The vast majority of financial institutions now provide customers with the option to do banking activities, such as paying bills, transferring funds, and viewing the history of their checking account transactions, online through a web browser.
When it comes to your personal finances, having the ability to perform banking tasks from the convenience of your couch at any time of the day or night makes everything a little bit simpler. Here are five reasons why you should consider using internet banking.
You can now pay your bills online
One of the benefits of using online banking is that it allows you to bank from the comfort of your own home.
When you pay your bills on the website of your bank instead of sending a check in the mail, you won't have to worry about your check getting lost in the mail. The majority of banks have a section in which customers can establish payees.
You will only have to fill out the information needed to register that payee once, and then you can select them automatically whenever you need to make a payment.
You can set up a recurring automatic payment with the majority of banks, which will be for the same amount each month. When it comes to expenses that remain the same from one month to the next, such as a car payment or an insurance premium, this function is very beneficial.
You also have the option of authorizing a payee, such as a mortgage or electric utility provider, to automatically deduct the amount of money you owe from your account. You can set up the automatic deduction by visiting the website of the company and creating an online log-in if you haven't previously done so. If you have already done so, feel free to skip this step.
After that, you will be required to navigate to the section of the website that is devoted to billing or payments and then clicks on a link that is labeled as being associated with automated payments.
You will be required to supply the number of the checking account that you want the money to be debited from, in addition to the routing number that is associated with your bank.
When you allow the payee permission to deduct from your account, control over the payment is transferred from you, the payer, to the payee, the vendor. It is advisable to set up a recurring payment from your bank account to make sure you are paying only what you owe.
View Your Transactions
Thanks to online banking, you are able to access the history of your account as well as the transactions from any location. This is the easiest way to see whether a transaction has cleared your account. You will also be able to find out about any fraudulent transactions far more rapidly, giving you more time to contest them once you discover them.
Many banks will show you your pending transactions. These are transactions that began on the current business day or after the close of business on the previous business day and therefore have not yet been completed.
Pending transactions may not reflect the precise amount of the purchase. For example, if you pay a bill at a restaurant using your debit card, the tip will often not be reflected in the amount of the current transaction. After your bank has given its approval for the full payment, the whole amount, which includes the gratuity, will be reflected in your account. 3
Move money from one account to another
When you do it online, you can swiftly transfer money across accounts. It is more convenient than utilizing an automated phone service or traveling to a bank in person, both of which require you to enter information when requested.
If you are moving money between different types of accounts at the same bank, the transfer should go through on the same day.
It is possible that the process will take up to three days when you are transferring money to an account held at a different bank.
If you are trying to save money for more than one thing at a time, such as a down payment on a house and the cost of a wedding, you might think about opening numerous savings accounts so that you can quickly move money from your checking account into each of the savings accounts.
It is typical for savings accounts to have lower minimum balance requirements than checking accounts, and some financial institutions do not require a minimum balance at all for savings accounts. This means that you will not be required to begin with a large sum of money.
Utilizing a Mobile Application, You Can Bank on Your Phone
The majority of financial institutions now provide their customers with mobile apps that make it simpler to use internet banking on their mobile devices. When you are out doing your shopping, you have the ability to perform a speedy check on your accounts, move funds to prevent yourself from going into an overdraft, and verify that a retailer has not double-charged you.
You may often deposit checks through banking applications by utilizing the camera on your mobile device to take a photo of the check's front and back, both of which must be endorsed. In most cases, you will also be required to write on the back of the check something along the lines of "For mobile deposit only at [name of bank]."
Make sure that you are using your banking app on a safe network; if you don't want your private information to be compromised, you should never use public Wi-Fi to access the app.
Sync with the applications you use for your budget
The information from your online bank account may be synchronized with a number of different budgeting apps, including Mint and PocketGuard. That feature allows you to stick to your budget much easier.
If you have a spouse or partner with whom you share bank and credit card accounts, you might want to check into downloading an app that makes it simple to synchronize your information with that of your spouse or partner.
Apps like Better Haves, HomeBudget, and Honeydue are all examples of personal finance management software that is tailored exclusively for couples or families.
Questions That Are Typically Asked (FAQs)
What types of bank accounts are available to online banking customers?
The various sorts of accounts that a bank makes available will vary from institution to institution. The most common services provided by banks that are solely accessible online are checking and savings accounts.
However, some of these banks may also provide certificates of deposit, money market accounts, investment possibilities, and loans. When you bank with a traditional bank that also offers online banking, the traditional bank will typically let you access their complete range of services through their website.
Is online banking safe?
As long as you exercise caution, banking online is a perfectly safe option. You should never access your account from a public computer or wifi hotspot, and you should always use a password that is both unique and tough to figure out.
The use of two different authentication methods can make it significantly more difficult for an unauthorized user to access your account. Also, be wary of who you grant permission to access your phone if you make use of a banking application.