What to Know About Online Checking Accounts

What Is an Online Checking Account?

An online checking account is an account that allows you to manage your money, make electronic transactions, and access your account information using a website or mobile app.

You can:

• Deposit money 
• Make withdrawals 
• Pay bills or send payments online 
• Transfer money between accounts 
• Check your balance and track transactions 
• Set up alerts or automatic payments

It’s a type of demand deposit account. This is a category designed for frequent use.

It works just like a regular checking account, except it’s all digital. You don't need to visit a branch to take care of most banking tasks.

Some banks offer online-only accounts, while others provide traditional checking accounts with full online access.

Why would you open an online checking account?

There are many reasons people open online checking accounts. Here are a few:

• It's convenient: You can manage your money 24/7 from anywhere, using your phone, tablet, or computer.
• It's easy to manage: Features like mobile check deposit, electronic transfers, and online bill pay let you handle most financial tasks from your phone.
• Your money is protected: Your deposits are FDIC-insured, and federal law protects your electronic transactions.

Of course, every account is different. If you’re considering opening an online checking account, take time to compare your options, review the disclosures, and pick the account that fits your needs best.

How do I deposit funds into an online checking account?

There are a couple ways to add money to an online checking account.

Direct deposit
Direct deposit is one of the most popular ways. This is when your employer sends your paycheck straight to your account electronically. You don’t need a paper check. Your money deposits automatically, so you don’t have to visit a branch to make the deposit yourself.

Mobile deposit
Mobile check deposit is when you deposit a check using your phone's camera. In general, here’s how it works:

1. Sign on.
2. Select your account and the option to deposit a check.
3. Follow the prompts to take photos of your signed check.
4. Confirm the details and follow any instructions, like keeping the paper check until the deposit clears.

Keep in mind that deposited funds may not be available right away. Availability can vary based on the time of deposit, the amount, and whether it’s a business day. In some cases, you may have the option to pay a small fee to access your funds sooner.

How do I check my balance in an online checking account?

Checking your balance is one of the easiest things to do with an online account. You can sign on to your bank's website or mobile app anytime to see your current balance.

Most online banking apps also let you:

• Set up automatic bill payments so you don't miss due dates.
• Receive alerts when funds enter or exit your account.
• Review recent transactions to make sure everything looks right.

Having real-time access to your balance makes it easier to stay on top of your spending and catch any unusual activity early.

Can you write checks from an online checking account?

Many online checking accounts allow you to make payments using checks or a debit card.

That said, check-writing features can vary by bank. Not every bank includes it. If writing physical checks is important to you, verify that this feature is offered before opening an account.

Do I have customer service options with an online account?

Yes, you do. Customer support is often available by phone, email, and live chat through a bank's website or app. Keep in mind that customer service options can vary from bank to bank.

If you have a problem you can't resolve with your bank directly, you have another option. The Consumer Financial Protection Bureau (CFPB) lets you file a complaint online. They'll forward it to the bank and work to get you a response.

Are online checking accounts secure?

Banks take the security of online checking accounts seriously. They use a mix of technology, monitoring, and federal guidelines to help protect your money and information.

Technology and account security
Banks use advanced technology with your account and personal information. This includes:

• Encryption: This scrambles your data so it can’t be read by others.
• Multifactor authentication: This helps confirm your identity when you sign in.
• Continuous monitoring: This detects unusual or suspicious activity.
• Account alerts: These notify you of certain transactions.

These tools work together to prevent unauthorized access and reduce fraud risks.

Federal protections and insurance
Online checking accounts also come with federal protections. Most banks are members of the FDIC (the Federal Deposit Insurance Corporation). They insure deposits up to $250,000 per depositor, per insured bank, and per ownership category. 

There are also federal rules that protect electronic transactions. If you notice an error or unauthorized charge, you have a process to report it and have it reviewed.

Before opening an account, it’s a good idea to confirm that the bank is FDIC-insured.

Can I Access My Checking Account Online at KeyBank?

Yes. KeyBank offers checking accounts that you can access online¹. It takes only a few minutes to open one, using your computer or phone.

Start by choosing a checking account that fits your needs. Then, enroll in KeyBank online banking or download the KeyBank mobile app². 

Once you're set up, you’ll have 24/7 access to your account. You can check your balance, set up direct deposit, pay bills, transfer money, and send or receive money with Zelle^®. You can also set up alerts and manage your card security, like locking and unlocking your debit card, all from the app.