Nowadays, how many times do you find yourself actually walking into a bank branch to conduct business? The answer, most likely, is infrequently—if at all. I can say that it’s been a really long while since I went to a branch myself. I do everything on my phone now.
The need for cash at all is dwindling throughout the country, as most people use a credit or debit card —or even mobile payment methods— to make all their purchases. Because of this, the need for a traditional bank with physical branches isn’t as prominent as it once was.
With the digital age officially here, you may be wondering if you can open a bank account online with no money. The answer to that question, of course, is yes!
With plenty of advantages to switching from a traditional bank account to an online one, let’s take a look at some ways you can open a bank account online with no money.
Why Open an Online Bank Account?
Online banks are becoming more popular every day, and the reasons are vast. First and foremost, they are very convenient. Also, online banks don’t carry with the extra costs that traditional banks with branches do, and as a result, they are often able to offer better interest rates than conventional banks.
They are also very convenient, as it is easy to set up a new account with a few clicks and taps on the keyboard. There’s no need to travel to a bank branch to fill out paperwork.
Online banks often offer perks that traditional banks don’t.
But why would someone want to open a bank account with no money?
Well, for example, if you’re an entrepreneur and you’re just starting your business, maybe you don’t have any money yet, but you need to have an account so that when you do start getting customers, you’ll have a place to save your earnings. Or maybe you want to apply for a loan and need a business-exclusive bank account to receive the funds.
Can you Open a Bank Account Online with No Money?
Again, the answer to this question is yes. There are more and more online banks offering this as a service. Why? Because they are fighting with each other to be the best options out there. They want you to pick them and, as a result, they are looking for new and innovative ways to attract customers.
One of the most popular ways to do so is to allow customers to open a bank account online with no money. This means that you won’t need to make any deposit at all when you first open your account.
Of course, you’ll eventually want to deposit money into your account, and the financial institutions that provide these accounts know this. That’s why they are confident that you will ultimately make a deposit.
Online banks don’t have as many costs to incur as traditional banks do, as they don’t have to pay for all the expenses related to the brick-and-mortar branches they run. That’s why they can offer you the ability to open a bank account online with no money, while many traditional banks require a minimum deposit amount.
What Information Do you Need to Open a Bank Account Online?
Just because digital financial institutions operate online doesn’t mean they don’t need to verify your basic information. Just like traditional banks, online banks will require you to provide a basic list of information to open a bank account online with no money.
This is especially true of FDIC-insured banks and credit unions —the only types of financial institutions that you should be considering anyway.
To open a bank account online, you have to provide:
- Your legal name
- Your address
- The financial information that will allow you to transfer money to the account
- Your contact information (phone number and email address)
- Your Social Security Number
This is the most basic information that you should have on hand when you’re going to open a bank account online with no money.
While you may not be required to deposit any money into your account when you first open it, most online banks will need you to enter the routing or account number that you’d like to link to your account so that they can verify it’s an open account that you own. Once this is completed, you’ll be able to transfer money freely to your new online bank account whenever you wish.
You may be interested: What are ACH transfers and how they work?
Are There any Free Online Banks that Don’t Need SSN?
If you don’t have a Social Security Number, fret not. Still, there are financial institutions that will allow you to open a bank account online with no money and with an Individual Taxpayer Identification Number (ITIN) instead of an SSN.
Here are some financial institutions that don’t require SSN:
- Alliant Credit Union
- TIAA Bank
- Discover Bank
Since the financial institution is online, make sure you have consistent access to the internet, whether that be at your home on a computer or on a mobile device.
How to Open a Bank Account Online with No Money
Opening a bank account online with no money is rather simple to do. Follow this step-by-step process, and you’ll be enjoying the fruits of having an online bank account.
1. Find an online bank account that fits your needs
Start with a simple Google search to find places where you can open a bank account online with no money. Make sure the bank you choose is a reputable financial institution, a legitimate credit union, or a fully insured FDIC bank.
Then, choose the one that has the features you are looking for.
2. Navigate the website and do some research
Make sure that you read through the site to see if there are any promotions or specials that you can take advantage of and if you need to enter a promo code to do so. For example, some online banks will give you $20 for free just for opening a new account.
3. Enter all your pertinent information
Follow the steps to open a bank account online with no money, and type in all the information that the financial institution requires.
4. Connect another account to your new online bank account
To transfer money into your new online bank account, you’ll need to connect it with another account you own. This can be a checking account from a traditional bank, for example.
Some financial institutions may allow you to connect a third-party app, such as PayPal. Once you enter your information, you may need to verify your account, which may take a few days.
5. Transfer money into your new online bank account
Even though you are opening a bank account online with no money, you’ll eventually want to transfer money into it so you can start using it. Once your account has been opened, and you have verified your external account, simply transfer some money into your new online bank account so that you can take advantage of all it has to offer.
Open a Bank Account Online!
There are plenty of places where you can open a bank account online with no money.
As with any financial decision, you’ll want to make sure you do your research before settling on an online bank. The online bank you choose must be legitimate —either an established credit union or an FDIC-insured bank— and that it offers you all the perks and benefits you desire.
If you’d like to learn more, read: The Best Online Banking Options for Small Businesses
As a small business owner, online banks offer plenty of benefits over traditional banks. In the same vein, Camino Financial provides a wealth of benefits and resources for small business loans that conventional financial institutions just can’t provide.
For example, our loans require less information and credit history than traditional banks, and we can get you approved for the funding you need in minutes. You can begin your process by sending an online application and you will know where you stand within 24 hours.
At Camino Financial we live by our motto “No business is left behind”. Start your process with us now!