Why Opening A Virtual Bank Account Makes Sense For Business


For the most part, businesses exist to fill the bank accounts of their owners, shareholders or investors. But, hopefully, your business has a larger purpose and mission as well. When you run a business with great customer service and profits start accumulating, most business owners do not use their personal checking or savings accounts for business purposes. They obtain a business bank accounts as a first option. This allows them to keep their personal assets separate from the company assets. Depending on your business or location, you might choose a virtual bank account. Learn more about these types of checking accounts below.

Why Open A Virtual Bank Account

Depending on the nature of the business, some owners find it more convenient to open a virtual bank account. These are real checking or savings accounts that are available only online. In contrast to the best business banking accounts in the USA, funds may not be withdrawn at a bank branch. However, they can be accessed at an ATM or via a debit card transaction. That’s right, virtual bank accounts with debit card options are available.

How To Apply For A Virtual Account

To apply for a virtual us bank account, the process is very similar on how to obtain a regular banking application. You often provide proper identification, forms and proof of who you are and the nature of your business. Furthermore, if you are applying for a virtual bank account in the US as a non-US resident, you may have to provide additional documentation or paperwork. Since you are you applying with a virtual bank, you can expect the applications and documents to be done all online or via mail.

What Are The Risks of Virtual Banks?

The risks of opening a virtual bank account are similar to those of the regular bank account. Although you do not require a corporate resolution to open an account, some people believe there is a higher risk to having a virtual bank account. There is not much proof to their belief. In actuality, many virtual bank accounts offered are by established traditional banks. For example, Bank of America offers its own virtual checking account solutions. Additionally, you can opt for virtual checking accounts which are FDIC insured, limiting the risk of bank failure.

However, whenever there is a new technology, there is fraud too. So, if you see any VBA offers, you must carefully check that the bank is registered and legitimate. You do not want to be sharing your SSN and personal information with an illegal company. Be wary of offers for a US bank account with an ATM card linked to it. To be safe, do not buy virtual bank accounts from individuals. Only apply online to secure connections that you have checked for legitimacy.

Difference Between Virtual Banks And Paypal

Legitimate virtual banks hold actual currency backed by government. They should not be confused with virtual wallet or digital currency like BitCoin. Even Paypal, founded by Elon Musk, is not considered a virtual bank and is not insured by the FDIC. Thus, you can not have a Paypal bank account, only a regular Paypal account. However, the Paypal virtual credit card can be a nice alternative. The PayPal VCC is used by many business owners to rebuild credit score easily. The VCC Paypal is a virtual credit card for Paypal users. Moreover, there are select virtual accounts that allow you to verify a PayPal account. There are not many virtual bank accounts in the US with PayPal verification, but they are out there. Check out banks like Payoneer, Ally, Yandex, Payza and others.

Virtual Checking Account Features

Most virtual banks like VirtualBank offer checking accounts to online customers. These checking accounts have major banking features like 0.25% interest rate on your balance. Plus, the funds are FDIC insured. They provide free online statements, unlimited check writing and a Mastercard/Visa check card. Other virtual banking services offer accounts with addon features like virtual wallets, online bill pay and secure statement downloads. However, depending on the virtual bank account, you may have a deposit minimum of $300, $500 or more.

As the banking industry continues to evolve, it will be interesting to see what new features virtual banks offer their account holders. There are new virtual banking options like a numbered bank account, instant virtual credit cards and even eBay stealth account holders. Depending on your needs for a US virtual bank account, you can apply for a free bank account or Paypal alternatives. It makes sense to open a virtual bank account if you are doing business online or perhaps, internationally. Of course, you never want to have all your funds in one place.

Big Bank Virtual Bank Accounts

With virtual banking accounts becoming trendier, there are now some big institutional banks that want to get a piece of the action. One such bank is PNC, who now offers a service called Virtual Wallet. This virtual banking option offers individuals the chance to give this new finance trend a try, while still offering the familiarity and comfort of a well-known, FDIC insured name. You can apply for one of these free checking accounts online in as little as ten minutes, and you can even earn up to $300 by opening a virtual account with the bank. If you want to give banking virtually a try but are weary of lesser known banks, considering easing into the idea by opening a Virtual Wallet account with PNC bank.

Top Digital Banks

Naturally, there are some online banks that are better than others. The best digital banking solution depends on your particular needs, however. This is important to remember. You should be sure to consider some of the top online banks out there when making your decision. Aspiration, Bank of Internet USA and Simple offer some of the top online checking accounts available to consumers today. Consider these digital banks when  deciding which one is the best for your finances. That way, you do not have to worry about 30 days payment terms and other frustrating regulations of traditional banking institutions.

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  1. You didn’t mention which are the actual virtual banks except for PNC :-/

  2. @Sarah: There are two.. One is by the name Virtual Bank (FDIC funds insured) and another is PNC (FDIC name insured) Bank, as per the details above. Not sure, but I am looking for the same as you.

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