The ideal financial strategy is one that perfectly integrates your current expenses with your future objectives. Opening a checking account is your first step to prioritize your current financial requirements. With a checking account, you are not completely reliant on your savings account. You can also easily transfer and access money during emergencies. If you are looking for some assistance in opening a checking account online, this article is your definitive guide.

What is a checking account?
A checking account, or a transactional account, is a type of bank account that allows you to flexibly deposit and withdraw money at any given time for your day-to-day requirements. It is beneficial to anyone who makes withdrawals often. It also helps one carry out unplanned transactions without having to dip into one’s savings. In a nutshell, a checking account is highly beneficial to strike a balance between your current and future financial needs.

There are many benefits of opening a checking account. Some of these are listed below.

Safer means of depositing liquid income
Saving large amounts for daily expenses at home can pose theft risks and the possibility of destruction due to natural calamities. A checking account is a safer alternative to depositing liquid income and withdrawing specific amounts with regards to your requirements. Moreover, banks offer insurance covers for each account, ensuring that you are well-compensated in case of any untoward incidents.

Pay your money your way
Another significant advantage of a checking account is that you may choose to carry out your transactions through your preferred mode of payment. For example, you may choose to withdraw cash, pay by credit or debit card, or initiate e-payments through online payment gateways.

Instant bill payment
Paying bills by cash can be a major hassle involving constant withdrawals. Checking accounts entail online bill-payment features through online banking apps, making it easier to pay all your monthly bills. You can also activate the automatic bill payment option, which ensures timely bill payment without manual intervention.

Easier handling of checks
Writing out and accepting checks can be a hassle without checking accounts. The encashment of checks involves a fee, if you do not have an account with the bank through which the check has been issued. This hassle can be easily avoided with checking accounts, as they considerably simplify the process of check-based transactions.

What documents do you require to open a checking account?

Identity proof documents
You may present any document that provides evidence of your identity, such as your passport, birth certificate, or driver’s license.

Address proof documents
Any document showcasing one’s current address — electricity bill, credit card statement, driver’s license, bank statement, among others — may be provided while opening a checking account.

A minimum opening deposit amount
Most banks require individuals to deposit a certain minimum amount as an opening deposit. This amount differs among banks. It is best to enquire with your bank about the deposit amount. Banks typically allow customers to transfer this amount through their preferred mode of payment, such as debit/credit card, cash, or ACH transfer.

Application form
Banks usually require clients to fill up an application form with their details before they open their checking accounts. While most banks accept these forms online, some banks might require one to submit the form in person. Check with your bank regarding the procedure to submit your application form. You will also need to sign an account agreement. If you wish to do this online, the agreement can be emailed to you. You can then sign it and return it to the bank. Some other factors to consider before opening a checking account include ATM fees, service charges, no-fee safe deposit box, and flexible online banking options.