Spencer Tierney is a consumer banking writer at NerdWallet. He has covered personal finance since 2013, with a focus on certificates of deposit and other banking-related topics. His work has been featured by The Washington Post, USA Today, The Associated Press and the Los Angeles Times, among others. He is based in Oakland, California.
Assistant Assigning Editor Sara Clarke
Assistant Assigning Editor | Banking
Sara Clarke is a former Banking editor at NerdWallet. She has been an editor and project manager in newsrooms for two decades, most recently at U.S. News & World Report. She managed projects such as the U.S. News education rankings and the Best States rankings. Sara has appeared on SiriusXM Business Radio and iHeartMedia’s WHO Newsradio and has been quoted in The Salt Lake Tribune, The St. Paul (Minnesota) Pioneer Press and other outlets. She is based near Washington, D.C.
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MORE LIKE THIS Checking Account Alternatives Banking MORE LIKE THIS Checking Account Alternatives BankingKnowing how to open a checking account online can give you the push to join a new bank or credit union. The application process can take just a few minutes if there are no hitches. And the benefits can be many: lower or fewer fees, new services and more perks. Here's how to get started.
Fees, features and ways to access your money can vary by checking account. Whether you open an account with an online-only bank or with a brick-and-mortar bank via its digital platform, compare costs and features ahead of time.
Watch out for monthly fees, overdraft fees and ATM fees. Find a checking account that either has no monthly fees or waives them with a minimum balance or other requirement. If your account balance tends to be low, be familiar with any overdraft fees, which can be more than $30 at some banks. Lastly, if you rely on getting cash out from your account, confirm that the bank provides free access to a convenient ATM network.
Some checking account features are standard, such as bill pay, direct deposit and ATM access. Some newer checking features include early direct deposit , fast transfers through Zelle, and fee-free overdraft coverage. Extra perks can include no foreign transaction or ATM fees on debit cards, budgeting tools and even cash-back rewards . Despite being called checking accounts, paper checks (and check writing) are not a guaranteed feature, so confirm they’re available if you need them.
In addition, while most banks have federally insured accounts through the Federal Deposit Insurance Corp., it doesn’t hurt to double-check the bank website for FDIC insurance. Credit unions have equivalent insurance through the National Credit Union Administration. Some online accounts are offered by nonbank tech companies, known as neobanks , which often partner with banks to offer FDIC-insured accounts.
Ways to access your moneyDebit cards, ATM networks, online transfers and mobile check deposits are common ways to access your money in a checking account, but more traditional (and expensive) wire transfers aren’t always available. If you go with an online-only bank, remember there are trade-offs: no branches and sometimes no cash deposits. There can be workarounds to deposit cash at an online bank .
Not all banks offer joint checking accounts or business checking accounts , so if you need one of those, start your search for those types of accounts.
You’ll generally need some documentation to open a checking account online, and for joint accounts, you’ll need the second person’s information too. Details can include:
Social Security number or, for noncitizens, a different identification number. Government-issued ID, such as a driver’s license or passport.Proof of address, such as through a utility bill or bank account statement. If your current address is on your primary ID, that may count.
Routing and account numbers to another bank account (or debit card) you own. To open an account online, you generally need to be able to fund it via online transfer from an external bank account. (If you’ve never had a bank account, here’s our guide to getting started .)
Cash Management Money Market A savings account is a place where you can store money securely while earning interest. A savings account is a place where you can store money securely while earning interest. Learn MoreSoFi Checking and Savings
SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 8/27/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
Min. balance for APY Read reviewEverBank Performance℠ Savings
Min. balance for APY Learn MoreBarclays Tiered Savings Account
Min. balance for APYThese cash accounts combine services and features similar to checking, savings and/or investment accounts in one product. Cash management accounts are typically offered by non-bank financial institutions.
These cash accounts combine services and features similar to checking, savings and/or investment accounts in one product. Cash management accounts are typically offered by non-bank financial institutions.
Learn Moreon Wealthfront's website
Wealthfront Cash Account
Min. balance for APY Learn Moreon Betterment's website
Betterment Cash Reserve – Paid non-client promotion
*Current promotional rate; annual percentage yield (variable) is 5.50% as of 4/2/24, plus a .50% boost available as a special offer with qualifying deposit. Terms apply; if the base APY increases or decreases, you’ll get the .75% boost on the updated rate. Cash Reserve is only available to clients of Betterment LLC, which is not a bank; cash transfers to program banks conducted through clients’ brokerage accounts at Betterment Securities.
Min. balance for APYCDs (certificates of deposit) are a type of savings account with a fixed rate and term, and usually have higher interest rates than regular savings accounts.
CDs (certificates of deposit) are a type of savings account with a fixed rate and term, and usually have higher interest rates than regular savings accounts.
Learn MoreMarcus by Goldman Sachs High-Yield CD
4.60% APY (annual percentage yield) as of 09/13/2024
Federally insured by NCUA
Alliant Credit Union Certificate
Annual Percentage Yield (APY) is accurate as of 09/13/2024
Discover® Cashback Debit
Chase Total Checking®
Deposits are FDIC Insured
Chime Checking Account
Monthly fee Money market accounts pay rates similar to savings accounts and have some checking features. Money market accounts pay rates similar to savings accounts and have some checking features.
