Here is everything you need to know about opening an online bank account

Having a bank account is important for more than one reason. From carrying out transactions to maintaining a stable financial base, a bank account makes the process easier. However, the thought of opening a bank account can make you cringe.

Making several trips to the bank with all the right documents can cause trouble. However, like with every other thing, opening a bank account has become effortless with time. Today, banks offer a service that allows one to open an online bank account. While this is a relatively new option, it is being adapted widely for the convenience it brings.

Opening an online bank account eliminates long queues and the effort of going to the bank. You can complete the process within the confines of your home and at any time of the day.

If you are looking open an online bank account, here are few things that you should understand.

Which bank should you open an online bank account with?

• Consider several banks and clearly understand the terms and policies before opting for the most suitable one.
• Ask trusted friends and relatives who can give you good feedback about the institutions that they bank with.
• Inquire about the service charges and fees that you will have pay. Also, ways to avoid these payments.
• Ensure that your bank has ATMs around your area and offers good customer service when you need assistance.
• Preferably opt for nationalized or reputed banks that you can trust.

Decide on what type of account you need?

• The type of bank account you choose, depends on the transactions you require to make in the future.
• Open a checking account if you want an account through which you can pay your utility bills, for daily expenditure, etc. These accounts bring with them ATM access and no monthly fees.
• If you want to save up for an emergency fund or a future goal, you should choose a savings account. The interest rates on these accounts are higher.

What are requirements when opening an online bank account?

• It does not matter whether you open an online bank account or one in person, the information required to begin the process remains the same.
• You must be at least 18 years of age before you can open a bank account.
• You need to provide the bank with identification. This can be any government-issued identity such as a driver’s license or passport.
• It may be essential to provide your social security number to a few banks. In case you are wary of doing the same online, you may have allowed to provide other numbers such as a Taxpayer identification number.
• You will have to fill a personal details form. This will include basic information such as address, date of birth, email address and phone number.
• An initial deposit may be asked of you to open the account. This transaction can be done through a check, debit or credit card.

When is a bank likely to turn down your request to open an online bank account?

• In case a bank is unable to verify the information provided by you, there is a high possibility of your application being denied. This is because there are several cases of identity thieves who steal who create accounts by using someone else’s data. Thus, ensure that you fill in the accurate information.
• In case you are defaulter at another bank or have mismanaged an account previously, you may be at the risk having your application denied.
• Many banks may consider your credit score. After you put an online application, a bank can pull out your credit score. If your credit score is too low, you may be denied.