Having a checking account provides ease when managing personal finances, especially when you have many responsibilities. While a savings account provides a safe place to keep the money for a long period, a checking account makes it more convenient to issue checks to make payments and other transactions.
With the rise of technology, people can now enjoy an online checking account—a more convenient type of banking to track money. Online banking isn’t a foreign concept; in fact, more and more people choose digital channels to make transactions.
In case you’re new to an online checking account and wondering how it works, here’s a guide for you. We’re outlining the perks, benefits, and features of an online checking account. Read on to know more about this type of account.
Easy Finance Management
First off, savings and checking accounts are different in the things you can do. For instance, in a savings account, you can earn interest for keeping money in your account. In addition to depositing money, you can also manage finances, make transfers, and pay using the online banking channel.
Meanwhile, for an online checking account, you have the ability to deposit checks with your phone, get instant information about your balance, and more. Besides, you can also track down checks without heading to the bank.
Tracking your finances via mobile app, you’re also securing your account from fraudulent activities. Online checking accounts allow you to set up notifications and alerts for unusual movements.
Automation is another story, with account holders using the online channel to pay bills on time and set up automatic transfers. These features help you to make transactions with a few taps on your smartphone and never leaving home.
Many people don’t know the perks and rewards you can get with an online checking account. Depending on the type of account, you can get cashback when using the debit card for purchases. While there are limitations, at least, you can get a fraction of the money spent using the card.
When opening an online checking account, make sure to check the rewards structure to get as many rewards as possible. In addition to this, some banks also charge fewer or lower fees compared to checking account with a traditional bank.
For instance, regular checking accounts require a minimum balance requirement to open an account. With some online merchants, you don’t get any minimum balance to open an online checking account.
How Do Online Checking Accounts Work?
When opening a new account, you need to deposit money by transferring it from your current bank or check card. Some merchants and banks require minimum initial deposits, so make sure to check this information when applying.
Even though depositing a check applies to online checking accounts, the process is quite long because of the lack of physical location or ATMs. The only option is to mail checks to the central depository.
Luckily, some banks offer mobile deposits, wherein account holders use the app to snap a photo of the check to deposit. The bank then deposits the funds on your behalf, but there’s a delay for a day or two.
Online banks also issue paper checks and send them to your doorstep. Others allow you to fill out your check online and mail the paper check to the payee for you.
Having an online checking account is both convenient and secure. If you want to transfer money easily and issue checks using your smartphone, make sure to sign up for a checking account online to enjoy this benefit.