How Virtual Bank Accounts Work
Virtual banks aren’t rare, and I’m sure there are plenty of virtual financial services, so I’m just going to skip over any discussion of that.
Virtual banks will often bill their customers a monthly fee of between $10 and $30. Most virtual banks will use their own currencies, so the fees aren’t determined by a single currency or bank. Virtual banks can be used to pay friends, or even mail-order goods.
An important note: Not all virtual banks are created equally. I should also point out that you can create virtual banks that operate for months with no activity. This is called ghost banking, because it’s the equivalent of paying with a check at your bank, and then spending the check when you go to an ATM or buy something at your favorite store. Virtual banks can be created with the capacity to just sit idle for months, collecting dust in your virtual bank’s virtual bank account.
If you can pay in virtual currency, it’s cheaper. Most virtual banks cost $0.01 to start. If you’re using the virtual currency of your choice, virtual banks are often one of the cheapest ways to buy or sell.
If you get an extra payment in your virtual bank account, it’s cheaper. If you receive a one-time check in virtual currency, it’s better than a real check. If your bank offers online payments, it’s easier to keep track of virtual checks. If you receive an extra payment in your virtual bank account, it’s easier to make sure you’ve paid your virtual bills. Virtual banks are often very popular with parents, parents-to-be, and friends who don’t want to have to talk about money. I know of a virtual bank that allowed parents to create virtual baby bank accounts for their children. And of course, if you have an existing bank account that you know you don’t need, virtual bank accounts are a very quick way to consolidate it into one.
If you want to really save money, or earn interest, or use virtual currency on something like some new casino sites, you have to do it directly with an actual bank account.
I know what you’re thinking: isn’t paying your bills by mail still cheap?
Absolutely! Mail-order payments are usually free for everyone, whether they use virtual or real currency. And the cost of mailing a check is very low. If you’re going to be paying in virtual currency, mail-order payments can be cheaper, but only if you can use virtual currency. If you’re paying with real currency, it’s easier to keep track of the payments. And for most people, they’re much more convenient. A virtual check can only be delivered once, and it won’t fit in your mailbox.
If you want to make a regular bank account worth paying into, you have to pay $10 in virtual currency, every month. And of course, virtual banks won’t let you bank in foreign currencies.
So what are virtual banks for? And how do I do it?
Realizing that the key to making virtual banks work is for them to be affordable for everyone, most virtual banks will set you up with an account in virtual currency.