A bank account is a special arrangement that you make with a particular bank to deposit and use money. Similar accounts are also present in credit unions, although the process of acquiring them differs from that of a bank since you must share a common bond with the existing members. Banks allow everyone to have an account with them so long as you have all the requirements. It is possible to open an online bank account with an instant debit card.
Applying for a bank account online is very easy since you only need a smartphone and a secure internet connection. You can also have a computer to open an online bank account. All required documents only need to be uploaded for verification since you won’t come into physical contact with any bank official during the application process. Everything is purely online.
Banks have Checking and savings accounts. Checking accounts come with debit cards that you can use to withdraw cash from your account anytime at ATMs that accept the card. Some savings accounts also issue debit cards but with many restrictions on how to use the card. Banks will dictate how many times you can withdraw money from savings accounts each month to ensure that you save adequately.
What are the factors to check when opening an online bank account?
There are various factors you should put into consideration when opening a bank account. If you are not careful, a bank account can be an avenue of losing your hard-earned money due to numerous fees associated with specific accounts. The following are the factors to check before opening a savings or checking account. Have a look.
i) Monthly fees
Some accounts come with monthly maintenance fees for the accounts. You must be keen to check bank accounts with no monthly fees. If it is not possible to get a bank account with no fees, you can get an account with lower fees.
ii) Annual fees
Most bank accounts charge annual fees. Such fees are usually large amounts of money that you can save to use for various things. You can find an account that charges $100 as annual fees for using their services.
iii) Interest rates
When opening a bank account, you can choose the one that has low interest rates on loans. That way, you will be able to save significant amounts of money. Credit Unions usually charge low interest rates on loans compared to banks.
iv) APY
When opening a savings account, checking the APY is very important to ensure that you earn large amounts of interest on your savings. Some checking accounts also earn APYs if you maintain a certain amount of money on your account.
v) Transaction costs
You need to know the amount of money you have to part with when you perform certain transactions. These include withdrawal charges, foreign transaction charges, purchase transaction charges, overdraft fees, and so on.
vi) Transaction limits
For a business account, you need to consider the one with high transaction limits. Businesses send and receive large amounts of money, and thus there is a need to get an account that will handle large volumes of money.
How to apply for an online bank account with instant debit card?
Online bank accounts allow you to manage your money using your smartphone or computer. You do not need to visit a bank’s branch to withdraw or to send any money with your account.
Before opening a bank account, you must first analyze the available bank accounts and determine which suits you. There are numerous bank accounts in the market that you can open.
Next, you must gather all the required information and documents to open a bank account. You will need the following.
- A Social Security Number (SSN)
- A government identification document: can either be a government-issued ID, a passport, or a driver’s license.
- Phone number
- Physical address
- Email address
Once you have gathered all the requirements and chosen the right bank account that suits your needs, you can apply online. You can either download the application for the concerned bank or apply online at the bank’s website. Fill out the information carefully and make sure that you tick to get a debit card delivered to your physical address. After filling the forms, you can then submit them for verification.
Most banks can verify details within minutes to give you feedback on whether you qualify for the given account or not. Remember that it is not a guarantee that you open a bank account successfully. Most banks cannot allow you to open a bank account if your names are in the ChexSystems. However, that should not worry you since there are online checking accounts, no ChexSystems, no opening deposits that you can easily open.
What is ChexSystem?
ChexSystems is an agency that lists bad accounts and credit card users. You can find yourself in the ChexSystems for the following reasons.
- Closing your account with a negative balance.
- Writing checks that bounce.
- Using your bank or credit union account for fraudulent activities.
You may find yourself in the ChexSystems whether you misuse a checking or a savings account. Sometimes you may find yourself in the ChexSystems just because someone else used your details to open a bank account and went ahead to misuse your account. In such a case, you can complain about identity theft and have your case settled.
Once you enter the ChexSystems, your details can stay there for up to five years. You can settle all your pending fees with your previous bank to start the journey of removing your name from the ChexSystems records. As you continue rectifying your previous mistakes, you can also open a second chance checking account. It is easy to get a second chance checking with no opening deposit to help you build a reputation with your bank.
What are the differences between savings and a checking account?
Checking and saving accounts are the two types of accounts that you can open depending on your needs. A checking account helps you to access your money 24/7. That is why checking accounts are also called spending accounts. They are for everyday expenditure and that is why you get a debit card to use alongside your checking account.
A saving account allows you to deposit money to use in the future. The accounts limit you on when you can access your money and how much you can withdraw from your account. As I mentioned earlier, some savings accounts issue debit cards to withdraw money with. You can have a Certificate of Deposit account to lock your money until a certain date.
If you are no longer want your savings or checking account, you can close it. You can then open another bank account later in life when in need. There are many free checking accounts with no credit check or deposit that you can open, and thus you can always open at will.
How do you use a bank account?
There are various ways you can use a bank account. These include the following.
1) Save money
As I have just mentioned above, you can open a savings account and start saving money for your business or any other project for the future. Saving money is very important to help you have money for any kind of need that requires money.
2) Receive payments
A bank account allows you to receive funds from others. If you are employed, you can receive your salary from your employer via your account. You should give them routing and account numbers to set up a direct deposit to your account. If you receive government benefits every month, your bank account will be the better option to get your money.
3) Spend money
You can have an account to keep the money for your day-to-day spending. Checking accounts allow you to access money for your daily expenditures. For instance, you can withdraw money from a checking account any time of the day.
4) Send money
Bank accounts allow you to send money to others. You can send money with a checking account number instantly to account holders of your bank or a different bank. When sending money to an account of your bank, you only need the recipient’s bank account, and you are done.
When transferring money to an account of another bank, you need the routing and account numbers of the recipient. Sending money within the same bank takes a short time to reflect on the recipient’s account, while transferring money to a different bank takes several days to complete.
5) Buy goods and services
Banks allow you to pay for goods and services online or at physical stores. You can either pay directly to the business account number or pay via a payment platform such as National Processing. Furthermore, bank accounts allow you to pay your bills such as electricity, water, and internet. You can set up a recurrent bill payment to not initiate payments now and then.
Bottom line
A bank account is a special arrangement with your bank where you can deposit and withdraw money. You can apply for savings or a checking account online with a phone or smartphone. An online bank account allows you to manage your money online using a smartphone. Bank accounts with a debit card allow you to access money from your account 24/7.
