Online transactions are priceless in a busy world. Fortunately, most of us can complete plenty of banking tasks online and reduce trips to a branch. Moreover, we can save on printing, including signing paper forms. That is because banks are beginning to handle everything digitally. There is so much you can do with an online bank account, including, paying bills online, funds transfer, and much more. But how do you open a free business checking account online with no deposit ? We all know that banks require a minimum deposit when opening an account.
Opening a bank account online these days is a piece of cake. When you looking for “open bank account online no deposit”, you will find that some banks require $0 minimum deposits when opening the account. Moreover, you should be ready to provide personal information to enable the bank to confirm your identity. The bank needs to know who you are, hence the need for personal details. Therefore, be prepared to provide your tax ID number, social security number, or their equivalent. Moreover, your date of birth and identification from the government such as a driver’s license or a passport are basic requirements.
Besides, banks need your phone number, email address, and most importantly, your home address. Although you are operating virtually, federal law still needs you to give a physical address. This is where you live, even though a postal address or its equivalent like a mailing address would do.
Open A Free Business Checking Account Online With No Deposit
When starting a small business, getting it off the ground carries plenty of important steps. After completing tons of paperwork, you are still not done. You will be looking to set up your enterprise with a business bank account. A business checking account is an essential part of separating personal and business finances. The advent of online business banking makes it easier for your own small business. Finding the right business checking account for your startup is effortless, with plenty of free business checking account options to choose from.
That notwithstanding, the real issue is whether you can open a free business checking account online with no deposit. After all, like most startups, you might be depending on a small budget to set up your business. Besides, you may have already invested all you can into the business. Given that, it will take a while for the business to start rolling with revenue, you’ll quickly, want to embrace a free checking business account without a deposit.
We have already mentioned that you can open bank account online no deposit required. Additionally, most banks are providing free business checking accounts without immediately, making a deposit. It is also essential to make sure that your bank does not apply a maintenance fee, and that you will not be asked to maintain a minimum balance. Even though nearly all banks offer free checking, accounts without a minimum balance or maintenance fee usually have lower interest rates than other checking accounts.
The five core steps below should help you to open a free business checking account online without putting down money.
Step 1: Decide Your Type of Bank
The first step in opening a free business checking account online is deciding the type of bank to use. You can choose between a local and an online bank. Nearly all local banks today provide online banking options. In addition, they offer in-person customer service if you have issues or questions. On the other hand, you will not get walk-in services with online banks. Therefore, deposits and all other communication will be through the phone or via mail.
Step 2: Locate The Right Bank
Even as most banks offer free checking accounts, not all come without an initial deposit. Therefore, you will want to contact them to see if they have the right type of account for you. If you are using an online bank, research over the internet for one that meets your needs. In case of questions regarding the bank’s services, call the phone number on their website to talk to a customer service agent.
Step 3: Apply For The Account
Once you are done with the first two steps, opening a free checking account for your business is relatively simple. The bank will ask you to provide identification, which can be:
- a birth certificate
- a military ID
- a driver’s license
- a social security card
- a passport
Depending on your choice of bank, proof of residence might be a requirement. This can be your car registration, lease agreement, or a piece of mail.
Step 4: Confirm The First Deposit
While you do not have to make a deposit during the business checking account opening process, some banks need you to use the account within 60 days for it to remain open. You do not want to start the account on the wrong footing. Therefore, make sure you find out from the bank how long you have before making the first deposit.
Step 5: Start Banking
Most banks will mail you a debit card within a couple of weeks of opening the account. Once you are ready for the initial deposit, an online bank might provide a deposit-mailing envelope. Alternatively, you can transfer the money electronically, if you have another bank account. Local banks will issue deposit slips for you to fill out and submit during their business hours.
Why You Need A Business Checking Account
According to the economic entity principle in accounting, your business is a separate accounting entity. Interweaving your personal finances with your business expenses is a bad idea. To start with, separating the two can be a lengthy process. Besides, mixing the two will create many issues when you are dealing with the IRS.
