18 years old can be co-owners. Legal representatives of a minor need to handle the paperwork for a bank account opening.

You can still open a bank account even if you have any problems with banks, bad credit history or are not a US citizen. You should just learn more about offers of all banks located in your area of residence.

Important! Non-US citizens can open bank accounts as well. For this reason they are recommended to use the Immigrant Guide.

Which Account to Choose: Current or Savings?

Before applying for opening a bank account it is important to decide:

  1. A Single or joint account. A single account means that you are the only account holder. A joint one has several owners, for example, accounts with close friends or family members.
  2. An account type. Determine the exact purpose of your new account. A current account is suitable for covering any recurrent expenses. Please check whether the bank charges additional fees. If you want to save money it is worth checking relevant interest rates as the offer should be beneficial to you.

If the bank offers several types of accounts all them should be compared as it will help to understand which one suits you best.

Note! Your account is to be insured. It means that the Federal Deposit Insurance Corporation (FDIC) protects a financial services consumer if the bank becomes bankrupt. Credit union accounts are also protected by the National Credit Union Administration (NCUA).

Additional Information for Opening a Bank Account

Banks allow clients to submit their personal data online. However, some financial institutions may additionally ask for a copy of your ID, driver's license or another document in order to confirm your identity.

You may have to sign the card. In this way, a bank confirms your consent to receive statements and other communications online. In case a user is not an adult, it is necessary to additionally provide data about one of the representatives who sings the relevant agreement.

How to Replenish Your Account?

In My Account an initial deposit usually means any transfer from an existing account. If your bank enables to make online transactions you can replenish your account by cheque or wire transfer. You can deposit cash at any bank office as well.

The next step after entering bank details for a transfer is specifying a required amount. Payment processing can take up to several days and after that you can safely start using and managing your new My Account.

What To Expect When Opening a New Account?

It does not take much time to complete an application for opening an account especially if you do it online.

Important! Some banks do not require a mandatory deposit while others require to pay $25-100.

If you already have an account you ca easily transfer a required amount that complies with the initial deposit requirements. A bank may charge a fee for such transactions. In the event that you are unable to transfer money you can deposit money into your account by cheque or cash.

If necessary, cancel your old account

In order to prevent the bank from imposing penalties on you it is important to know how to change the financial institution in a proper manner. Please follow these recommendations for a smooth transition:

  1. Direct deposit. Inform your employer about your new account.
  2. Automatic bill payment. Cancel all previously configured transactions both on your smartphone and the provider's website.
  3. Recurrent transfers and related accounts. These include configured transfers between accounts.
  4. Smartphone apps, text banking, and notifications. Remove an old app and download a new one. Disable any previously configured notifications.
  5. Paper cheques. Delete all unnecessary cheques.
  6. Cancellation. Consult with your bank about the termination procedure.
  7. Wait until you receive a written notice from the previous bank. This document should indicate that your account is closed. Check the terms and conditions for reopening your account.

Important! Some financial institutions may reopen closed bank accounts to reactivate automatic payments. As a result, the account holder has to pay fees again.

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