What Is Bank Online?
Online banks allow us to manage money online through a cell phone or computer. We no longer need to come to the bank so we can still do other things that are more important. With online banks we are easier to use, generally applying high-interest rates, cheap, sometimes free of charge, and good enough to save your money.
The use of electronic money continues to increase. Although most people still use cash, the trend of using electronic money is becoming increasingly popular. Why? Because electronic money tends to be easier, cheaper, and safer. At present, banking plays an important role in the process of increasing the use of electronic money.
Initially, there were only a few banks that specifically provided services online. But now, even large banks are competing to open accounts online. Although online banks are growing, the existence of specialized online banks still has its own market.
What are the benefits of opening an account online?
Online banks do not only function as a place to store your funds, but can also provide notary services, safes, and official checks in an instant. Other advantages, we don’t need to come to the bank to open an online account. You can open an online account, save money, and make any payments in your home. If you have registered, the bank will send a card to your home. Next, activate the card and you can use it according to your needs.
There are numerous benefits to online banking, one of them is providing direct services. Besides, there are three advantages if you open a bank account online, you don’t need to queue, the application form is easy to do, and doesn’t take long – it’s usually quite 10 minutes.
What you should consider before opening an online bank account?
However, if you lack technology, online banking can be a problem for you. To avoid the worst because of problems with a lack of mastery of technology, it might be best to have face-to-face conversations.
Online banks do not provide cash withdrawals. But don’t worry, because online banks generally have an ATM network that can be accessed easily.
In terms of security, online banks are considered safer by traditional banks. Because there is no cash, the risk of theft such as money, checks, and other securities can also be resisted. In addition, information about accounts is also safer. If fraud or errors occur, federal law often protects you, as long as you act quickly.
Where to Open an Account
Almost all financial institutions currently open accounts online. Manual signatures are still needed. For this requirement, the bank will send a form that must be signed to your address. In fact, to facilitate the account opening process, there are currently banks that accept signatures electronically.
What You Need to Open an Account Online
All you need when opening an online bank account is personal information so that the bank can verify your identity. Personal information needed, such as Social Security Number, Tax ID Number, Date of birth, and any government-issued ID (driver’s license, passport, U.S. military ID, etc.) numbers, with the issue and expiration dates.
In addition, even if you operate in a virtual world, federal laws require that you provide a physical address. Banks also need contact information. The bank requires your home address, telephone number and email address.
Funding information is also needed. How will you add funds to your account? Banks generally require an initial deposit to open an account. You can use a credit or debit card. Like opening an account through a teller, you also need to make an initial electronic deposit to your account.
What are the steps to open a bank account online?
Quoting from finder.com, there are at least five steps that you need to do to open an online bank account.
Step 1: You need to compare many banks to get the most suitable bank account for you.
Step 2: Apply for your online account. Click ‘Open’ and the new window will open directing you to the account provider ‘s website and a secure online application.
Step 3: Verify your identity. If you are a new customer, you need to verify your identity before your application is approved.
Step 4: You accept a debit card. If your application is approved, the bank will send a debit card to your address.
Step 5: You have registered as a bank customer and can enjoy the facilities provided.