A bank account is a special entity created for you by a bank whereby you can deposit money to earn interest per given time, receive a salary, receive funds from other people, or send money to others. When you open a bank account, the bank gives you an account number that identifies you. In this article, you will learn how to open a bank account with no deposit required among other important things.
Having a bank account ensures that you have a safe place to keep your money. It is dangerous to keep money in your house as thieves can steal from you upon realizing that you have stacked cash in your room. Businessmen and women are in great danger if they keep money in their houses because robbers are ever monitoring them aiming to steal from. That is why you should be careful with your money.
If you like buying things online from various stores such as Amazon, Walmart, Alibaba, and others, you will realize that having a bank account is very important. Merchants from Alibaba mostly prefer Western Union for payment of which you should have a bank account to use it. Amazon normally prefers payments using an online checking account. Using the relevant app, you can send money online using a bank account to Amazon to receive merchandise.
Why do You Need a Bank Account?
A bank account is important for several reasons. First, a bank account will offer you a safe place to save money. Although some people prefer keeping money in the homemade saves, that is not a clever option. If anything happens to your house, for example, a fire outbreak, you lose your money. Thieves may also steal your money.
Saving in a bank improves a country’s economy since money can circulate as loans as compared to when you keep the money in your house and it lies there without working within the population. Furthermore, you can also qualify for a loan because of saving with a particular bank.
If you become an employee of a certain organization, you need to have a bank account so that you can receive your salary from there. Many employers pay via a bank account and not by cash. After all, receiving your salary via a bank is more secure. It also helps the government to tax you effectively.
Do you want to send money internationally? If so, a bank account can help you so much. You also need to understand how to transfer money using the routing number to make successful transactions. You will also use your bank account to transfer money domestically to friends and relatives.
What type of Bank Account Should You Open?
Before opening a bank account, you need to understand what you will do with the account. Accounts have different uses. You can open an account for savings, salary or checking. A savings account will help you save the money you get from your business to earn interest. Moreover, you will be protecting it from theft.
For the case of a salary account, you will have the account to receive payments from your employer. Upon receiving, you will be able to withdraw the money from your account using an ATM card. You can also send money with a checking account number to someone else from your account.
Another popular account is the checking account. It is important to help you access money 24/7 for various uses. We can call it an emergency account as well. If you have someone you cherish and he or she needs urgent money, you can send money from the checking account instantly and they can access it within no time.
Which type of Payment Card Should I Have for My Account?
There are two main types of cards that you can use with your bank account. These include debit and credit cards. A debit card enables you to access money in your account using an ATM, agent’s card readers, merchant stores and so on. With the card, you minimize going to the bank to queue for withdrawals.
A credit card helps you to buy goods and services as well as sending and withdrawing money even when you have no money in your account. The card allows you to borrow money from your bank and pay at the end of the month.
Your bank sets a credit limit whereby you cannot spend beyond that. The credit limit depends on your credit score. If you have a good debt payment history, you will receive a bigger credit limit and vice versa. Some people cannot qualify for a credit card at all.
With either a credit card or debit card, you can do many things including sending money online, buying goods and services online, Paying salaries to workers and so on. Moreover, you can buy gift cards online with a checking account and receive them via your address. According to the type of card you have, you can either have a debit account or a credit account.
How long Does it Take to Open a Bank Account?
To be sincere, the time taken to open a bank account varies from bank to bank. Again, it also depends on how many people are opening accounts that day as well as the bank’s machinery to carry out the process.
However, when all factors are constant, you will not take more than an hour to open an account. It is easier if you know how to read and write since you will be able to fill the forms very fast.
Sometimes back, it was not easy to own a bank account. A bank could decline to give you an account if you did not have proof of where you will get money to deposit in your account. However, today bank officials will open an account for you without hesitating.
What are the Requirements When Opening a Bank Account?
In most cases, you need to have a national identity card with a genuine identification number. It helps to curb fraud so that in case something happens with your account, you can be answerable.
Another requirement during registering an account is a passport size photo. It helps you to show that it is your account and adds more proof. It should be the recent one so that it gives an actual representation of real you.
In the process of making the application, you will need to sign different parts of the documents as well as taking fingerprints. Moreover, the officers may need to record your fingerprint using a fingerprint scanner.
