A bank account is a special arrangement between a consumer and a bank to deposit and use money. Upon opening a bank account, you get an account number that distinguishes you from other account holders. When others want to send money to your bank account, they have to use the account number. You can open a bank account online or at a physical store. Today I will show you how to open a bank account online with no deposit.
When talking about a deposit, I mean the amount of money you put in your account to access it later. Most banks require you to have a certain amount of opening deposit to put in your account as soon as you open it.
Others allow you to open an account and deposit any amount of money later. Whichever the case, the two types of banks are okay since the money you deposit is still yours. However, when opening a bank account to receive some money, for example a salary, the one without a deposit is more suitable.
It is important to understand that opening a bank account is free with most banks. You do not have to pay any fees since the bank will still make money out of your account later. Furthermore, allowing people to open accounts for free keeps them at ease that they are not that costly.
Nowadays, it is easy to get a free online checking account. Most banks have gone digital and embrace the online account features that help ease commotions in banks as people look for services.
What are the requirements to open a bank account?
Before opening any bank account online, you need to understand what they require. Most banks require you to be at least 18 years old to open a bank account. Teens under 18 years old may get bank accounts but under adult guarantors who may be their parents or guardians.
Apart from hitting the right age, you also require the following things.
- Social Security Number(SSN)
- A phone number
- Email address
- Any identification document, which may be your government ID, passport, or driver’s license
- Physical address
Apart from the above, some banks require you not to appear in the ChexSystems. The agency lists people with lousy banking habits, such as writing bouncing checks, closing their accounts with negative balances, and performing frauds.
How to open a bank account online with no deposit
If you want to open a bank account online with no deposit, you must first decide whether you want a checking or a savings account.
Secondly, you need to do thorough research on the available banks that do not require opening deposits. All you need is to visit various banks’ websites and study their various bank accounts to see what they entail. By doing so, you will find numerous banks without any opening deposit. You will then be able to choose which one to open.
The next thing is to visit your bank of choice account application page and fill out all the needed information. You will enter details such as your full name, date of birth, ZIP code, State of residence, phone number, email address, and physical address. You may also need to enter the Social Security Number as well as your ID. Number.
Once you fill out your details, you then need to upload all the necessary documents for verification. Your bank will then send you a notification in your email address to tell you the way forward.
What are the factors to check when opening a bank account?
There are various factors to check on an account before opening one. You should not just be comfortable with accounts that have no opening deposits. Other factors to check before opening a bank account include the following.
i) Monthly maintenance fees
Some banks charge monthly fees when you open your account. Monthly fees are a way for your bank to make money from you. A bank with no monthly fees is economical, especially when opening a savings account.
ii) Inactivity fees
Some banks charge some fees if you become dormant for a particular duration then come back. Inactivity fees make account holders keep their accounts active and continue using their bank accounts without ceasing. Nobody likes paying fees for such careless mistakes. However, you may consider an account without inactivity fees.
iii) Annual fees
Some banks charge annual fees for their bank accounts. Annual fees are paid at the end of every year and are usually large amounts of money.
iv) Foreign transaction fees
Foreign transaction fees are the fees that banks charge you when making an international transaction. That includes sending money to friends and relatives abroad or paying for some goods and services online.
v) Minimum balance
Some banks need you to have a minimum balance on your account, while others require you to maintain whichever balance you want. Banks that require you to maintain a minimum balance are inconvenient, especially when you want to use all your money.
vi) Annual Percentage Yields (APYs)
Annual percentage yield (APY) refers to the interest you earn when you save money in your account. Even though the APYs are mainly for savings accounts, some checking accounts offer you some APY when you maintain a certain amount of balance in your account.
What are savings and checking accounts?
Savings and checking accounts are the main categories of bank accounts. Even though both types of bank accounts allow you to deposit and withdraw money from your account, they are a bit different.
A checking account helps you to deposit money that you can use in your everyday activities. Checking accounts allow one to access your money any time of the day. The accounts come with a debit card that allows you to withdraw money from ATMs and pay for goods and services online. Some online accounts give you virtual debit cards that help you to purchase goods and services online.
Savings accounts help you to set money aside that you can use for your plans. You should always keep money aside in your account to always have some funds for your plans. Most savings accounts do not have debit cards. If a savings account has a debit card, it usually comes with restrictions on how much you can withdraw from your account.
Bottom line
A bank account is a special arrangement between you and your bank to deposit and withdraw money. You can open a savings or checking account, or both depending on your preferences. You should be 18 years old to open a bank account independently. You also require other things such as a Social Security Number, an identification document, a phone number, email address, and a physical address.
Interesting related article: “What is Online Banking?”