How to Open a Checking Account Online?

By Laura Chapman

Overview

Avoid wasted time in long bank lines by opening a checking account online. Most Internet-based accounts come with all the features you expect from a "regular" checking account that you would open at a bank branch. In fact, many brick-and-mortar financial institutions allow new accounts to be created online. Accounts that are entirely electronic--with no physical bank branch to visit--are also an option. Privacy and security are important factors to consider as well, but reliable institutions address this well.

Step 1

Choose your bank. You will want to consider whether you value having a physical branch to visit, or are more interested in the extra benefits of an electronic account. Physical bank branches have overhead costs to pay, and they are more likely to charge fees and offer less incentives to you. Electronic checking accounts, such as with ING Direct, offer incentives like earning interest on your balance, free online bill pay and free paper checks mailed when necessary.
Step 2

Read the terms of the account you would like to open very carefully to be sure its terms suit your needs. If you pay your bills online regularly, you will want to be sure this service will be available with your new account. If you write a lot of paper checks, you will want an account that doesn't have limits or fees for number of checks written. Also make sure that your account will be insured by the Federal Deposit Insurance Corporation (FDIC).

Step 3

Apply for your account. Each financial institution has its own forms, and they vary somewhat in the information required. However, all financial institutions will require that you verify your identity. Most will ask for your social security number. Some brick-and-mortar banks will also ask for your driver's license or state issued ID number. You will also provide address and phone number, and you likely will be asked for employment information.
Step 4

Verify that all information is correct before you continue with your application. Go back to make changes if necessary.
Step 5

Make your initial deposit. When opening an account online, you may be required to do this by transferring funds from an existing account. Your institution may also offer the option to charge it to your credit or debit card. Some brick-and-mortar banks may allow you to submit the application without the deposit, but some may require you to visit the bank and make a deposit within a certain time frame.
Step 6

Wait for your ATM or debit card to arrive in the mail, as well as paper checks if you ordered them. Verify that your name is correct on your ATM card. Call to activate it. Verify that all information is correct on your paper checks, contacting your financial institution if you spot any errors. You are now ready to use your new account.

Skill: Moderately Easy
Tip: Always be sure to do business with banks who are FDIC insured.
Tip: Be sure to check out the benefits of an electronic checking account with ING Direct. The benefits of the accounts are very competitive.
Tip: Links to some other banks have also been included in the resources section.
Warning:
Never give out personal information in an email.
Beware of phishing scams. Verify that the URL you are visiting to do your online banking is legitimate. Forward any suspicious emails to your financial institution.

More Essortment Articles