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All you need to know about opening a free bank account
It is estimated that free bank accounts will disappear within a decade and that it is happening already with banks charging up to $10 per month. It is also noted that people who refuse to pay fees, gradually face restrictions on withdrawal limits or block with using branches. The model of free banking is unsustainable due to the lack of good profit. The free bank account is perceived to be free, however, charges are applicable on overdraft fees, ATM withdrawal fees, and penalties on minimum balance.
Are online bank accounts free?
To answer the question, you need to know how free online bank account works. Though online bank accounts offer a higher APR than traditional banking are can be opened for free, the affiliated bank charges ATM fees every time a withdrawal is made in the account.
How to open an online bank account?
Once you have decided to go for online banking then go to the website of your preferred bank and click on the link with clever headings like “Get Online Bank Account Now”. The required details to open an account in online bank include address, personal and work numbers, date of birth, Social Security Number or Tax Identification Number and a proof of ID. Some banks offer a low minimum deposit of $1 or $10 to begin the account to confirm the identity of the transactions.
What are the precautions to be taken?
Many online banks do not charge fees and have no minimum balance. However, it is important to read the fine print of terms and conditions on interest rates, fees, and charges. In addition, one needs to look at the FDIC Insurance of the bank because online banks can also fail. Make sure your password of the account is strong along with the security questions. Do not share the passwords and security questions with anyone.
Free online bank accounts can give you better rates as they do not have a branch and staff. So, if you want to open a free bank account, go online.
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