Opening an online bank account: Our step-by-step guide
It’s never been quicker nor easier to open a new bank account. Here’s the information you need to get started.
Key takeaways
Bank accounts offer a secure place to keep your cash
It’s quick to open an account but make sure it’s the right one for you
If you’re switching accounts, the Current Account Switch Service (CASS) guarantees an automatic switch within seven days
Your money will be protected up to £120,000 per person if the bank fails
Personal details, proof of ID and address will be needed to open a bank account
Do I need a bank account?
Bank accounts have become a fundamental part of personal finance management, providing a secure place to store your money and access a range of financial services.
Reasons why you need a bank account include:
Why do you need a bank account?
Salary deposits
Employers typically pay wages directly into a bank account
Bill payments
Essential services like rent, utilities, and phone contracts require a bank account for direct debits
Keeping track
Bank accounts provide a digital footprint of your financial history. This can be invaluable when you need to show proof of payment for transactions, whether it's for personal record-keeping or resolving disputes
Online shopping
A bank account allows secure online purchases and digital transactions
Credit score building
Regular account activity helps establish and improve your credit rating
Access to financial services
Banks offer overdrafts, loans, and savings accounts for better money management
Keep money safe
Having a bank account can also protect your cash. If your bank is regulated by the Financial Conduct Authority (FCA), your money will be protected by the Financial Services Compensation Scheme (FSCS).
Under the FSCS, up to £120,000 in your bank account or £240,000 in a joint account is protected if the bank or building society goes bust.
What should I consider before opening a bank account?
Before you dive into opening a new bank account, consider what features are most important to you:
Things to consider before opening a bank account
Is the account easy to use?
Consider how streamlined the bank’s services are, whether you’ll need a branch or customer service helpline, or whether you can do all your banking online or via mobile
Is there a fee for the account?
While many bank accounts are free, some packaged accounts come with a range of benefits, such as travel insurance, but usually charge a monthly fee
Is there a minimum deposit?
Some accounts set conditions where you need to pay in a minimum amount each month, as well as setting up standing orders or direct debits for your bills
Will you need an overdraft facility?
While overdrafts are not guaranteed they may be offered as one of the features of an account
Are there switching incentives for new customers?
Banks often offer a cash bonus or other perks to encourage you to switch accounts
Would you like an account that offers rewards and cashback?
Some bank accounts come with additional features, which might include cashback and other rewards when you pay a utility bill through the account, for example
Do you want an account that offers zero fees on using money abroad?
If you’re travelling a lot or sending money overseas, it’s worth looking for an international bank account that will give you competitive rates
What information do I need to open a bank account?
Opening a bank account will require you to provide personal information such as your name, date of birth, nationality, address and previous addresses, marital status, and contact details.
Proof of address can include a recent utility bill, council tax bill, rental or mortgage contract, bank statement, or a benefits or state pension letter. This information helps the bank confirm your identity and assess your financial history.
Step-by-step guide to opening a bank account
How to open a bank account
1. Research and compare accounts
Look at different banks and account types to find one that suits your needs
2. Check eligibility requirements
Ensure you meet the bank’s criteria, such as age, residency, and income
3. Gather required documents
Typically, you need proof of identity (passport or driving licence) and proof of address (utility bill or tenancy agreement)
4. Apply online
Click through and complete the application form on the bank’s website. If the bank has a local branch, you can visit in person
5. Identity and credit checks
The bank verifies your documents and may perform a credit check, depending on the account type
6. Receive approval
If your application is successful, the bank confirms your account opening via email or post
7. Set up online and mobile banking
Register for digital banking to manage your account and transactions conveniently
8. Receive your debit card and PIN
The bank sends your card and PIN separately for security, allowing you to start using your account
9. Make your first deposit
Add funds to activate the account and enable transactions
Start using your account
Use your account for day-to-day money management as needed
How to switch from an existing bank account
It’s easy to switch bank accounts to a new one – all the details will be handled by your new bank. When you apply, simply tell your new bank that you’d like to move over your current account and they will guide you through the process. The Current Account Switch Service (CASS) is a guarantee that the switch will be seamlessly completed in seven days.
Switching is a great way to make sure you’re getting a bank account that does the most for your money. Even if you’re happy with the bank account you have right now, it always pays to see what else is on offer – and there’s no better way than by comparing online.
Personal Finance Expert
Our expert says...
“As long as you have digital access, opening a bank account in 2025 is easier than it’s ever been. No longer do we need to head to a branch with bundles of paperwork. Now, banks are using processes such as video verification to get you signed up faster. One big benefit of this is that if you do want to switch banks, you can do it with less hassle – and because all banks know this, they all have to up their game with customer service.”
Other useful guides
For more information on managing your finances, check out these guides:
Comparing bank accounts with MoneySuperMarket
Finding the right bank account can be a daunting task, but with MoneySuperMarket, you can easily compare current accounts from leading UK banks. Sort by overdraft limits, introductory offers, or customer satisfaction to find the account that fits your financial needs.
Having a bank account is more than just a convenience; it's a necessity in the modern world. Whether you're looking to keep your money safe, manage your daily transactions, or save for the future, there's a bank account out there that's perfect for you.
With the right information and a bit of research, you can take control of your finances and make your money work harder for you.
Frequently asked questions
Can I open a bank account for someone else?
In general, you can’t open a bank account for another person – unless you’re a parent or guardian and you’re opening a bank account for a child, or you have power of attorney. However, you can easily open a joint account with another person.
How do I open a joint account?
Opening a joint account can be done online, in-branch, or over the phone. It's a convenient way for couples or business partners to manage shared finances. Both parties will need to provide proof of ID and address, and sometimes, one or both individuals may need to already have an account with the bank.
Should I open an online-only bank account?
Online-only banks, also known as challenger banks, have risen in popularity recently. Banks like Monzo and Starling are online-only as they don’t have any physical branches. You can usually open an online-only bank on your smartphone with the bank’s app or online through their website.
You will need to provide proof of identity and address so they can verify your details. Some digital banks may require you to record a video of yourself as well as supplying documents so they’re sure it’s really you.
How do I close a bank account?
If you want to close your account for any reason, simply get in touch with your bank. If you’re overdrawn, though, you’ll have to pay off what you owe before you can shut down the account.
Can I open a bank account if I am unemployed or on benefits?
Yes, you can still open a bank account, whatever your financial situation. If you’re on benefits, you’ll need a bank account to deposit the money. Just keep in mind that you might not be eligible for some types of accounts without a certain level of income.
Is there a minimum amount I have to open my bank account with?
No, many banks will let you open an account without any initial deposit.
Will opening a bank account affect my credit score?
Like any change to your financial status, opening a new bank account could lead to a small dip in your credit score. Your credit should recover pretty quickly though – it’s only a problem if you keep opening new accounts before your credit score has time to bounce back.
Author
Tim Heming
Personal Finance Expert
Tim Heming is a journalist and editor who has written about personal finance for national newspapers and consumer websites for 15 years. Tim enjoys providing no-nonsense information to help consumers...
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Collette Shackleton
Content Writer
Collette Shackleton is a highly skilled Content Writer who has over nine years’ experience creating helpful and engaging personal finance content for consumers. Collette shares her experience as a...
