There’s no getting around the fact that online banking is becoming more and more popular with each passing month. Online banks are prized for a number of reasons, as they offer a variety of solutions to customers that may be difficult or impossible to find at a traditional bank. What often goes overlooked, however, is that setting up an online bank account can sometimes be easier said than done.
Browse the reviews of online banks, and chances are you’ll find that a number of customers have written about how unhappy they’ve been with their experiences. More often than not, however, the discontent comes not from issues related to the services or security offered by the bank in question, but instead from the difficulties associated with opening an account in the first place.
Just because certain online banks may be difficult to sign-on with doesn’t mean that they aren’t worth considering. Many of today’s finance professionals actually recommend having an online bank account in addition to an account at a large, nationwide financial institution. Understanding why these hurdles sometimes get in the way, then, is the key to streamlining the experience should you decide to open an account with an online bank yourself.
Are you a human or a machine?
It’s important to realize just how much of a problem fake accounts are in the Internet age. It can be difficult at times to determine whether or not you’re dealing with a human or a machine when there’s no face-to-face interaction, and this is unfortunately what banks and other institutions have to deal with on a daily basis. It’s not difficult for hackers to come up with ways to open accounts at online banks with software and code, and given the fact that this could potentially cripple a bank if things are taken too far, it should come as no surprise that online banks are so finicky at times in terms of the amount of information they require for one to open an account.
How many online bank accounts are you trying to open?
With a lot of online banks, it’s perfectly fine to open a number of different accounts. Many business owners and entrepreneurs have no choice but to do so if they wish to separate their personal banking from their business banking, although this need can make getting an online bank account more difficult than it might be otherwise. Some banks take action to prevent people from opening multiple accounts under a single name, which is one reason why they often require a great deal of information upon signing up. The same can be said for trying to add a second person’s name to an already existent account.
Security measures are often put in place to avoid any potential fraud or identity theft from occurring, which is a huge problem on the Internet at the moment. Opening multiple accounts, then, is just one of the things that can make the logistics of online banks difficult for some people to deal with.
How established is online banking, really?
Given the fact that online banking is exceptionally popular at the moment, it can be difficult to remember that online banks are actually far newer to the banking landscape than most people realize. In many ways, it’s an entirely new take on the idea of traditional banking that makes use of the latest and greatest advancements in technology.
As most people know, however, the Internet is a constantly-changing landscape that can make finding stability more difficult than most people think. Online banks certainly have established themselves as being exceptionally important, but they’re still testing the waters in many ways and doing whatever they can to stay in business. As a result, they’re more careful with who they choose as customers than many other financial institutions might be.
It’s quite clear that setting up an online bank account can be difficult at times. This being said, there are a number of things that you can do to make the process a bit easier. First, consider a number of different online banks and find out upfront exactly what they require in order for you to open an account with them.
Preparing this information and having it on-hand when you finally decide to open an account can make the process much easier. Remember that some online banks are far more difficult than others to open an account with, and their logistical details (which you might encounter down the road) may be more complicated as well.
For best results, take a bit of time to browse our best picks of online banks. The more you can learn ahead of time, the better.
Here are the top online banks that have highest savings accounts rates and free interest checking accounts:
Erik is a staff writer for MyBankTracker.com, who specializes in real estate, consumer banking and personal finance.