Online bank accountsby Admin | September 2, 2021
Online Accounts Without Fees
More and more people are migrating away from traditional banks. In some cases, households are entrusting their financial situation to the best free bank accounts because, in addition to not charging fees, many of these accounts feature multiple benefits that are impossible to ignore.
Due to the advancement of technology and the widespread use of the Internet, there are more than a few people who are questioning their membership in traditional banks. Thus, banks have had to modernize to offer their users free bank accounts, 100% online and without fees. In addition, these accounts allow financial institutions to reduce operating costs and have more efficient systems.
What are the types of online accounts that exist?
The growing popularity and demand for free bank accounts has a reason. This type of accounts, 100% online, allows users to operate through the Internet, without the need to go to the bank branch. Among the types of free bank accounts currently available, the following should be mentioned:
Checking account without conditions.
Although it is one of the least common accounts, traditional banks such as Bank of America or Wells Fargo offer this service. However, the user will have to keep all his operations online and not attend the branch, if he does not want to pay commissions.
In exchange, the bank will not set any conditions for not charging commissions and at the same time customers will have an account with which they can perform all kinds of operations such as transfers, direct debit of bills and even payments and deposits with checks for free. Lately, traditional banks like this modality as it allows them to close branches and reduce operating costs.
Another type of entities that have been emerging in recent years are the so-called neo-banks. These stand out for being financial institutions without their own infrastructure and without physical presence (everything is done online). They do not have their own branches or ATMs, but allow their customers to use the ATMs of other entities to withdraw money. Their operating costs are much lower than those of traditional banks as they do not have to acquire or maintain offices or ATMs. One drawback of these new banks is that for the moment their operations are somewhat more limited. For example, they do not allow cash deposits or operations such as issuing bank checks. Examples of these banks are N26 or Revolut.
Checking accounts with terms and conditions
Another way in which users can enjoy free checking bank accounts is by accepting certain conditions from the bank. Some of the most common conditions are direct deposit of the salary, paying a bill with the account or using the card a certain number of times. However, to compensate, some banks offer the beneficiaries of a checking account with requirements, some advantages such as interest payments or payroll advances.
At present, almost all traditional banks require customer loyalty in order to offer free current accounts. In fact, in recent months these conditions have become more demanding. For example, some banks now require customers to take out insurance or investment products in order not to charge them account fees.
It should also be noted that commissions on accounts and cards have been rising, and now you can find entities that charge $200 or $250 a year for having an account with them without complying with the conditions of linkage…
Among the free bank accounts currently available are savings accounts, which allow users to enjoy a certain return on their savings. However, those who choose this account cannot use it to pay bills or make transfers to accounts that are not their own. That is why these accounts cannot be used for day-to-day operations such as bill payments or transfers to other people.
Before deciding on a bank account you should understand the present market offer and decide if you want to (or can) comply with certain requirements so that the financial entity does not charge you for the account.
If you are 'allergic' to being linked to banks, the best option is to choose an online account that does not impose any requirements.