Frequently asked questions for opening an online checking bank account
A checking account is a type of bank account that allows its users to deposit money for everyday transactions. The world is witnessing an exponential rise in the use of the Internet. Right from purchasing supplies to transacting your hard-earned money, everything can be done in just a few clicks. Online bank accounts take the advantage of this booming technology and provide transaction facilities from the comfort of your home. Read the following article to know more about opening online checking bank accounts.
What are the requirements for opening a new online checking bank account?
Following are the requirements for opening a checking bank account online:
- Personal information- This includes your social security number and tax ID number. You are also required to provide any government-issued ID, such as a driver’s license, a passport, and a U.S. military ID (if applicable) that clearly mentions the date of issue and expiration.
- Contact information– Applying for an online checking account will require contact information including home address, phone address, or an email address. The federal law requires you to provide a physical address even if you are operating your account virtually through the Internet.
- Funding amount– To transfer funds, you might require adding an initial deposit to your account. For that, you will have to use your credit or debit card. You can alternatively provide routing to your other account to create a link with another bank account for fund transfer.
Are users required to fill forms while opening an online checking bank account?
- Some banks require you to only fill the information mentioned in the previous queries to open an online checking bank. You might be required to sign legal agreements using an e-signature so that you can use your checking account almost immediately.
- Other banks provide you with “welcome kits” in the mail. This welcome kit will require you to provide documents that have your physical signature for verification when you write checks or enroll for debit card purchases.
What are the benefits of opening a checking bank account online?
- One of the most cited advantages of opening a new checking account is the relative convenience. Borrowers can access balances, set up monthly payments, and transfer funds with just a few clicks.
- To top this, some banks also offer mobile applications on the smartphone that allow you to operate your account anywhere. Additionally, some banks also offer their customers the option to deposit checks through the same app.
- The reward programs are yet another one of the rich features of opening an online checking bank account. Certain banks offer cash rewards on qualifying for debit card transactions.
- While most retail banks are closed on the weekends or holidays, online savings and checking accounts are always available to the account holders. These banks allow you to access accounts 24/7, and they facilitate you with customer services round the clock.
What is the difference between savings and checking account?
It is wise to know the difference between savings and checking account before you decide to open one. Following points differentiate savings account from a checking account:
- While a checking account usually does not have withdrawal restrictions, savings account typically allows 3-6 withdrawals per month.
- Checking accounts are designed for regular use, whereas, savings account to let you save money risk-free for short and long-term.
- You earn nominal or no interest in a checking account, while savings account lets you earn interest that varies widely, depending on the bank and the credit union.
- To make transactions even more convenient, traditional checking accounts usually come with the ability to make payments using debit cards, checkbooks, and even mobile apps. Savings account, on the other hand, are more suitable if you planning to save money for investment purposes. They do not provide the facility of check writing and debit cards.