Online banking is the practice of making bank transactions via the Internet. It will give you an excellent opportunity to bypass the time-consuming, paper-based aspects of traditional banking in order to manage your finances more efficiently.
By switching to electronic bills, statements, and payments, the average American household can save 6.6 pounds of paper in one year! And you can catch any fraudulent transactions faster than if you received a statement by snail post.
payment service allows a depositor to send money from his or her online account to a creditor or merchant, for example to a public utility or a department store. There is no need to stand in a long line on a weekend morning to handle your transactions! The payment is virtually instant, though some financial institutions can wait until the next business day to send out the payment. If it is necessary, the bank can generate and mail a paper cheque or banker's draft to a creditor who is not set up to receive electronic payments.
2. Schedule payments in advance.
Most banks offer customers the ability to schedule a payment on a specified date. Once the amount is entered and the payee is checked off, the funds are automatically deducted from your online bank account.
It is especially useful if you always forget due dates. For example, you can schedule credit card or mortgage payments to make sure that you will not incur late fees and damage your FICO score.
3. Transfer funds.
Do you want to send money quickly and securely? With online banking, you can make money transfers between your own accounts, or send money to a third party account. All you need is recipient/payee information and enough funds in your account. Quite often, the operations are performed in real time.
4. Manage all your accounts in one place.
Online banking is a great time saver because it provides an opportunity to handle several bank accounts (checking, savings, CDs, IRAs, etc.) from one site. Most new accounts you open will be automatically added to online banking.
5. View images of your checks online.
Do you need a copy of a paid check? With online banking, you can view and print scanned images of the front and back of all checks you have written. It is easy and convenient.
6. Apply for a loan or credit card.
Having an account online, you can apply for a credit card or a loan (a car loan, a student loan, a mortgage, a home equity loan, etc.) from the same bank. If you have a good credit score and long relationship history with your bank, your application is likely to be approved.
7. Purchase and manage CD accounts.
If you have some amount of money you want to invest, you can purchase a certificate of deposit from your bank. Online banking lets you compare all available offers and their terms, for example APY or maturity periods. When you confirm the purchase, the funds will be automatically deducted from your account.
8. Order traveler's checks.
You can order American Express Traveler’s Cheques online. The bank will typically charge your online account for the amount of the cheques you bought and an express delivery fee.
9. Increase your overdraft.
Going into the red shouldn't leave you red-faced! You can increase your overdraft online. Log in to online banking and click on 'Overdraft' in the menu.
10. Order a cheque book.
Save yourself at least one trip to the bank by ordering cheque book online. You will need to visit your bank once when you get a confirmation message that your cheque book is ready for collection.
11. View up-to-the-minute account statements and balance.
There is no need to wait for the bank statement to arrive in the snail post to check account balances. You can view all transactions and withdrawals every day just by logging in to your online account. In addition, you can immediately notice errors or unauthorized transactions in the statement.
12. View automatically updated spending report.
All your purchases are sorted into familiar categories automatically - no receipts to save, no expenses to enter. It is easy to see where your money goes!
13. Track your payment history.
Online banking gives you an opportunity to search your payments by transaction type, date, description or amount. When did you last pay Company X? When did you buy your computer? To whom did you make your most recent payment? Your bank knows the answers.
14. Integrate the data with personal finance programs.
Online banking lets you import electronic payment data in personal finance software such as Quicken or Microsoft Money. You will be able to access your online accounts directly from your personal finance program. An Internet connection and online account log in information is required.
15. Change contact details.
Have you moved to a new house? Changed your telephone number? You can log in to your online account and change contact information (e-mail address, telephone number, password, etc.). It is more secure than to send this information by e-mail.
16. Utilize investment research.
You can receive real-time quotes, analytics, news and stock market information to make a more educated decision.
17. Take advantage of online brokerage.
Internet banking lets you invest online. You can place and confirm trades 24 hours a day, seven days a week. Most banks provide a wide range of money market instruments from various issuers.
18. Get alerts.
This service allows you to receive timely e-mail messages from your bank about any critical changes related to your Internet accounts. For example, you can get alerts when you make a withdrawal or change your contact information.
19. Verify terms and conditions.
Did you forget your interest rates or payment due date? You can verify all information about your account online.
20. Chat with your customer assistant department.
If you need help, you can send message to your bank’s customer assistant department. They will help you solve your problem.