Online bank accounts are simply the way to go in this era of convenience. But how do you actually open an account online in Canada, and what should you be looking for? Let’s talk all things banking online!
Understand Your Banking Needs
Before you enter the (entirely virtual) world of online banking, the first step is to consider your banking needs. Are you looking to save some money for a rainy day? Or, are you looking for a home base for your financial earnings? Once you’ve nailed down what you need, you can narrow down your options. If you want something to manage daily spending and help you build credit, choose a platform that offers high interest savings accounts. It will likely have cool features apart from high interest such as credit building and cashback.
Look for High-Interest Savings Accounts
One of the neat things about online banking is that you have access to high-interest-rate savings accounts. With traditional banks, savings accounts come with poor interest rates. Online banks offer considerably better interest rates that can help your funds expand at an accelerated rate. It’s a great solution if you’re looking to save for your future — but be sure to always check the interest rates and terms to get the best option.
Cash Advance Options
Cash flow can be unexpected in this day and age. You never know when you’ll need quick cash access. Choose an online bank that offers a viable cash advance solution that lets users access their money when they need it most. You can appreciate having a financial safety net on days you’re forced to cover unexpected expenditures.
Credit Building Features
Building good credit is a building block of financial health, and many online banks have products to help you get there. On some finance platforms, every move you make to be fiscally responsible can actually contribute to your credit score. You can set up a credit-building feature that will let you report your spending to credit bureaus, which can increase your score. When choosing an online account, look for other credit-building stipulations that fit your spending philosophy.
Cashback Rewards
We all like getting something back for our everyday spending. Online banking accounts are able to connect you to more reward options that meet your specific needs. One example is the cashback feature in your account – so for everyday spending like groceries, gas, and more – you can actually see your money come back to you. When looking for an online bank account, look for these features that will offer you the best rewards for your spending.
Insurance Options
When it comes to travel or renting a home, there are risks associated with your accommodations and car. There is an added layer of protection when you get the correct type of insurance. Some online banks have insurance policy agreements as part of opening a bank account. This can protect you from unforeseen circumstances that may arise while using your account.
Credit Card Benefits
A credit card can be a useful financial tool if used wisely. If international travel is your lifestyle – then you may look for online banks that do not charge foreign transaction fees. Look for banks that provide virtual and prepaid cards, which can be a good option for a person who can confidently manage his/her spending through credit cards. Also, it would be best to check if the bank offers a plastic credit card, virtual card, or both.
Timing is Everything
Timing can make a difference while banking. If promotional offers by online banks are very lucrative, one may likely go and open an account. While we all expect those offers to kick in right away, it is also important to think long-term. Does that bank have good value in general? Is the bank aligning with my financial goals? Sometimes, they are all for the long haul, so some online banks may offer a free first month or three months to test out their services without paying anything.
Beware of Hidden Fees
Sure, Digital Banking has an amazing selling proposition to reduce bank fees! Nonetheless, it is always good to go through a thoroughly detailed review of banking fees.
User-Friendly Technology
Do not forget to check what technology the bank is integrating behind the digital banking portal. Online banking is great when there is an easy and user-friendly app or website. Helps a lot to manage finances while you are on the go.
Going For Online Banking In Canada
Online banking in Canada is here – and here to stay! This is great news because you no longer have to wait your turn for some impatient teller to handle your banking needs. You can get all the handy dandy benefits and then some – especially if you use this guide to guide you well!