Open Your Bank Account Online

Open Your Bank Account Online

Summary:

The internet has revolutionized the way we bank as more and more individuals make the shift to online banking. No longer do individuals need to drive to their local bank to make a deposit as online banking has become greener and more convenient than ever.

The Benefits Of Online Banking

One of the biggest benefits of online banking is the ease of which you can manage your bank accounts. You can view up to date statements online and have access to years worth of prior statements which make it easy to track and manage expenses. 

This is especially beneficial when tax time comes as all your statements are stored electronically by the bank and are just a click away, no more need to file away paper statements.

Online Checking Accounts

Online checking accounts offer some of the best benefits of online banking. You can now manage your checkbook online and send checks to pay bills with most bill pay services offered by online banks. 

The need for a physical checkbook is decreasing as more and more people are making the shift towards online bill pay and checking accounts. Online bank accounts also offer the benefit of keeping scanned copies of all cashed checks for your accounting purposes making it easy to determine if someone has received your payment.

Saving Accounts

Although interest rates are not relatively high at the moment, most online banks offer higher interest saving accounts as compared to local brick and motor banks. This is due to them having less overhead and the ability to focus mainly on passing those savings to customers via a higher interest rate.

It is probably in your best interest to compare the interest rate you are earning at your local bank with those offered by online saving accounts as they tend be higher. Some terms do apply such as a minimum balance but most online banks are very competitive with what your large institutional bank maybe offering.

Other Benefits Of Online Banking

There are many other benefits to online banking that most brick and mortar banks simple cannot offer, here are just a few of them:

  • Mobile banking – allows you to view up to the minute reports of your accounts. This includes alerts if your account balances are low or if a deposit has been made.
  • Most online banks offer the ability to deposit checks via a mobile phone instead of having to bring it to the local branch.
  • Security – online banking is becoming more secure every day. Setting up account alerts and security preferences can assure you that your accounts are safe.
  • Tax records – online banks offer yearly tax records so it easy to manage your taxes when tax time arrives.

How To Choose a Bank For Your Business ?

Choosing an online bank can be a little daunting at first, but like with anything it usually benefits you to do a little homework. 

10 Easy Steps For Helping You Choose An Online Bank:

Fdic insured – The number one thing you should is make sure the financial institution is fdic insured in order to protect your money in case the bank fails.  You can verify the online banks status by going to the fdic website and verifying that it is compliant.

Bank stability – The banks stability is another important factor to consider when choosing an online bank. Even if a bank is fdic insured, you don’t want to have the hassle of dealing with the bank failing. 

It is important to find out how long the bank has been in business and their financial rating. If the bank is publicly traded its stock price and financial reports can be another determining factor.

ATM networks and fees – An important factor to consider is whether the online bank has a network of atms for its customers to use free of charge. If they don’t you will want to research whether or not the bank will reimburse customers for atm withdrawals.  

These charge can range up to $5 per withdrawal so this is definitely a hidden fee customers should look out for.

Security – Security is important whenever you are doing your banking online. The bank should have strong standards for passwords and have backup authentication in case you ever lose access to your account or someone else tries to access it without your knowledge. 
You can setup alerts for whenever transactions are made over a certain limit or when someone logs on from outside your geographical region. A little preventative security could help protect you from identity fraud down the road.

Customer service – Research what options you have when it comes to contacting a customer support agent with the online bank. Since you don’t have the option of walking into a local branch and talking to someone face to face.
 You want to make sure it is easy for you to reach a banking representative for any upcoming needs or concerns you may have. E-mail, phone, and live chat support with 24/7 support will ensure that you can reach your bank in case an emergency arises.

Checkbooks – One thing you may want to consider with online banks is whether you will need a physical checkbooks. Not all online banks offer free checkbooks, so if this is something that you will require it is important to review the online banks terms regarding this. 
If you make regular payments that require a physical checkbook, you probably want to choose an online bank that offers this service.

Check deposits – If you get paid with a physical check you may want to double check how your online bank handles such deposits. A lot of online banks now offer you the ability for customers take a picture of a check with their smartphone or home scanner and send it to the bank to be deposited. 
This is much quicker than having to physically forward or mail your check to the online bank for deposit.

Interest rates –  Most online banks have relatively low overhead compared to brick and motor banks, because of this they usually offer higher interest rates on deposits. Compare online banks interest rates and terms such as minimum balances in order to obtain the higher rate.

Additional services – Do you require online bill pay services? Do you need the ability to make person to person payments online? Is having the ability to access your account via mobile phone important? 

You want to make sure that any additional services you require are offered by the online bank and review any terms or fees that may go along with these additional services.

Other products – Does the bank offer certificates of deposit? Do they offer money market or savings accounts? How about credit cards or lines of credit?

 Most online banks do not offer as wide an array of services as traditional banks as a way of keeping their overhead down. so you want to make sure if you require any of these additional banking related products that the online bank you choose offers them.

Can I Open a Bank Account With Bad Credit History?

There are a lot of people who can’t get bank accounts because of their past credit history. The high street banks are very particular about who they give a bank account to nowadays. 

People get refused bank accounts because of there credit score, now this could be down to some thing as simple as a late payment on a finance agreement, and it makes no difference even if you have paid the payment, things like this stay on your credit report for years.

Most of us need a bank account, they are essential for our every day financial business, like getting are salary’s paid into and paying bills, without a bank account life can be a little awkward.

So how do people in this situation get a bank account, there are a couple of options for people who have a bad credit score.

The first is to use a credit repair service.

