4 FAQs when opening an online checking account
Checking accounts are the kind of bank accounts through which you can easily access your cash. It can be done using a debit card to withdraw, write checks, or make payments. Online checking accounts work on the same premise, the only difference being that online checking accounts offer services and transactions 24/7 as customers can access their accounts conveniently through the Internet. You can also access your certificate of deposit (CD) account or individual retirement account (IRA) with just a few clicks. Let us get to know more about what checking accounts have to offer:
What are the advantages of opening an online checking account?
- Online free checking accounts have a fewer fees than traditional accounts – Online free checking accounts are gaining popularity in the recent times. This is because they have fewer fees and some virtual banks reimburse you for ATM fees nationally. They offer no minimum deposit amounts.
- Nationwide comparison shopping – Online checking bank accounts widens your banking network. Most of these accounts have high rates and offer a high yield.
- Abundant personal finance tools – There are online bank accounts that offer functionality which helps in offering complex functionality that helps in connecting and spending budgets. Some online checking accounts also offer track savings and net worth.
What are the drawbacks of opening an online checking account?
- Security concerns – Online banks claim that they offer high security on transactions. There are cyberthieves that target bank accounts with weak security credentials. They use malware that infects the web browsers and compromise a bank customer’s login details and passwords. Make sure that the banks use effective password protection systems and have an encrypted data to prevent any cyber thefts.
- It is harder to answer queries and resolve banking issues – Personal banking have a face-to-face communication which makes it easier to resolve problems and answer questions. In online banking, getting good banking service as late as 2 a.m. can be difficult; moreover, the website might dock you to their call center service that will try to resolve with traditional solutions.
What are the things should I know before opening a checking account?
- Checking accounts typically come with personal checks. Just like any other bank accounts, they offer debit and ATM cards to help access your cash in the account.
- Online free checking accounts enable you to access your accounts as many times as you want. This makes them ideal for daily transactions and spending. However, the banks may have a limit on daily and monthly ATM withdrawals. So, when you are opening an online free checking account, make sure that your spending habits are aligned with the caps defined by the bank.
- Checking accounts, personal or online, are not known for their interest payments on the cash that you store in the bank. There are checking accounts that offer interest rates of 1 percent.
- Some of the popular national banks incur a maintenance fee as high as 15 dollars a month. This helps the banks to maintain thousands of their branch offices. It can be costly for the customers who cannot meet the bank’s fee-waiver requirements.
- It is better to open an online checking account if you are not willing to pay a monthly maintenance fee as they offer free checking accounts and do not charge any overdraft fees.
How to find the right online free checking account?
- The first thing you should keep in mind is the sign-up bonuses that checking accounts offer when you sign up online for the first time.
- Look for online free checking accounts that offer rewards that include benefits such as above-market interest rates and fee refunds. Many banks offer free online checking accounts that could help you earn rewards.
- Teen checking accounts help the youth in managing their personal finances at an early age. These accounts require a parent or a guardian to be the co-signer.