Here are four compelling reasons you need a business checking account:
- It provides a secure and accessible option for your business working capital
- It provides access to business debit cards
- It is an invaluable tool to keep tabs with your business finances
- It is the right tool as a future financial product, providing access to business loans or credit cards
What To Consider Before Open A Free Business Checking Account Online With No Deposit Money
By now, it is clear that you can open a bank account online with no money. However, if you are opening a business checking account, it is essential to decide what you want from one. Are you only looking to separate personal and business finances? You can make a business checking account the start of something big.
When you are locating a business checking account, be sure to consider these factors:
- Frequency of monthly transactions: A checking account can involve multiple transactions. Therefore, you should be thinking cash withdrawals, check and cash deposits, electronic payments, as well as payables by check.
- Average daily account balance: Most banks will offer higher rates and do away with maintenance fees if you can commit to a specific amount in the checking account every month.
- Minimum opening deposit: You are free to choose an account without an opening deposit vs. a small deposit. If you can afford it, you might want to be okay with making a deposit.
- Physical branch availability: Some of the business checking accounts are only available online. However, if you have a business dealing with lots of cash, an online-only account might not be the right fit.
- Size of the bank: Because you are trying to build a relationship with a bank, would you rather do it with a smaller institution like a credit union? You may also prefer to have the business checking account working alongside your personal one at a larger bank.
These are the most basic factors to consider, which in the end, are likely to influence the fees you will pay for the business checking account. This is because even if you open a free online checking account without a deposit, it might not be the fit for your business needs. You might eventually go overboard with fees, which is not so free.
Open Checking Account Online Instantly
Opening a checking account online is easy. However, because most banks require a deposit for opening the account, this might slow down the process. When looking at prospective business deals, you might need the account almost immediately. For that reason, some banks and credit unions will allow you to open checking account online instantly, and make the deposit later.
You will immediately get an account number along with a routing number, which you can use for direct deposits. Additionally, anyone can transfer money using routing number and account number. It often takes minutes and saves you a trip to the physical branch. Moreover, FDIC insures top-rated online banks, which often give low to no maintenance fees.
To open the account, here are the steps to follow:
- You need to visit the website of your preferred online bank
- Choose a free checking without an opening deposit
- Ensure the account does not require a minimum balance or maintenance fee
- Fill out the online application form
- Wait to receive your checking account number and routing number almost instantly
- Use the information to establish a direct deposit when ready
- Wait a few weeks to receive a debit card with free checks
Opening a bank account is easy with the advent of online banking. Initially, the process was lengthy and involved as you would have to visit the bank and bring in all requirements to open an account. Previously, the process would take about a week. Today, however, you will be through with the process in minutes and without visiting a local bank branch. What is more, is that some banks allow you to open bank account online no deposit required. It is certainly better to open a bank account and one that you can remotely, use for transactions.
Frequently Asked Questions
Q. Can you open a bank account online with no deposit?
A. Nearly all banks have a standard fee to deposit when opening an account online. However, some of the banking institutions allow you to open bank account online no deposit. It is also important to do your homework and confirm if the account is right for you. While you can open a bank account online without putting down money, a good rule of thumb is to ensure the account does not apply maintenance fees or a minimum balance to keep it open.
Q. What banks don’t require opening deposits?
A. Generally, banks that offer a free business checking account online do not require opening deposits. The catch, however, is that it is difficult to find a banking institution that will allow you to open a free business checking account without putting down some money if you are signing on the dotted line. You should, therefore, consider going for a fully digital banking experience if you do not want to pay an opening deposit.
Q. What is the minimum deposit to open a bank account?
A. The minimum deposit to open an account at a bank will vary from one banking institution to the next. Since various financial institutions offer different products to customers, you will have to confirm the fee structure for opening an account with individual banks. However, most of these institutions also provide a $0 minimum deposit requirement for opening a bank account.
While most banks are offering consumers the opportunity to open a free business checking accounts online without putting down money, you will want to watch out for their charges. For example, when opening a checking account for your business, consider one that does not need you to maintain a minimum balance. Moreover, the best bank accounts are those that do not charge a maintenance fee, while still earning interest on your balance. A good rule of thumb is to compare different banks with their product offers and choose one that provides some additional facilities. Besides, you will want to keep in mind that a bank is as good as its network. Banks with fewer branches and ATMs, or instance, might create trouble with your business operations.