Can I Open a Bank Account With No Deposit?
Can you open a bank account with no money? This might sound like a bizarre question, considering that bank accounts are usually opened to store money and keep it safe. However, there are many situations when a customer might need to open a bank account without any money. For example, when a teenager gets their first job, they may need to open a bank account before they receive their first paycheck to set up direct deposit.
While opening a bank account with no money is possible, only some businesses allow customers to do so. Read on to learn more about the requirements to open a bank account and how to get started opening an account without an initial deposit.
Can You Open a Bank Account With No Money?
Yes, it is absolutely possible to open a bank account without any money. Many banks, especially online banks, offer an opportunity to open an account with no opening deposit requirements. With that, you won’t need any cash in hand or funds ready to transfer in order to open a bank account.
Can You Keep a Bank Account Open With No Money?
Opening a bank account without any money is one thing. But it’s natural to wonder how long you will be able to keep the account open without adding any money. Every bank has different rules about this issue. Many banks require you to make a deposit that hits a certain threshold within a specified period of time, otherwise, the financial institution may close your new account.
For example, Capital One’s 360 Checking Account requires you to add funds within 60 days. If you miss that deadline to add funds, the bank will close your new account. With that, opening an account is just a starting point. You’ll need to add funds within a short timeframe to maintain access to your new bank account.
How To Open a Bank Account With No Money
It is possible to open a bank account without cash in hand. While most customers prefer to deposit a few dollars into their bank to begin earning interest, there is no law that says a checking account needs to have a base balance. However, not every bank allows customers to open an account without making a deposit first. Here’s how to find a bank that allows customers to create an account without a deposit.
Do some research: Online banks are the most popular banking option for men and women looking to open an account without a large initial deposit. Begin by researching a few of the most popular online banking options and compare those that offer no initial deposit services.
Explore the website and look for new offers: Many banks provide incentives for new members who join. New account holders may be able to open a bank account and take advantage of a small cash injection by choosing a bank offering a new sign-on bonus.
While offers are constantly changing, some examples of banks that have provided customers with a sign-on bonus when opening a new checking account in the past include Wells Fargo and TD Bank. Explore offers and contact a representative to learn more about available offers. Make sure to ask about minimum deposits when connecting with representatives to ensure there is no confusion when making an initial deposit.
Apply for an account: The first step is submitting pertinent personal information after customers find a bank they want to open an account with. Follow the application steps laid out on the website. The specific information that customers will need to submit to be approved for financing will vary by provider, so be sure to do plenty of research comparing providers before considering where to open an account.
Transfer money to the account: Although customers may want to open a bank account with no additional funding, they will need to do so eventually to make purchases through the account. Transfer money to the new bank account according to the rules laid out by the company issuing the account. As soon as the account is funded, customers can begin taking advantage of all the benefits of having a bank account, including interest earning and debit card access.
Which Banks Let You Open an Account for Free?
The list of banks that provide users with account access without an initial deposit is constantly changing. Some examples of banks currently allowing users to open an account without first making a deposit include:
Keep in mind that some banks may only allow users to open select types of accounts with no minimum balance while reserving higher-value accounts — like those with higher interest rates — for customers with a larger base balance. Consult each bank to learn more about account options without a required initial deposit.
What Is Required To Open a Bank Account?
Before customers can open a bank account, they must provide personal documentation, including the following.
A government-issued photo ID — driver’s license, passport, military identification card, etc.
Basic personal information — including your full legal name, date of birth and current address.
An initial deposit for banks that require one.
Identification documents and details for anyone else on the account if the customer is opening a joint account.
A Social Security number or other proof of permanent residency.
After submitting personal information, a bank associate will open the account and provide all account holders with debit cards and details for online banking. Customers opening a bank account with an online bank may need to wait a few days before receiving their cards in the mail.
Final Take
Even when account holders don’t have a balance to deposit into a bank account, they can still enjoy the safety and security of a bank account. A bank account provides a safe place to store future funds. New account holders must check on overdraft fees when choosing where to open an account.
FAQ
How much money do you need to open a bank account?
The specific amount of money that you will need to open a bank account will vary depending on the bank where the client is opening an account. While some banks require $0 minimum deposits, many will require that new account holders deposit at least a few dollars when starting the account.
Which bank is the easiest to open an account with?
Some of the easiest banks to open an account with include TD Bank, Capital One, Chase Bank and Synchrony. These banks are easiest to open an account with because they require new users to submit less information to finalize their account creation and require lower minimum initial deposits.
Do you need cash to open a bank account?
Some banks don't require cash to open an account. But customers may need cash when opening a bank account in person or when opening their first account. Account holders who already have some type of checking or savings account open may be able to meet the initial deposit requirement using a wire or standard ACH transfer from an established account.
Sarah Sharkey contributed to the reporting for this article.
Data is accurate as of Nov. 10, 2023, and is subject to change.
This article originally appeared on GOBankingRates.com: Can I Open a Bank Account With No Deposit?
