A checking account refers to a kind of bank or credit union account that allows you to deposit and spend money without putting limitations on when and how to use your money. Checking accounts come with debit cards to access your money at ATMs and pay for goods and services online and at physical stores. Today I want to discuss online checking accounts with no ChexSystems or opening deposits.
An online bank account allows you to operate and manage your account online using your smartphone, either over the web or using an app. It is more secure to operate an online account using an app. An online checking account allows you to perform various transactions online, such as sending money, depositing checks, paying goods and services, viewing your account balance, and checking your transaction history.
Most importantly, you require a secure internet connection when operating your account to prevent fraudsters from accessing your account. When you use network connections such as public WiFis, you risk losing money from your account. Hackers can phish your login credentials and use them to access your bank account from their devices, only for you to notice later that your bank account has no money.
How to open an online checking account with no ChexSystems nor opening deposit
Numerous banks offer online checking accounts with no opening deposit nor ChexSystems. Most of these accounts are usually second chance checking accounts. It is possible to get a second chance checking with no opening deposit at various banks across the country.
An opening deposit is the amount of money you need to bank when you open a bank account to make it active. The amount varies from one bank to the other. If you do not have enough money to deposit in your bank account, you can consider opening a bank account that does not require an opening deposit.
To open a bank account online, you first need to research the available online banks that do not require you to have an opening deposit and not consult ChexSystems. After that, you can choose the most appropriate checking account that fits your desires. Other factors that you should consider when opening your account include;
i) Monthly maintenance fee
You should not be lured by a bank account that does not have an opening deposit since it may contain high monthly fees. Many banks impose monthly fees as a way of making money from your deposit. You can pay monthly fees of as low as $5 and as high as $20 or even more.
ii) Annual fees
Banks also impose annual fees on bank accounts. These are usually high since the deductions are made every year, and if not keen, you may find yourself parting with a lot of money every year. If you do not find a bank account without annual fees, consider the lowest charges.
iii) Transaction costs
When you buy goods and services, most banks usually deduct some money from your account as fees for the service. Also, some banks charge some fees when you withdraw money from bank accounts or at ATMs. Some transaction types may be free, while others may attract hefty fees. If possible, you should get a bank account with low transaction charges.
iv) Inactivity fee
Some banks won’t charge you anything if you remain dormant for some time, while others charge you a substantial fee. You should be keen to see the amount of money, if at all it exists, that you should pay when your account stays dormant for a particular duration. You never know since sometimes things change, and you may find yourself with no money to deposit in your account.
Once you have chosen the correct checking account that suits your interests, you can gather all the required documents and information. The following are the necessary details that you can gather to open your bank account.
- Social Security Number (SSN)
- Identification documents such as Passport, government ID card, or driver’s license
- Phone number
- Physical address
- Email address
- Passport size photo
The Social Security Number helps to track your tax payment as well as identify you correctly. Furthermore, your identification document also identifies you correctly to ensure that only genuine people open bank accounts. The SSN and the identification document ensure that criminals do not open bank accounts to fund their evil activities.
The phone number is necessary for communication purposes in case there is urgency. The email address is also an avenue of communication but on matters such as keeping you updated on your bank’s new terms and conditions, the new management structure of your bank, monthly statements, and other detailed information.
Lastly, your physical address helps you receive debit cards, credit cards, paper statements, and any other tangible item that your bank requires you to have. You can upload your billing statements such as water bills, electricity bills, and internet bills, among others, as proof that the physical address is yours.
After gathering the requirements, you can visit the online bank’s website and fill out the application form. You should also upload all the necessary documents for verification. Online accounts take a few minutes to apply.
What is ChexSystems?
ChexSystems is an agency that collects banking problems for account holders. It collects information such as;
- Negative account closing.
- Involuntary account closure.
- Bounced checks and overdrafts
- Account, card, or ATM abuse
- Fraud or identity theft
- Number of accounts applied for recently
When you apply for a new account, most banks and credit unions check your banking history from ChexSystems to determine whether to give you an account or not. Most banks give you second chance bank accounts once they realize that you had issues with your previous banks, while others deny you a bank account altogether.
A second chance bank account helps you to correct your mistakes and qualify for standard bank accounts. Furthermore, there are banks where you can open a free checking account with no credit check nor deposit instead of going for a second chance account.
The account usually charges high fees for various kinds of transactions. You may also need to deposit a large amount of an opening deposit. You can ask for a copy of your ChexSystems report to check on the wrong areas so you avoid repeating them in your current account. The following are ways you can get your report.
- Online through the Chexsystem’s website
- By calling 800-428-9623
- Faxing a request form to 602-659-2197
- Mailing a request to ChexSystems Inc., Attn: Consumer Relations, 7805 Hudson Road, Suite 100, Woodbury, MN 55125
When you request your report over the mail, it will take around five days to get it. However, calling the agency by phone is the fastest way to receive your report.
Once you get the report, you can embark on cleaning your poor banking history by paying any money you still owe your previous bank. After settling your issues with your previous bank, you can request your credit union, bank, or debt collection agency to update your banking history with the Chexsystem. If you think that the details were wrong, you can dispute with ChexSystems to have them rectified.
Sometimes someone can use your identification documents to open a bank account and misbehave. That is called identity theft. If you realize a case of identity theft, you can also dispute with the agency to have your name cleared.
How to use a checking account
Once you open a checking account, you will be able to perform various kinds of transactions. The following are the things you can do with a checking account online.
1) Send money
You can send money with a checking account number instantly to other account holders of your bank. In most cases, sending money to account holders of your bank is free. If there are charges, they are usually small. You can send money online when you log into your account or using your debit card at an ATM point.
When sending money to other bank accounts, you require only the account number of the recipient. However, when sending money to other accounts of different banks, you need both the account and routing numbers of the recipient.
2) Buy goods and services online.
You can buy goods and services online using your online checking account. Most merchants allow you to deposit money in their bank accounts via either direct deposit or ACH transfers. You can also utilize your debit card to purchase goods and services online or at physical stores.
3) Withdraw money
Checking accounts allow you to withdraw your funds when the need arises. You can withdraw money over the counter or use your ATM at an ATM point.
Is a checking account better than a savings account?
No bank account is worse than the other. A checking account is good, and so is a savings account. However, you need to know what you need before opening a bank account. If you need to save money for a future project, then a savings account will do. A checking account will hold money for your day-to-day expenditure.
A checking account refers to a kind of bank account that allows you to deposit money for your day-to-day expenditures. The accounts come with debit cards to assist you in your transactions. There are bank accounts with no account opening balance nor ChexSystems. You can use a bank account to send and receive money. Again, you can also use your account to pay for goods and services online.