Upon opening the account, most banks will not force you to deposit a certain amount but will wait until the time you get money in your account.
What Happens if My Account Stays Dormant?
Banks need you to keep your account active by depositing and withdrawing money depending on the kind of bank account you have. If you fail to use your account for long, then it becomes dormant.
Most banks penalize you for having a dormant account. You may be required to pay a certain amount of money for account activation. However, it is normally a small amount of money.
Can I open a Bank Account for Someone Else?
It is possible to open an account for someone else, more so your child and deposit money on their behalf. Young children have no identity cards. Furthermore, most of them do not have a job to earn them money which they receive via the accounts.
As a parent, you can open a school fees account for your child so that when he or she reaches the college level, they have ready money to pay for school fees. Early preparation for your child is very important because it helps you to avoid problems when your child begins schooling.
Can I Open a Bank Account Online?
Many banks allow people to open banks using their online platforms. It does not matter where you are. Whether seated in your office or house, you can just use your phone and internet to open a bank account.
Banks that allow online account opening aims at decongestant their work so that not many people will flock into their facility to open an account.
When applying, you have to submit all the necessary documents such as the ID document, and passport size photo as attachments. You also need to attach your electronic signature among other things.
Everything is step by step and is guided in the process. After all is done, you get a confirmation message that the account creation is successful. You are now set to begin using the account.
After creating an online account, you can do everything online including depositing, sending of money and payment of goods and services. The online platform also helps you to get assistance from customer care readily.
Can I Open a Bank Account if I Have Bad Credit?
Nowadays, no one will prevent you from opening an account with any bank. If you are opening a debit account, you will not undergo a credit check since you are not borrowing any money. You are a good customer for the bank since they will benefit from your transaction.
However, you cannot get a credit account if you have bad credit. Remember that, having a credit account and a credit card, you will be able to borrow money from your bank to buy goods and services and pay that borrowed money at the end of the month.
How Safe is Your Money in a Bank Account?
Saving your money in a bank account is important since banks have adequate security. The vaults where banks store money are very difficult to access except by the authorized personnel. Moreover, there are securities officers armed with rifles that guard the bank’s premises against invasion by thieves.
Moreover, banks do not always keep money in their premises. Most banks deposit money in the Federal Reserve Bank to earn some interest as well as keeping the money safe. They may have a small amount in their vaults to work with. Sometimes when you need to withdraw large amounts of money, you have to notify them in advance so that they can go for it at the Federal Reserve Bank.
Which Banks Allow Account Opening With No Deposit?
Several banks allow you to open an account and deposit when you want. Others require you to make a certain minimum deposit to make your account active. Let us look at the banks that allow you to open an account without forcing you to deposit some amount of money.
1) Capital One 360 Checking
Capital One 360 Checking offers you a free checking account whereby you are not required to pay any deposit. There is no minimum balance required for this account. Moreover, you will be able to get a free debit card, Overdraft forgiveness, online banking, mobile banking, and Access to over 39,000 ATMs across the U.S.
2) Ally Bank Interest Checking
Ally Bank Interest Checking is an excellent bank that offers free checks. Moreover, the bank has very many ATMs across the USA. The bank offers up to 0.10% APY which depends on your account balance. The application is online. More details.
3) Discover Bank Cashback Debit
Upon opening Discover Bank Cashback Debit account, you will benefit from online banking, Mobile banking, and Free access to over 60,000 ATMs across the U.S.A. Using their debit card, you can earn 1% cashback on expenditure above $3000. More details.
4) Axos Bank Rewards Checking
The bank offers you a free checking account that requires no minimum balance. The bank also offers online and mobile banking as well as free check deposits. You will also get unlimited free reimbursements for domestic ATMs. More details.
5) First Internet Bank Free Checking
The bank will give you a free online banking account. You will have unlimited access to your mobile banking. Moreover, you will have unlimited check writing. Also, you will have a free ATM card for use. More details.
A bank is very crucial when it comes to saving money. Instead of keeping money in your house, you should have a bank account to save money. Again, having a bank account with no deposit helps you to open an account and prepare in advance for any money you expect. Above all, bank accounts with no minimum balance required are the best.