A digital checking account is a deposit account you can open and manage entirely online through a bank’s website or mobile app.
Digital-only checking accounts share many similarities with checking accounts you can open through a traditional bank or credit union: They’re designed for frequent deposits and withdrawals for your everyday spending, usually provide you a debit card for spending and ATMs, and may offer checks and/or bill pay features.
But online banks go above and beyond your traditional brick-and-mortar institutions to offer flexibility, features and rewards traditional banks can’t.
Here’s what you need to know about digital checking and the benefits you’re missing out on if you haven’t opened an online bank account yet.
Why Open a Digital Checking Account?
An online bank account comes with a lot of advantages over an account with a traditional bank.
One of the biggest advantages is the bank’s lower overhead, which means higher interest rates and lower fees for you. A digital bank doesn’t have to maintain brick-and-mortar locations like a traditional bank, which cuts out expenses including property costs, maintenance and taxes; staffing; furnishing; and utilities.
That reduced overhead means the bank doesn’t have to charge you so much to keep the lights on. Online banks usually come with low or no fees — Quontic’s High Interest Checking account1 charges no monthly or overdraft fees. And they can often afford to offer much more interest on your account balance than traditional banks. At Quontic, our High Interest Checking account earns 1.10% APY when you make at least 10 qualifying debit card point of sale transactions of $10 or more per statement cycle. (That number can change, so keep an eye on our checking account page for the latest rate.)
Digital checking is also much more versatile than checking at a traditional bank.
You can access your account 24/7 online or from a mobile app, including checking your balance and transactions, transferring between accounts and even depositing paper checks using your smartphone’s built-in camera. At Quontic, we even keep your ATM fees down by partnering with four ATM networks. You won’t pay an ATM fee if you use an AllPoint, MoneyPass, SUM or Citibank ATM, which you can find in popular retail locations all over the country.
Who Can Open a Digital-Only Bank Account?
Anyone with access to the app or website can open a digital checking account as long as they meet the bank’s requirements.
It takes about three minutes to open a High Interest Checking account through Quontic. You just have to provide the information all banks use to verify identity, like contact information, Social Security number and date of birth.
Once approved, you can fund your account instantly with a transfer from another institution. The minimum opening deposit is $100.
Digital Checking Account Security
Are online banks safe? Because online banking is relatively new for a lot of people, it’s understandable that you’ll question the security of an institution you’re not familiar with. We assure you, online banking is just as safe as banking with a brick-and-mortar institution.
All eligible Quontic bank accounts are FDIC-insured up to $250,0002, just like all chartered banks. We verify your identity when you sign up, and we use multi-factor authentication to ensure only you can access your account. We know your personal and financial information is sensitive, and we comply with federal regulations to protect any nonpublic data we process online.
Remember, most banking and financial transactions are done over the internet, even if your bank has a physical location. All banks are required to comply with security standards, and digital-only banks are no different.
Interested in opening a high interest checking account? You can apply online in just a few minutes or, if you have questions, our team is ready to help.
1High Interest Checking Account is a conditional tiered variable rate account wherein you must deposit $100.00 to open this account. After fulfilling the minimum qualifying activity requirements per statement cycle of 10 qualifying Point of Sale debit card transactions equal to or over $10.00 per transaction, the 1.10% annual percentage yield (APY) applies to all balance tiers, which are identified as $0–$150,000, $150,000.01–$1,000,000 and balances over $1,000,000. If the qualifying activity requirement is NOT fulfilled, the annual percentage yield on the balance will be 0.01%. Ask for details. Additional terms, conditions, fees & exclusions may apply. Rates may change without notice. If the account is closed before interest and/or bonus is credited, accrued interest and/or bonus may be forfeited for that statement cycle. Fees could reduce earnings. The following activities are not considered qualifying POS debit card transactions and do not count toward earning rewards: ATM- processed transactions; transfers between accounts; purchases made with debit cards not issued by our bank; cash over portions of point-of-sale transactions; Peer-to-Peer (P2P) payments (such as Apple Pay Cash*); loan payments or account funding made with your debit card and purchases made using third-party payment accounts. Transactions may take one or more business days from the date the transaction was made to post and settle to an account. Online Account Opening is only available to consumers. Data connection required to open an account online. Carrier fees may apply. Application is subject to approval. Information is accurate as of January 31, 2022 and may change without notice.
2FDIC insurance is applicable to eligible deposit accounts and up to the maximum allowed by law. Learn more at FDIC: Deposit Insurance