Tips on how to open an online checking account:
Evaluate The Bank:
The first step on how to open an online checking account is to check the bank’s reputation and see if their policies fit with your specific needs. Decide if you have the circumstances to work with an online bank or will you have certain needs that will require you to see a bank representative face-to-face. Online banking usually has lower rates because there is no need to maintain a chain of physical structures, which can cost its customers a lot of money.
Compare Accounts From Different Online Banks:
Even with online banking, different banks will charge different fees for their accounts. You want to check a variety of features that each bank may offer. Some banks, for example, may offer free checking while others may require a minimum balance. Others pay interest on your money while others may charge maintenance fees. Find the combination that will work best with you.
Gather Your Personal Information:
Even with an online bank you will need to provide them with certain personal information. While some information they need may vary, all banks will require you to provide some form of state ID, a Social Security number, proof of address, date of birth, phone number and an email address.
Go Online And Set Up The Account:
Once you have collected the information you can then contact the bank you have chosen online and follow their prompts. You’ll have to set up a user name and password, which will be your means of access to your account any time you need to.
Wait For Your Debit/Credit Card
You will receive a debit or credit card in the mail, which you will use to get cash from ATMs around the world. You can use the card to make all of your transactions wherever you shop.
Make Deposit Arrangements:
Since online banks do not have a physical location to make deposits, you’ll have to set up automatic deposits from your employer. If you don’t have a steady paycheck coming in (you are self-employed, for example) you’ll have to either open a separate account from a brick and mortar bank or set up an account with a third party that can transfer your deposits to your bank.
While online banking is gaining popularity it is not for everyone. Those who do not need to visit the traditional bank or need a face-to-face meeting with their bankers will benefit greatly from online banking. Once you know how to open an online checking account you’ll be able to enjoy many of the benefits that so many other people are getting from an online bank.
