Would you like to open a bank account online free without paying a penny? Worry not because the process is not only possible but also straightforward. Unlike before where you had to visit the bank physically for you open an account, you can now do this from the comfort of your home. In today’s fast-paced world, processes like this usually take about 10 minutes.
Once you open a bank account online, you will be able to save money, enjoy credit services, pay bills online, and so much more. Since you will have the luxury of accessing this bank online, you will enjoy a lot of conveniences. In this article, we shall discuss the various steps that you should follow when opening a bank online, among other facets.
What Information Do You Need Before Opening a Bank Account Online for Free?
Like we have mentioned above, you can now open a bank account for free and enjoy all the convenience that comes with it. However, for you to do this, one has to provide vital details for identity purposes.
Some of the details that you should submit include:
- Your official name
- Mobile contacts
- Your Social Security Number
- Government-issued ID or a valid driver’s license
- Debit card information in case the account needs you to make an initial deposit. Here, you might also be required to submit your account and routing number for the other bank account you have out there. If you want to determine these details, you can check these details once you log in to your bank account online.
- Your email address
Always remember to countercheck this information to avoid submitting the wrong details. Remember that using the wrong details might compromise the identity of your account and make you lose money. Therefore, take time and gather the correct formation before submission.
How to Open a Bank Account Online Free – Step by Step Guide
Since we have already looked at the various details you should have when opening a bank account online, the time is ripe for you to know how to undertake this process step by step. Here are the steps that you should follow:
1. Choose The Bank You Want
To start with, you will note that there are many banks out there. Some of them usually have friendly terms while others have strict terms. It is upon you to choose the one that suits your needs. You can even ask for a recommendation from your friends so that you can know the right bank to choose. Besides this, you can visit the websites of these banks and check reviews from different customers. This way, you will be able to make a good choice.
2. Choose The Bank Account You Want
One of the fundamental steps to consider when opening a bank account online is the type of account you will actually open. When determining the account type that you are going to open, several factors have to be considered. A good example is the banking fee. Typically, your bank account should not have expensive monthly maintenance fees. In fact, you can check around and choose the one that charges the least amount as far as maintenance fees are concerned. This way, you will be able to save more money.
Besides the maintenance fees, you should be keen to check the ATM fees and investment fees. All these fees should be at the bare minimum so that you can save more. Also, your bank account of choice should allow you to get higher yields on all your cash savings. This way, your money will earn interest over time. In fact, the longer your money remains in that bank account, the more interest it earns. Also, your bank account of choice should allow you to make more transactions in a day. As a result, you will enjoy more convenience, especially if you are a businessperson.
Finally, it is important that you determine if you want a single or a joint bank account. If you open a single account, you will be the only person who will have access to that account. However, if you choose a joint bank account, both you and the other partner will share the ownership of that account. Generally, you will have equal access to that account. All these factors will help you choose the right bank account to open online.
3. Visit Your Bank’s Website
Once you have chosen the right bank account, the next step is to visit your bank’s website. If you have a computer or a laptop, you can go to your browser and enter the URL of your bank. Oncethe website opens, you will see several options including, where you need to open a bank account. Click that option and then proceed to the next step.
4. Provide Your Information
Like we mentioned above, you need to submit your personal information when opening a bank account online. Some of the details that you ought to submit include:
- Your name
- Your Social Security Number
- Date of Birth
- Government Issued ID
- Your email address
- Joint account holder information. This is very important if you are opening a joint bank account. Here, you need to provide the details of the person who is attached to the account.
- Your contact information, such as the phone number and next of kin.
It is important that you have this information at hand before making this application, as the webpage can time out and even close before you are done. Basically, you should not take too long when filling in these details.
5. Verify Your Identity
Once you fill in the details mentioned above, you will be required to verify that indeed you are legit. In most cases, an email comes a few minutes after submitting the application. The email might come with several instructions that will guide you on how to verify your identity.
For most banks, they might need you to take a picture of your ID with your mobile phone. Others might need to verify your identity in person. All these requirements differ from bank to bank.
6. Accept The Terms and Conditions of The Bank Account
Once you have verified your identity, time is ripe for you to accept the term and conditions of the bank account. Before accepting these terms and conditions, you should read through and see what is expected of you. If you are uncertain about these terms, you can contact the customer care team to explain a few things to you. To prevent future problems, you should ask all the questions you might have about the bank account. Once everything is clear to you, go ahead and accept the terms and conditions.
7. Make a Deposit
After accepting the terms and conditions of your bank account, you can go ahead and deposit some money in your bank account. The good news is that you can do this by transferring money from a different bank account to the new bank account. Such is applicable if you already have a bank account elsewhere. If you do not have another bank account, you can reach out to a friend or relative and request him or her to fund your account. However, if you intend to depot money in cash, you might have to walk to your nearest bank branch and perform these transactions.
8. Set Up Your Online Banking Profile
Currently, online banking has become very popular. This is the reason why you need to set up your online banking profile. This way, you will be able to send and receive money online from the comfort of your home. In fact, some banks have apps where you can sign in to your account and perform several transactions. If you do not have this banking app already, you should download it and then set up your profile. By doing this, you will be able to perform online transactions seamlessly.
If your bank account includes a debit card, it will arrive in your mail once the account has been approved. For more information, you can check the confirmation email and see how long it will take to reach you. Remember that the debit card and the PIN will come separately due to security reasons. Once you obtain the card, you need to sign the back and then activate it. After, you can make withdrawals anytime you please.
Do You Want A Checking or Savings Account?
When making your application, it is essential that you determine if you want a checking or savings account. Most people prefer checking accounts because you can do a number of financial activities. From paying bills to making purchases, there are many activities that you can do with this account.
