In a world where technology has made so many processes easier, people are often dismayed by the difficulties they meet when trying to open a bank account online. Overwhelming options, confusing requirements, and surprise fees can irritate even financially savvy consumers.
But setting up a bank account doesn’t have to be frustrating. Here are four easy ways to help you enjoy a hassle-free experience when managing your money.
- Narrow Down Your Options
The sheer number of banking options – plus concerns over potential mistakes – can make it hard to choose an account. Focusing on finding an account that supports your goals and matches how you manage your cash can help.
For example, let’s say you want an account that makes it easy to pay bills on time, so you think a checking account may be the right call. But you also know that you periodically have big expenses, which turns your attention to fee-free accounts, particularly ones that don’t charge for going below your minimum balance.
Once you have an idea of the type of account you want, you can start factoring in details about the bank, such as ATM locations, interest rates, online banking options, and customer service.
- Know What Documents You Need – and Where They Can Trip You Up
Banks are required by law to verify your identification when you open an account.1 Most accomplish that by checking documents with your name and address, like a state ID, driver’s license, or passport.
That seems simple enough, but you might encounter problems if your ID has expired. Moreover, banks often ask for two forms of identification, and you may have issues if the addresses don’t match. People who have recently moved, live on a school campus, or have nontraditional living situations sometimes struggle to provide current or matching identification.
You can usually minimize this hassle by:
- Reviewing the bank’s list of acceptable documents. Most banks provide this information on their websites, but you can also call customer service or visit a local branch.
- Gathering the appropriate documents before you apply. Having what you need when you apply streamlines the process.
- Double-checking the information. Check that the addresses match and the documents are current, including secondary documentation like lease agreements or utility bills.
You may need to upload documents to open a bank account online. In that case, you might want to digitize them in secure formats ahead of time to make the process easier. One way to do that is to scan your documents and upload them to a cloud storage service or save them on an encrypted USB flash drive.
- Avoid Surprise Fees
One of the more common frustrations consumers face is unexpected fees. These fees typically appear after opening an account, but you can minimize or even eliminate them during the application process.
The key is getting the information you need right away. Federal law requires banks to disclose any fees connected with checking and savings accounts, so you can ask any bank you’re considering for an account disclosure and fee schedule.2 Here are some of the fees you might encounter:
- Account maintenance
- Minimum balance.
- Out-of-network ATM.
- Insufficient funds.
- Excessive transactions.
- Overdrafts.
You can often avoid bank fees if you know what they are. For instance, some banks waive monthly maintenance fees when you link a direct deposit to your account or maintain a minimum balance.
Bonus tip: Some bank accounts require an initial deposit, usually between $25 and $100, depending on the bank and account type.3 Asking about initial deposit requirements before you pick an account can minimize frustration later. You may even find no-minimum deposit accounts.
- Be smart about activating your account
Activating an online bank account requires a few more steps than a simple login. You’ll likely receive an email with a unique link or a code to enter that activates your account, and you’ll need to create a secure password. But you may also want to set up online tools like:
- Direct deposit.
- Automatic payments.
- Two-factor authentication.
- Overdraft protection.
Many bank accounts also offer alerts for:
- Low or negative balance.
- Deposits or withdrawals that exceed a set dollar amount.
- Changes to your user profile.
- Unusual account activity.
Online tools like these make it easier to manage and protect your money.
One final tip: If you’re switching bank accounts, remember to reroute your direct deposit and update the information on any automatic bill payments. You might even want to keep the old account open for a few weeks to make sure you don’t miss any bills.
A Smarter Way to Start or Switch
Opening a bank account doesn’t have to be difficult. Arming yourself with information and a clear understanding of what you’re looking for can help you sidestep some common frustrations that come with a new account. Ultimately, your efforts can set you up for a smoother, smarter banking experience.
Sources
1 https://www.helpwithmybank.gov/help-topics/bank-accounts/required-identification/id-types.html
2 https://www2.helpwithmybank.gov/help-topics/bank-accounts/fees-terms/terms/terms-disclosures.html
3 https://www.usnews.com/banking/articles/how-to-open-a-bank-account
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