Savings Accounts: Making an Online Application

You read the newspaper on a screen, talk to your friends over the internet, and send more email than letters. If you're ready to open an online bank account, you can benefit from being able to bank when you like and enjoy better rates on your money - but make sure you aware of all the aspects of an online account

It is also important to know the documents you need to submit before you can apply for a savings account and get your high yielding account.

So if you want to apply for a saving account from an Internet bank, here's a basic guide that could help you in getting your own online account.

First Step: Apply for a Savings Account Online

Before you can apply for an account online, you have to be a legal resident of Australia. When you start the process of application on any Australian Internet bank, you will be redirected to secured page because you will input sensitive information on its online forms.

The application process for an online account is done purely on the Internet. Online banks do not have physical branches. That is why you can enjoy high interest rates because the savings on overhead costs will be passed by the bank to your online account.

Fulfill the Requirements for an Online Savings Account

When you apply for an account, you will be required to provide your Tax File Number. There is no need to mail your tax information when you apply for a savings account. You will just have to fill up the necessary forms online. The bank will verify your tax number before you can get you online savings account.

The bank will then take further steps to make sure you are who you say you are. This is in compliance with the Anti-money Laundering regulations. In special cases, the bank may request more documents from you before you can get your online savings account.

For example, you may be required by the bank to submit a copy of your passport, birth certificate, or certified copy of your driver's license. The financial institution will inform you if physical verification of these documents is needed.

Other Steps Needed When You Apply for a Savings Account

When you apply for a savings account online, you should have an existing checking account or a regular savings account from an Australian bank. Online accounts do not replace ordinary bank accounts, they complement them.

You can transfer money to and from your online savings account and regular bank account. Setting up an online account requires an existing ordinary bank account. So you'll need the details of your existing account.

There are Internet banks that will allow you to link up 3 regular accounts to your online account. The requirement may be as low as one "bricks and mortar" account.

The application process for an online savings account will take at least 10 minutes. Confirmation and approval of your application will be sent via email. You will also receive a phone call from the company to let you know your account is ready.


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Richard Greenwood heads up the team at banking and savings accounts website compareyourbank which compares accounts from leading banks including St.George savings.