If you want to open a checking account online, choose an account that is easy to open. Besides this, it should have no monthly maintenance fees. Lastly, you should be able to access your funds anytime you please. If your checking bank account has the Direct Deposit Express feature, you will be able to enjoy more convenience as it allows you to access money 2 days earlier than other banks.
On the other hand, if you want to save money, opening a savings account online is the best option for you. Here, you will be able to keep the money for emergencies and other special projects. However, your savings account of choice should have a good interest rate. Besides this, it should have a low opening deposit. With a good interest rate and a low opening deposit, you will get good returns in the long run. Finally, the savings account should have no monthly maintenance fees.
What Other Information Do You Need to Open a Bank Account?
Besides the information that we have mentioned above, other details that are needed when opening a bank account include:
- Your physical address
- Proof of address such as a utility bill that bears your name
- Your electronic signature.
- Details of the co-owner. Such applies if you are below 18.In this case, you should provide details of your parent or legal guardian
Best Bank For Open A Free Online Account
As we speak, there is an array of banks where you can open an online account for free. These banks usually charge different monthly maintenance fees, different interest rates, and so on. All you need to do is choose the one with friendly rates so that you can get value for money in the long run. Here are some of the online banks that will not disappoint you:
1. Chime Bank
Unlike other banks, this bank has over 38000 ATM outlets out there. Therefore, you will have an easy time accessing your money any time you want. However, if you choose to use out-of-network ATM, you will be charged $2.50 for every transaction you make. It is important to note that customers here have to visit a Green Dot location to deposit their cash. As you prepare to do so, bear in mind that you might incur some charges.
For convenience purposes, Chime bank allows its customers to receive their payment two days earlier through direct deposit. Finally, you can enjoy mobile banking by just downloading the Chime app on your device. With this app, you will be able to perform several transactions from the comfort of your home.
2. Ally Bank
Besides Chime bank, you can now open an online account with Ally Bank and enjoy all the benefits of online banking. To start with, this bank does not charge any monthly maintenance fees. Also, you will not be charged any ATM fees when withdrawing your money. To open an online checking account, you will not be required to make any minimum deposit.
When it comes to convenience, this bank does not disappoint as it has more than 43000 ATMs out there. This way, you will be able to access your money any time you please. Finally, the bank has a 24/7 customer support team that is always ready to listen to your queries.
3. NBKC Bank
Most people are always looking for that online bank that charges a small monthly maintenance fee. The good news is that this bank keeps these fees at the bare minimum. Besides this, you will not incur any extra charges for any bounced payments.
Unlike other banks, you will not incur any overdraft fees or wire transfer fees. This way, you will be able to save more with this bank. Finally, the bank has over 32000 ATMs nationwide. This will enable you to enjoy convenience whenever you want to access your hard-earned money.
4. Discover Bank
To start with, you will not be required to deposit any specific amount of money as an initial deposit when opening a bank account. In addition, you will not be required to pay any monthly maintenance fees once you open an online bank account. Generally, the fees here are usually kept at the bare minimum.
Whether you want your official bank checks to be processed or your debit card replaced, you can be sure that you will not incur any extra charges. Unlike other banks, Discover Bank offers 1% cash back for all the purchases you make. However, these purchases have to be below $3000 per month. In fact, if you can maximize on your rewards, you will readily earn up to $360 annually.
It is imperative to note that this bank has over 60000 ATMs nationwide. Also, it has a banking app that allows you to make transactions from the comfort of your home. Lastly, the bank has a customer support team that is always ready to serve you 24/7.
5. TAB Bank
The bank mentioned above allows you to earn 1% for all the purchases you make, besides this, you will get a refund of up to $15 for the fees you incur when using the ATM. However, for you to be eligible for these rewards, you have to make at least 15 transactions per month. Each of these transactions should be $5 and above. Besides these transactions, you must make at least one direct deposit. Finally, the bank has a banking app that allows you to manage your account from the comfort of your home.
6. Capital One
If you are looking for a bank that allows your money to earn more interest, look no further, as Capital one is the best option for you. Here, the money in your savings account will be able to earn more interest. When it comes to checking accounts, you will not incur any monthly maintenance fees. Also, you will not be required to make an initial deposit when opening an account.
Unlike other banks, you can open an online bank account for your son or daughter here. This way, they will be able to manage their finances even at a tender age. In fact, children who are as young as 8 years can open a checking account and get a debit card. However, this account will be managed by an adult until the child reaches the age of maturity.
How Can You Fund Your Account?
As we speak, there are many ways that can help you fund your account. To start with, you can use a reloadable prepaid debit card to deposit money to your account. All you need to do is to link the card to your account and then deposit money to your account anytime you please. Besides this, you can transfer money from your traditional bank to your online bank account. As long as you have the traditional bank’s ATM, you will be able to transfer money electronically within minutes.
You can also buy a money order and then fill it with the correct details. After that, mail it to your bank. If your bank has a mobile banking app, you can take a photo of the money order and then deposit it that way. However, if you choose this method, you should be sure that your online bank allows customers to deposit money using money orders.
Finally, you can deposit cash at your nearest cash-accepting ATM. This way, you will be able to fund your account within minutes.
The convenience that comes with online bank accounts is unmatched. By opening this bank account, you will be able to make transactions from the comfort of your home. Besides this, you will have access to your account 24/7. Online banks also eliminate delays in queuing in the bank to withdraw some cash. Another advantage is that in case there is fraud, you will receive alerts immediately on your mobile device. The good news is that opening a bank account online is easy and fast. All you need to do is to follow the steps mentioned above, and everything will be successful. Follow the ideas mentioned above and you will enjoy the results.