Online bank accounts are growing in popularity. This is due to their convenience. An online account can be accessed at any time, from anywhere, making it easy to check balances, make transfers, or pay bills. SoFi is a knowledgeable all-in-one investing app, and according to the experts at SoFi, “An online bank account conveniently allows you to manage your accounts from your computer or mobile device.” It is easy to open a bank account online, and the process is straightforward.
1. Choose the Best Account
Online banking provides one with savings and checking accounts, just like traditional brick-and-mortar banks do. Before deciding which type of account to open, one needs to consider their financial needs and how they intend to use their new account. If the individual wants a way to pay bills, a checking account is ideal, while a saving account is perfect for anyone that wants a safe place to keep their money while saving. Regardless of which type of bank account one is opening, they need to carefully consider all fees and interest rates being offered from a variety of online banks before making a final decision. These accounts can be opened as single or joint accounts, depending on the individual’s needs.
2. Submit an Online Application
The online application is used by the bank to verify one’s identity. The process can be quick and easy if the applicant is prepared with all of their personal information and documents before beginning. This includes one’s address and birthdate, along with their social security number. They will also ask for a driver’s license or government ID. These documents can be submitted by taking a photo, faxing, or emailing the information. The bank can require a bill with their address on it as proof of residency, and if one wants to be able to transfer funds to and from an existing bank account, they will need the account number and routing number for this as well.
3. Funding a New Account
Once they open a bank account online, one needs to fund it. This can be done by linking the new account to an existing bank account, and then the funds can easily be transferred. A digital deposit is another way to fund the new account. This is done by uploading a photo of a check. Digital wallets like PayPal are another great way to add funds. When deciding how much to deposit, one needs to make sure they fully understand all of the minimum requirements. Online banks often waive fees if there is a minimum average balance being maintained.
There are many reasons to consider an online bank account in addition to the convenience. Online bank accounts often provide one with higher APYs as well as lower monthly fees. Many times, there are no fees at all if minimum balances are maintained. Following these three steps allows one to easily begin enjoying all of these features from their own mobile device or home computer now.