Online banking is very popular nowadays. Pay bills, transfer money and access your current account transaction records, all of which you can do online.
Because it is very popular, almost all banks open accounts online. With an online bank account, all your financial affairs can be easier. Some banks even allow you to deposit checks just by taking a picture of your check. You can access information wherever you have access to the Internet, on your computer or mobile device.
Opening an online bank account now is quick and easy. You only need a few minutes and can be done from your home or office – you don’t need to come to the bank and have to wait in line. In addition, online banks are generally also insured by the FDIC, offering higher interest rates, and lower costs or even without fees.
Where can I open an online bank account?
Almost all banks and other financial institutions currently open opportunities for you to apply for online accounts. Signing a physical document (paper) is still needed. But you can just wait at home because the bank will send the document home. Even some banks have received electronic signatures. If you are interested in opening an online bank account, you can simply visit the bank’s website and look for the option “Open an Account Now.”
What are the Advantages of Online Bank?
Miriam Caldwell, as stated at thebalance.com, mentioned there are five advantages of online banking.
- You can use online banking to pay your bills. This will save costs because you do not need to pay for buying stamps and avoid losing checks in the mail.
- With online banking, you can access account history and transactions from anywhere. This can also help you find out the number of transactions after losing your receipt.
- Online banking also allows you to transfer money between accounts faster. You also don’t need to use telephone services, as well as save money on the road because you don’t need to come to the bank.
- Most banks currently have applications on mobile that allow you to take advantage of online banking through your mobile. This makes online banking even more convenient and allows you to quickly check your account wherever you are.
- Many money applications automatically synchronize with your online banking information. This makes calculating your budget much easier. You can open this application through a computer at home or through your mobile device so you can stay up-to-date when you are.
What are the requirements?
There are several requirements that you must complete to open an online bank account:
(1) Social Security number or, for noncitizens, another identification number;
(2) Valid driver’s license or other government-issued ID; and
(3) Debit card information, or routing and account numbers, for other bank accounts that you have. You need this information to make an initial deposit to your new account.
Types of Account
Before you open an online bank account, you must decide what type of online bank account you will choose.
Single or joint account? If you choose a single account, you are the only owner. A joint account is an account that you have with other people, generally family members or other important people.
Checking, saving or other?
Determine the main purpose of this new account, whether generating interest on money set aside in savings or having unlimited access to cash with a checking account. At present not a few financial institutions offer a lot of savings or demand deposits. You need to compare before choosing the features that are most suitable for you, including interest rates, balance requirements, various fees that come with the account.
Another important thing you need to do is how to get rid of these costs. You also need to make sure that the account is insured by the FDIC (Federal Deposit Insurance Corp.). If your account is insured, the FDIC will protect your money if the bank fails. Accounts in credit unions have equivalent protection from separate government institutions, the National Credit Union Administration.
Fill out the Application
You are advised to use a secure home internet connection or a trusted network. Fill out the application carefully with your personal details, which include: Name, Address, Contact information, Evidence of Identification and Citizenship. You also need to check to spell. Most of the requirements for opening an online bank account are done online.
However, in some cases, there are documents that must be physically sent by fax or additional documents, such as a SIM copy, to help verify your identity. As a requirement to open an online bank account, some financial institutions sometimes ask for details about the work, income, and accounts that you have in other banks. If you are underage, you also need parental consent as a joint signatory.
Next, you will be asked to confirm that you have read the agreement about opening an online bank account. If you only register for an online bank account, you may have to accept a “paperless agreement,” which means there are no bank reports or messages to be sent by post.
Make an Initial Deposit
For the initial deposit to a new online bank account, it is done by transfer from an existing account. If you don’t have an account, you can send money orders. If you don’t send money orders, you must open a new account at the branch bank. After you enter details for the transfer, select the amount that meets the minimum balance or start deposit requirements. To process, this fund generally takes several days. After the funds are processed you can start managing your new account.
The rapid development of online banks is a necessity that cannot be avoided, along with the development of very fast internet technology. Many benefits that you can get from opening an account online. Online banks usually offer an easy way to the bank for free, the best place to find high-interest rates, and make your life more comfortable. With an online bank, you will get an amazing experience. You also now have a better idea of what is expected.