Keeping money in the bank is much safer than storing it in a box or mattress. This is because you can always access your money whenever you need it without being limited by distance. The other advantage is that the money continues to earn a considerable interest while it’s in the bank’s custody as opposed to being hidden in your walls. Technology has also made it easier to open a bank account. If you have access to the internet, you can open an account without having to queue in a brick and mortar banking hall. The only difference is that you will do everything including verifying your identity and filling the forms over the internet. Here are tips that can guide you when opening an online account for first time.
- Determine the Type of Account that You Want
The first thing to do when looking to open an account on the internet is to identify a type of account that is ideal for you. If you are a business person, it’s recommended you find a bank for checking account. Such an account offers you with a checkbook that you can use when paying vendors and suppliers. Keep in mind that carrying lots of cash money attracts the attention of thugs and other criminals. However, checking account holders are required to pay a monthly fee. The advantage of having a checking account is that you are not required to maintain a minimum balance. With a savings account, you will not pay a monthly fee but you will have to ensure that your balance doesn’t go beyond a certain figure.
- Compare Services of Different Banks
It’s important you compare the products that are offered by various banks. You can actually visit their individual websites. The worst mistake you can make is to open an account in the first bank that you find. You should also check comparison sites so that you can know what other people feel about the bank you want to partner with. By visiting these comparison sites, you will be able to see how customers rate the quality of customer care and different financial products. Ideally, you should pick a bank that has your best interests at heart.
- Fill Application Forms
Opening an online account is very convenient. This is due to the fact that you don’t have to travel. When you visit the online portal of the bank that you have chosen, you will need to fill the forms that are provided to account applicants. Before you start filling the forms, you should ensure that you have a scanned copy of your identity card, passport or driving license and your social security number because they will be required when verifying your identity. Some banks require you to sign the forms before submitting them. If that’s the case, you should print the forms, sign as indicated and send them via email or upload them on the bank’s website.
- Read Terms and Conditions
This is the most commonly overlooked part. Even if you are in a hurry, you should take time to go through the terms and conditions page. Although the content of such a page tend to be long, it’s important you read between the lines. This will help you in understanding what you are getting yourself into. Remember, the terms and conditions are very binding. They actually explain what you should do or not do. Once you have read them all, you should click the agree button for your account to be activated. If you don’t click the agree button, the bank will assume that you are not ready to comply with its terms and conditions and will therefore decline your request.
- Deposit Money into the Account
Once your account is up and running, you will receive a confirmation email or a text message. You can now fund your account. There are several ways of depositing money into your account. You can transfer money electronically from a different bank or deposit money directly. The advantage of direct deposit is that you can start spending it right away via credit cards. Alternatively, you can deposit a check. However, the funds will take several days to reflect in the account. This is because checks don’t mature in one day. If you are on payroll, you can request your employer to be depositing salary directly into your online account. All you will have to do is subscribe for email and text message alerts.