the past 5 years the percentage of people banking online has increased dramatically, but there are still a large number of people who still are not willing to open a bank account online. For many, the reason for shying away from online banks is the internet in general, or not having seeing a face, while many others worry about the safety of banking online. It is normal to feel this way.
You should not have any safety concerns about banking online because it is just as safe, if not safer than having a bricks and mortar bank—just confirm that you are signing up with a reputable bank that is FDIC insured. Not having that personal relationship with your bank and bank reps can be a drawback for some, but most do not need to actually go to a bank with any regularity. Plus, if you have a bricks and mortar bank you can bet they probably have online banking available. So let’s go through the steps so what you might see as an intimidating process can be made as easy as possible for you.
Step 1: Ask someone you know to recommend an online bank to use or ask your current bank if they provide online banking services or look on the internet for sites that compare banks strengths and weaknesses and if they have fees. See if there are special deals available for signing up. Many online banks will give you free money to sign up with them.
Step 2: Decide which type(s) of accounts you want and go to the online banking website (e.g. Netbank, EverBank) and navigate it until you find out where you can apply for an account and click there.
Step 3: Get all your personal information (social security number, job information, etc.) out as well as anyone whose name might also be on the account.
Step 4: Fill in all the required information on the application and submit it online.
Step 5: Write a check in the name of the bank and note that you want to fund your account–you will need to get their correct mailing address(some banks have multiple addresses so make sure you are mailing your check and information to the correct address. Some banks have account minimums so be sure to put in at least the minimum.
Step 6: Your account should be funded and ready to go within a week or so of your mailing of the account funding check. If you have time email or call up the bank’s customer service line and ask for the status of your account.
Step 7: Once your account is set up and funded you might need to order checks (you will need your account number and routing number) or set up another bank so you can easily transfer funds from e.g. a checking account to a savings account. If you want you can also set up services like billpay which will automatically draw from your account whatever bill(s) you want it to pay automatically.
After following these steps you can relax and enjoy the benefits of banking online.