What Really Happens When You Open a Digital Savings Account?

Opening a Digital Savings Account Is Easy

A savings account at a traditional bank may offer online banking, but an online digital savings account is designed specifically for online use. Its digital-first approach means opening and using your account may be easy and intuitive.

You can complete the application process from a computer or mobile device in minutes. Because your account is fully digital, you can open and maintain it online as well. This gives you control and visibility of your savings. But when you need to interact with people to get questions answered, a digital account likely offers that too. At Forbright Bank, we have customer support representatives available by phone, email and secure message to support customers during banking hours.

To open an online savings account like Growth Savings or Growth CD, you need to provide your contact information and a Social Security Number.

You will also need your login credentials for an existing bank account to transfer funds into your new savings account. You have the choice to transfer funds while you open the account or at a later date.

Digital Savings Accounts Are Secure

Banks are required to verify the identity of an account holder before opening a new account, even for online accounts. At Forbright Bank, when our monitoring systems identify a need for further review, our team manually reviews applications to confirm that a potential account holder is a real person with genuine credentials before opening a new account. While this step may take a little extra time, it helps keep you and your identity safe.

When you link an account to transfer funds into or out of your digital savings account, data encryption hides your banking information to keep it secure. Along with many other financial institutions, Forbright Bank uses Plaid, a secure, third-party partner, to allow customers to link external accounts without revealing any private banking information.

Most online banks provide security features to protect your identity and your funds. Look for a digital savings account that offers multi-factor authentication, banking alerts, and fraud monitoring. Forbright Bank offers all the above and employs a full-time fraud team that is constantly monitoring all transactions for fraudulent or suspicious activity.

If you choose an online bank account that is FDIC insured, like Growth Savings or Growth CD with Forbright Bank, your funds have the same level of protection they would have at a traditional, brick and mortar bank. The standard level of FDIC insurance backed by the federal government covers customer deposits up to $250,000 per depositor, per ownership category.

Digital Savings Accounts Save Money

Digital-first accounts can be less expensive for the customer because they don’t involve the typical expenses associated with physical branch banking. For example, there are no account fees associated with the Growth Savings account.

Because digital bank accounts operate without all the costs of brick-and-mortar locations, they can save customers money on fees and pay higher interest rates than traditional savings accounts. The combination of low fees and high interest rates is a win-win for customers who want to boost their savings.

Digital Savings Accounts are Convenient

The nature of an online account means you can access it easily from almost anywhere with an internet connection.

For example, after opening a Growth Savings or Growth CD account at Forbright Bank, you’ll need to set up an online banking username and password to access and manage your account. Once this is complete, you can log into your account any time with a mobile device or computer and make updates or track your savings.

You can make unlimited transfers with no fees, so you always have access to your money.

Disclaimer: This article is for general information and education only. It should not be considered financial or tax advice.