How to open a bank account online

Opening a bank account online usually takes about 10 minutes – much faster than visiting your bank branch. In today’s fast-paced world, this type of convenience is priceless. Here’s a rundown of what to expect when you open a bank account online.If you already have a current account, there are a number of banks that offer cash incentives for switching online.

Steps to open a bank account online

Follow these steps to open a bank account online.

• Step 1: Compare accounts to find the right one

  Shop around to find the best bank account. Factor in the card type, minimum balance requirements for savings accounts, whether you can bank online or via an app, and any fees, including cashpoint withdrawal fees, monthly fees and whether the account waives fees if you make direct deposits.

• Step 2: Decide if you want a single or joint bank account

  If you open a single account, you’re the sole owner and no one else can access your money. But with a joint bank account, you share ownership with someone else, usually a family member, significant other or business partner. They have equal access to the account and can use the money however they wish.

• Step 3: Apply for your account online

  Click Go to site and a new window will open, sending you to the account provider’s website and a secure online application. You’ll need to provide basic information about yourself such as your name, date of birth, address and social security number. Make sure you have this information on hand before you start the application as the webpage can time out and close if you leave your computer unattended for too long.

  After you complete an online application for a bank account, you’ll get an email from the account provider with information about what happens next. This email should come within a minute or two after you submit the application to the bank. It may come with instructions on verifying your identity, or you may need to do that first.

• Step 4: Verify your identity

  You’ll need to provide a government-issued ID before you’re approved for an account. Most banks will let you take a picture of your ID with your phone, though some will require you to verify your identity in person. If you’re already a customer of the bank, you might be able to skip this step.

• Step 5: Make a deposit

  Most accounts will require you to make an opening deposit using a debit card or an account and sort code for an existing bank account. But if this is your first bank account and you plan to make an opening deposit in cash, you’ll probably need to sign up for an account at a bank branch.

• Step 6: Your debit card arrives

  If the account you signed up for includes a debit card, it’ll arrive in the mail after you’ve been approved – you’ll find out how long it takes to ship in the confirmation email. The debit card and PIN are sent to you separately for security reasons. When you get your card, you need to sign the back and activate it so you can make withdrawals. This is a simple process that can be completed over the phone or online.

• Step 7: Start using it!

  Your account is ready to go. You’ll be able to make deposits and withdrawals, as well as use any other features associated with your account. To finish setting everything up:

  • Set up Internet banking. This lets you manage your money and make payments to other accounts from your phone, computer or tablet. Download the account provider’s app and follow the on-screen instructions to set up your online banking.
  • Switch your direct debits and automatic payments. If you signed up for a current account, decide whether you want to transfer all of your automatic payments to your new account. If so, you’ll need to sign into your existing accounts and change your bank account information.

Eligibility requirements

To open an account online, you’ll generally need to:

• Be a UK resident with proof of a UK address
• Be at least 18 years old – some banks will let minors open an account with a guardian
• Be able to provide a government-issued ID

Read up on what are the requirements to open a bank account

What do I need to open a bank account online?

Identification

Personal information

Deposit

The whole process shouldn’t take more than 10 minutes. If you’re at least 18 years old, you can apply for most accounts online. You’ll be provided with a checklist of things you should have with you before you apply. If you’re an existing customer of the bank, make sure you have your relevant customer ID or account number.

Identification

Requiring ID helps banks to protect you from fraud. They need to verify your ID to make sure it’s really you opening the account, and not someone trying to steal your identity.

Personal information

Most accounts allow you to apply for a joint account with one or more people. If you’re applying for a joint account, all account holders will need to provide their personal information, including proof of address and ID.

Deposit

Some institutions will let you open a bank account online with no deposit, but most times you’ll have to put a little money down. Minimum required deposits often increase with a higher interest rate or better features offered.

Benefits of opening a bank account online

There’s no need to visit a branch to open a bank account anymore. You can open a bank account, deposit money and set up automatic payments all from the comfort of your home. Once you’ve applied, just wait for the card to be sent you in the mail, activate the account and you’re good to go.

• • You can skip the bank queues.
  • The application forms are easy to use.
  • It usually takes less than 10 minutes.

What to watch out for

You may have to visit a local branch to open a bank account if you run into any of these challenges.

• No credit. Most banks verify your identity by doing a soft pull on your credit. If you haven’t built any credit yet, you may need to visit a local branch to verify your identity and complete your application process.
• A poor credit rating. If your credit score isn’t great, your application may be denied when you open an account online. But visiting a local branch could increase your chances of getting an approval.
• A minor. Anyone under the age of 18 can’t open a bank account without a parent or legal guardian co-signing on the account. Most banks require you to visit a local branch to set up this type of account.
• Non-UK citizen. Non-residents can still open accounts at some banks in the UK, but there are extra hurdles to jump through. You may be required to bring your passport as well as your work visa or student ID to a local branch to verify your identity and complete the application process.

Bottom line

The days of spending an hour at the bank to open an account are gone, and you can open a new current or savings account from your computer or phone in minutes. But don’t let the speed and convenience rush you into making a decision. Compare savings accounts or current accounts before getting started to find the one that’s right for you.

Frequently asked questions

• How do I activate my account and card?

  You can activate your card online or over the phone. The primary account holder will generally need to activate their card first before additional cardholders can do the same.

• How do I set up online banking?

  Once you’re approved for the account you can register for online banking. In most cases you’ll be able to do this online or via the app, but some banks will require you to call customer service to set up a password.

• How do I get my bank statement?

  By default paper statements are sent to you in the mail each month after your account is open. You can choose to get electronic statements instead by calling the provider or by logging on to the online banking facility.

• Can I open a bank account online from outside the UK?

  Possibly, but it depends on the bank and whether or not you’re a UK citizen or resident. Call the bank you’re interested in for more information.