Opening a bank account used to mean paperwork and long lines. Now you can do it in minutes without leaving your couch.
But while many banks offer online applications, knowing what you have to do – and what might get in your way – can make the process go even quicker. Here’s how to prepare ahead of time so you can open your account fast.
Step 1: Pick the right account type
Banks may offer several different kinds of accounts, but the core differences are usually in the details, like maintenance fees, minimum balance requirements, and interest rates.
Potential roadblock: “I’m not sure what I need.”
Picking the correct account requires a bit of research. However, a good guideline is to open a checking account if you want a safe place to store money you use for common expenses like rent and groceries. Get a savings account if you’re putting money away for an emergency fund or other financial goal.
Step 2: Choose a bank that lets you open an account online
The fastest way to a new bank account is by applying online. But that doesn’t mean online banks are your only option. Many brick-and-mortar banks let you apply online, too.
Potential roadblock: “How do I know a bank is safe?”
Whether you’re considering a traditional or an online-only bank, do some quick research before you apply. Stick to well-known brands or verified online banks, read customer reviews, and most importantly, pick an FDIC-insured bank.
With an FDIC-insured bank, eligible deposits are insured by the United States government. Your money is protected up to $250,000 total for all your accounts in the same ownership category at one bank.
Step 3: Gather your documents
All banks need to verify that you are who you say you are before they let you open an account. That means providing documents that prove your identity, address, and date of birth.
Potential roadblock: “I don’t know what documents I need.”
Most banks ask for one or more of the following:
- State identification card
- Driver’s license
- Government-issued passport
- Social Security number
- Permanent resident card
This isn’t a complete list, but it gives you a general idea of what sort of documentation banks want to see.
Some banks accept alternative forms of identification. For example, you may be able to apply using a foreign passport, student ID, or an Individual Taxpayer Identification Number. A lease or a recent utility bill can sometimes be used to verify your address.
Banks typically list all accepted documents on their websites. Check before you start your application so you can gather everything you need in one go.
Step 4: Fill out the application
If you’ve worked through the first three steps, filling out an application should take no time at all. Make sure you’re using valid identification with the correct spelling of your full legal name and a U.S. mailing address. Banks usually won’t accept a P.O. box.
Potential roadblock: “My application was denied.”
Banks may deny applications for simple errors, like a typo that causes a mismatch with your identification. If that’s the case, a quick call to customer service can often resolve the issues.
However, denials can happen for more serious reasons. Banks may use consumer reporting agencies to review banking history. Negative marks, like bounced checks and unpaid fees, can lead to a denial.
If that happens, the bank has to tell you why your application was denied. You can then request a copy of your report from the reporting agency and dispute any errors that may be affecting your application.
Step 5: Activate and fund your account
Once your account is approved, you may need to activate it. This usually involves setting up a username and strong password, verifying your phone number or email address, and logging in. You might also want to download the bank’s mobile app to get instant access to your account and transfer money immediately.
Some banks may also require you to fund your account within days of activating it. One of the fastest ways to do this is by linking an external account to your new account and transferring money electronically. If you don’t currently have a bank account, look for a bank with zero minimum deposit accounts.
Potential roadblock: “I don’t trust banking apps.”
Banking apps are generally very safe. Most use encrypted technology, multifactor authentication, and biometric logins to protect your account.
Another safety measure is fraud monitoring. Most banks use AI to detect suspicious activity in real time.
Open a bank account with confidence
Opening a bank account today is faster and easier than ever, especially when you know what to expect. With just a little preparation, you can set yourself up with a secure, accessible place to manage your money in minutes.
Resources
- https://www.fdic.gov/resources/deposit-insurance/understanding-deposit-insurance
- https://www.helpwithmybank.gov/help-topics/bank-accounts/required-identification/id-types.html
- https://www.nerdwallet.com/article/banking/undocumented-immigrants-bank-accounts
- https://www.cnbc.com/select/what-to-do-if-denied-bank-account
- https://files.consumerfinance.gov/f/documents/cfpb_adult-fin-ed_checklist-for-opening-an-account.pdf