 

How this works. Is the credit repair company searches your credit file, and amends any old or out of date entry’s and removes them, so your credit file is clear and you can proceed with any credit applications you wish : IE bank accounts, credit cards …ect.

But there are limits to what they can remove, mortgage defaults and bankruptcy files normally can’t be removed, but you wont know that until you pay the credit repair company there fee.

If you have ever been bankrupt you will find it hard to get any type of credit or bank account, lenders don’t want to touch people who have been bankrupt.

The other option is to use the services of a company who specialise in bank accounts for people who have been bankrupt or have a poor credit score.

Bank Account Number 

There are times when you may need to provide your bank account number and routing number to another party. This information can be used to make purchases online, as well as to pay bills. 

Submitting this information will allow the company to use these numbers to initiate an automatic draft. This is similar to writing a check, but without the hassle of filling out and physically mailing the check itself.

Where Can i Find My Bank Account Number And Routing Number?

The easiest way to locate this information is to look on current checks that you already have. There will be three sets of numbers listed along the bottom. These are the routing number, bank account number, and check number. the routing number always comes first, and always consists of nine numbers.

The bank account number will be second, followed by the check number. Each set of numbers will be separated by a symbol, which makes it easy to tell them apart.

Each of these sets of numbers serves a specific purpose. The routing number is used to determine your exact bank company and location. Everyone that uses that specific bank will have the same routing number. 

The bank account number is linked specifically to your account. Every bank customer will have a different bank account number. The check number is simply used to issue and track specific payments.

It is important to note that the account and routing numbers that are deposit slips may not match the numbers that are on your checks. For this reason, never refer to a deposit slip when searching for this information. Should you not use  checks, call or visit your local bank to obtain this information. 

You will need to verify your identity in order to receive this information which is done for security purposes. Those that use online banking should also be able to obtain this nformation by logging into their account.

Savings accounts that are with the same bank will have the same routing number. However the bank account number will be completely different. should you wish to allow deposits or debits from your savings account, be sure to use this bank  account number instead.

Since a savings account number is not located on your checks, a visit or call to the bank may be necessary in order to obtain this information.

Your Bank Account Number And Routing Number

Are not only used to make payments. They are also needed in order to receive money. Setting up direct deposit with your employer will require that you provide this information. Entrepreneurs may also need to provide this information in order to initiate direct deposits from businesses that will be providing them with payments.

These numbers are in place to provide you with additional layers of account security. Therefore, it is important that your bank account number only be provided to those that you deem reputable. 

This information can be used for the purpose of identity theft. keep this in mind before giving this information out. When entering the information online, check to see if the website has security measures such as encryption in place.

Account Number on Check

where can i find my bank account number

Nowadays it is common to find people using online banking and other online mode of payment like paypal. Sometimes it becomes a problem not knowing what the bank account number is. Keeping track of your bank account number is very important.

It is one of the vital information for you to receive money from others through your bank account. If you are going to apply for other online mode of payment generally, the bank account number will be needed. 

So What Should Be Done In Order To Find Out What The Number Is? 

One of the places to check will be your checks. Your checkbook should have the details of your bank account number. It is common to see three different numbers on a check. These three numbers are the bank routing number, bank account number and the check number.

The bank routing number is usually the first set of numbers that can be seen on a check. It usually begins with a line and a colon. The bank account number usually has three zeroes at the beginning and it is twelve-digit. 

The check number is the shortest amongst the numbers. It is usually made up of four digits only and usually it is mentioned last in a check.

If you do not have checkbooks then you can check your bank statement. There are bank accounts that do not require the need for checkbooks or checks. 

If you run into this problem check your monthly account statement and you will be able to find your bank account number. One possible problem here is when you have selected the option of not receiving a monthly bank statement.

The last choice in finding about the bank account number is to call or visit your bank. The bank, as a general rule, will require a type of identification to make sure you are the owner of the account.

How To Close a Bank Account

Banks are seemingly always changing their policies and, when your bank makes a change you just can’t live with, your first instinct might be to close your accountand move to another bank with policies that are more in line with your way of life. Before you react this way, you should consider that closing a bank account has broader implications than many people realize.

Closing a long standing bank account can affect your credit worthiness, leading to increased interest rates, closure of existing credit accounts, and refusal to open further credit accounts. 

While your investment and transaction accounts may not appear on your credit report, it is important to keep in mind that banks make credit decisions based on their past and current relationship with you, in addition to your credit report.

Closing a well-aged account, or letting a balance drop or become negative may prompt them to re-evaluate any lines of credit they may currently be extending to you. 

The end result could be anything from a reduced credit limit, to an increased interest rate, or even closing the credit account altogether, which may incur additional fees.

Closing A High-Balance Account 

Can place undue strain on the branch where you are closing the account, making it difficult or impossible for them to fund withdrawals for their other customers, money those other customers may need in order to pay bills or feed their families. 

Banks plan very carefully to have enough cash on hand for the day’s withdrawals, while minimizing cash on hand in order to reduce the likelihood of a robbery.

When you close a large account without notice, you are making a withdrawal the branch could not have possibly planned for. The end result of this is that the branch doesn’t have enough cash on hand to cover transactions for other customers, forcing those customers to go without whatever they needed that money for.

Closing your account as part of an organized protest, or bank run, can place the entire banking system in crisis, delaying people’s ability to pay their bills and feed their familes while the bank fails and is either acquired by another bank or has its accounts covered by the fdic

It can take weeks for a bank to be declared as failed, and the fdic won’t pay out until this occurs, as it must wait to see whether the bank will recover or be absorbed by another bank.
If the bank does fail, it can take anywhere from a few days to a few months to cover the bank’s deposits entirely.