Discover® Money Market Account
Applying to a new bank requires you to provide personal information. Using a secure internet connection, provide the details asked for on the application, which can include:
Full legal name. Date of birth. U.S. address. Contact information, such as phone number and email address.Information from the documents you previously gathered in Step 2, such as your ID and external bank account and routing numbers .
You might also need to sign a document, such as a signature card, as a way to confirm that you’re the account owner.
If a bank can’t confirm your identity or needs additional information, you may need to send documentation beyond the application, such as via email. Or, in the case of brick-and-mortar banks, you may have to visit a branch.
Banks typically require a minimum opening deposit, such as $25 or $100, though some banks have no minimum. A minimum opening deposit isn't the same thing as a minimum balance requirement, which is usually the amount you need to keep in a bank account to avoid a monthly fee, if applicable. Funding the account tends to involve an online transfer, though other ways may be allowed, such as by check.
Regardless of whether there’s a minimum opening requirement, you need to fund the account fairly soon after opening, such as within a month or two, to prevent the account from being closed.
Unlike when you open a savings account or a CD , a checking account has more moving parts to set up. Here’s a quick list from A to Z:
Automatic bill payments: Don’t forget to transition any automatic bill payments and subscriptions from your previous checking account, if applicable. Learn more about online bill pay .
Automatic transfers: To send money between your accounts at different banks, you can link them. Learn more about external bank transfers .
Checks: Request to have the bank mail a checkbook, if available, and if you need one.Debit card: You’ll have to wait for your debit card to be mailed, which can occur within one or two weeks of the account opening.
Direct deposits: If you receive income via direct deposit , you’ll need to set that up.Mobile app: Install the bank’s app, if you haven’t already, and save your login details in a safe place. Some banks let you sign in with a scan of your fingerprint or face.
Overdraft settings: Think hard about what services are available — and what they cost — for covering transactions that would otherwise lead to a negative account balance.
Transaction alerts: These text or email notifications are optional, but they can help you spot when your checking balance is low or an unauthorized debit card purchase goes through.
Zelle: The fast and typically free money transfer service Zelle is integrated into many bank apps. If your bank partners with Zelle, you can link your email or phone number to use Zelle for sending money online to friends or family within minutes. If not, you can typically link your checking account or debit card to other peer-to-peer apps for a similar service.
Get a new bank account - and $100 in rewardsBecome a Nerdwallet+ member, open an eligible bank account, and make a direct deposit within 45 days to start racking up rewards.
GET STARTED
Yes, banks and credit unions generally let you open checking accounts online. However, there can be instances where you need to provide more information to confirm your identity offline, such as via email or, if applicable, at a branch.
Is there a difference between opening a checking account at a bank or credit union?Generally, the process is similar, and checking accounts work the same at either kind of financial institution. Banks have FDIC insurance while credit unions have the equivalent insurance through the NCUA. Credit unions require membership and have eligibility requirements, which can range from geographic restrictions to a one-time $5 donation to a specific nonprofit. You generally need to open a savings account to establish membership, in addition to other accounts you want to open. Learn more about credit unions .
Does opening a checking account affect your credit?Generally, no. Banks may do a soft credit inquiry to check credit information to confirm your identity, but that shouldn’t affect your credit. However, some banks may factor in your credit report when determining your eligibility for an account. If you have difficulty opening a checking account, consider a second chance checking account or learn more about ChexSystems .
Does closing a checking account affect your credit?Generally, no. Closing a bank account doesn’t usually hurt your credit.
How old do you have to be to open an account?Generally, the minimum age to open a bank account on your own is 18 years old. However, you can open an account, such as a joint account, as a minor with a parent or guardian. Learn more about how to choose a teen checking account .
Can you open a checking account online?Yes, banks and credit unions generally let you open checking accounts online. However, there can be instances where you need to provide more information to confirm your identity offline, such as via email or, if applicable, at a branch.
Is there a difference between opening a checking account at a bank or credit union?Generally, the process is similar, and checking accounts work the same at either kind of financial institution. Banks have FDIC insurance while credit unions have the equivalent insurance through the NCUA. Credit unions require membership and have eligibility requirements, which can range from geographic restrictions to a one-time $5 donation to a specific nonprofit. You generally need to open a savings account to establish membership, in addition to other accounts you want to open. Learn more about
Does opening a checking account affect your credit?Generally, no. Banks may do a soft credit inquiry to check credit information to confirm your identity, but that shouldn’t affect your credit. However, some banks may factor in your credit report when determining your eligibility for an account. If you have difficulty opening a checking account, consider a
second chance checking
account or learn more about
Does closing a checking account affect your credit?Closing a bank account
doesn’t usually hurt your credit.
How old do you have to be to open an account?Generally, the minimum age to open a bank account on your own is 18 years old. However, you can open an account, such as a joint account, as a minor with a parent or guardian. Learn more about
how to choose a teen checking account
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Spencer Tierney is a writer and NerdWallet's authority on certificates of deposit. His work has been featured by USA Today and the Los Angeles Times. See full bio.
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