If a bank allows you to open a bank account online with no money, it means that there is no need to deposit any amount of money. You can have the account and load it with money another day. Such accounts are useful when you want to receive money from someone else or when you want to receive payments from another party. We all know that banks are the most secure avenues to receive payments.
Most bank accounts that do not require a deposit when opening are the checking accounts. Savings accounts require you to make a minimum deposit in most cases. Money in a checking account is for immediate uses whereby you can deposit or withdraw money at any time of the day. A checking account allows you to write checks and also use debit cards. A checking account can earn interest but not as much as it is with savings accounts.
You can open a bank account online or at a physical branch. It is possible to open a bank account online with no deposit. This requires you to do thorough research on which bank has a free online account with no deposit. Numerous banks can allow you to open accounts with no deposit. However, you should check other features such as interest rates, maintenance fees, annual rates, and even transaction costs.
How to open a bank account online with no money
Opening a bank account is not a hard thing although it requires informed decisions to avoid embarrassments that may arise when you open the wrong type of account. Your decision on the bank account to open should be based on the following factors.
1) The type of account
There are two main types of accounts. We have the checking account and the savings account. If you want to keep the money for your daily needs, you better consider a checking account. It allows you to withdraw money whenever in need. On the other hand, a savings account will help you save money for future use and at the same time earn interest.
A checking or saving account may be personal, for your business or an organization. If you open a free business checking account online with no deposit, you will be able to receive payments and also buy the necessary items. A bank account for your business will help you manage your business finances effectively.
2) Best bank to open an account with
Choose the best bank with favorable terms. You can browse through various websites belonging to various banks and see how their accounts work. Things to check include interest rates, maximum withdrawal per given time, fees, and rewards. Ensure that the bank does not require you to deposit money in your account when opening.
Once you have identified the best bank and the account to open, you can then check their requirements and avail them. Before opening a bank account, banks require you to have a Social Security Number, Identification documents such as Government ID, passport or a birth certificate, passport size photo, physical address, and any other thing your bank may need from you.
4) Opening the account
Assuming that you selected a bank account with an online application, you can then visit the bank’s website and start the application process. You will have to scan your documents and upload them as directed. Fill all the necessary fields. Confirm all the details and submit.
You can also request a debit card in case you are opening a checking account. Most banks with free checking accounts with no deposit give free debit cards that will be sent to your physical address on a later date.
5) Activate your account
Once your account application is successful you then need to activate your account. You can decide to deposit some amount of money in your account or receive a payment to activate it and you are done. From there onwards, you can begin various transactions.
Why do I need a bank account?
A bank account is important in various ways. Some of the reasons you may need a bank account include;
i) Shopping/making payments
If you have a debit card connected to your account, you can shop online with a checking account number from various online stores such as Amazon, Walmart, and BestBuy among others. You can also shop at physical stores and swipe your card for payments. Furthermore, you can write checks to pay for goods supplied or services rendered.
ii) Receive payments
If you work for an organization, you will find it necessary to have a bank account. This is where your payments will be deposited so that you can access them either over the counter or using an ATM card. A checking account will be okay for receiving payments.
iii) Send money
A bank account will help you to send money to other people either having accounts with the same bank or a different bank. You only need to send money with a checking account number to account holders of the same bank as yours or use both the account and routing number of the recipient if it is a different bank from yours.
In this case, you can have a savings account so that you can save money for later use. A savings account does not have a debit or checkbook and this makes it hard to access the money thus making it favorable for savings.
You may also use a certificate of deposit (CD) account whereby you lock your savings for a certain period and withdraw the principal plus any interest earned at the end of the period. Retirement saving accounts can also help you save your money and start using when you reach a certain age.
Can children open bank accounts?
On their own, children cannot open a bank account. However, a parent or guardian can open an account for his or her child and manage it so that the child can benefit from the money in the future. You can open a second chance checking with no opening deposit for the child so that you can always have ready money for your child’s needs.
Most parents save money for their children’s education. This prevents you from struggling in the process of educating your child. You can allow the child to take over the account later in life when he or she is an adult.
Can I use my bank account in a foreign country?
If you have a debit card linked to your account like Visa, MasterCard, or Amex, you can access your money using the card from anywhere in the world where the cards are accepted. The money will be converted into local currencies during withdrawal. Alternatively, you can open a bank account in a foreign country and transfer your money using the routing number and account number from your home country bank account to the new bank account in a foreign country.
Do I need credit scores to open a bank account?
You do not need credit scores when opening a bank account. Credit scores are useful when applying for unsecured credit cards. Your bank must check whether you are capable of repaying debts. For a bank account, most banks will check whether you have records of misuse of bank accounts.
Information about your previous bank activities is found in the ChexSystems. ChexSystems keeps records of irresponsible bank account users so that banks can decide whether to offer you an account or not.
Can I open a bank account if in the ChexSystems?
Fortunately, some banks offer accounts without consulting the ChexSytems. This means that it is possible to open a business checking account online with no ChexSystems and run your business successfully.
Some banks consult the ChexSystems and give you a second chance account if you do not qualify for the traditional banks. The bad thing with a second chance account is that you cannot write checks. Daily withdrawals may be limited and you may be required to maintain a certain balance in your account.
What happens if I don’t use my account?
If you do not use your account for a long period, it becomes inactive. Normally, it takes 12 months for an account to be declared inactive. Thereafter, the account becomes dormant. If the account owner does not follow up with the account for many years, it can be handed over to the state.
You can always activate your dormant account by writing a request to the bank’s management explaining why your account has been dormant for the specified period. It is advisable to close all the accounts you do not need. Failure to close your accounts properly may deny you the chance to open another account with any other bank and your details end up in the ChexSystems.
If the dormant account had a credit card, it means that the credit card also remained dormant. Dormant credit cards lower your scores and you may find yourself in the bad credit category. However, you can be lucky to get a second chance credit card with no security deposit and regain your lost glory.
Having an account is important since you can use it to receive payments, send money, buy goods and services, or save money for future use. Online accounts are the best since they are easy to open and access. If you want to stop using a bank account, it is advisable to close the account properly to avoid entering in the ChexSystems.