4 Things To Know About Opening A Checking Account With An Online Bank

You no longer have to go to a brick-and-mortar bank in order to open a bank account. There are banks that operate completely online. Having an online-only bank account is very similar to a regular bank account, with a few key differences.

Direct Deposits Are Easy

With an online checking account, it is easy to set up direct deposit. Once direct deposit is set up, you can choose how you want the check to go into your account if you have more than one checking or savings account.

Deposit Checks with Your Phone

If you have a physical check that you need to deposit, you can do so with your phone. You will open the mobile application and take a picture of the front and back of the check. Remember to endorse the check before you take a picture of it.

With most online bank accounts, if you deposit the check before the end of their business day, you should have the funds in your account within twenty-four hours. When your account is brand-new, the hold on your check maybe a little longer.

Some online banks limit the types of checks you can deposit. For example, you may not be able to deposit a traveler's check, a loan check, or a check that someone endorsed and signed over to you.

Depositing Cash Is Tricky

Depositing cash is a little trickier. Some online banks allow you to deposit cash into network ATMs. Others allow you to deposit cash via a system where you go to stores that support loading money onto cards, such as pre-paid card networks, and pay a fee to deposit the money onto your card. Other banks allow you to mail in cash, and for others, you will need to convert that cash into a money order in order to deposit it into your bank account.

Link Together External Accounts

With some online banks, you can easily link your online bank account with other bank accounts. This makes it easier for you to transfer money between bank accounts you hold at various banks. For example, if you have a local physical bank account, you can link it to your online bank account and easily electronically transfer funds between the two accounts.

Online-only bank accounts are designed to function much like regular bank accounts. You can easily direct deposit your paycheck and deposit checks into your account. You can link together an external account with your online account. Depositing cash can be a little trickier, but overall, an online bank allows you access to a full banking experience.

To learn more, contact a resource that offers checking accounts.