Essential Questions to Consider Before Choosing an Online Checking Account

Discover essential questions to ask before opening an online checking account. Learn how to choose the best digital bank, understand potential challenges, and explore top options in 2018. Make informed decisions for hassle-free banking from home.

Key considerations before opening an online checking account

Are frequent trips to the bank branch becoming inconvenient for accessing your checking or savings accounts? Many individuals now prefer managing their finances from home through online banking. Digital checking and savings accounts simplify transactions and provide quick access with just a few clicks. However, it's important to evaluate certain factors before selecting an online account. The following questions and answers will guide you in choosing the most suitable, hassle-free bank account tailored to your needs.

How to choose the right online checking account?

Consider these factors for selecting a dependable online checking or savings account:

Interest rates and rewards – Seek banks offering high interest returns and reward programs for each transaction, benefiting from lower operational costs without physical branches.

Fees involved – Opt for banks that charge minimal or no fees for account maintenance, overdrafts, ATMs, or wire transfers.

FDIC coverage – Ensure the bank is insured by the Federal Deposit Insurance Corporation, guaranteeing your deposits are protected up to the insured limits.

Additionally, look for banks that facilitate easy deposits through mobile check scanning or quick transfer options, enhancing your banking convenience.

Top online checking accounts of 2018

Consider opening accounts with these reputable banks:

Ally Bank – Known for competitive interest rates, a user-friendly mobile experience, and ATM fee reimbursements of up to $10 monthly for out-of-network ATMs.

Discover Bank – Famous for cashback offers on online purchases and debit transactions, earning up to 1% cashback on qualifying monthly spendings, totaling potential rewards of $360 annually.

Capital One 360 – Offers no monthly maintenance fees, no minimum balance requirements, and access to over 39,000 fee-free ATMs nationwide.

Challenges when opening online checking accounts

Some situations may still necessitate visiting a branch, such as:

Age restrictions – Minors under 18 usually need an adult present to open an account in person.

Credit history – Limited or no credit history may require in-branch verification with official ID.

Residency status – Permanent residents might need to verify documents in person; citizens generally do not.

Business or entity accounts – Opening business, trust, or other specialized accounts often requires in-person visits, even if personal accounts are digital.

Drawbacks of online account opening

While convenient, online banking has some disadvantages:

Security concerns – Large transactions online pose risks like identity theft or data breaches, requiring vigilance to safeguard personal information.

Technical issues – System outages or slow internet can hinder access during urgent situations.

Deposit inconveniences – Physical deposits may still require branch visits, despite mobile check deposit apps, which can be limiting if remote deposits are essential.