Benefits of Online Banking

More and more financial institutions are offering online banking to their customers, with some banks being completely online. With so many different options available, anyone can do most of their banking online. Both businesses and individuals can benefit from changing their accounts to the online variety.

Convenience is touted as one of the major advantages of banking online, but it isn’t the only one. There are many reasons to bank online, from saving you money to being more environmental in your way of life. For some reasons to consider banking online, here are nine benefits to carrying out your banking activities online rather than within an actual bank.

  1. Convenience – By banking online, you can carry out your banking activities whenever you want. Online banking is a 24 hour service, so you are no longer tied to the branch’s hours. On top of that, you don’t have to take the time to travel to the branch and wait in the inevitable lines, thus giving you more time to do what you want.
  2. Mobility – Online banking can be done from anywhere, as long as you have an Internet connection. Even if you are away for business or a vacation, you can still take care of your banking needs. Some banks, such as Bank of America, have even created mobile applications that make banking easier for those with a Smartphone like the Apple iPhone or iTouch or a Blackberry. With this added mobility, you’ll no longer have to worry about missing a payment or any other time sensitive banking activity.
  3. No Fees – Because an online bank doesn’t have to worry about funding an actual bank location with all of those additional costs, fees can be reduced and are often non-existent. Those checking and savings accounts that are offered by completely online banks usually have no fees at all. Depending on the type of account you currently have, you could be saving anything from $60 a year and up.

  4. Higher Interest Rates – Again, due to a lack of costs associated with running an online bank, higher interest rates are often offered for their accounts. For higher interest rates, you would usually need to bank with a completely online account.

  5. Online Statements – Most online banks try to be as paper-free as possible. Most statements and correspondence is done online, reducing the amount of paper used and sent out to you. This again will help reduce the costs of the online bank. As an added bonus, this makes online banking a great environmental choice. Be warned, some banks do charge if you do want a paper copy of something.
  6. Direct Deposit – With any incoming money, such as your salary, you can arrange for it to be directly deposited into your bank account by the company sending the money. This is actually a double benefit, as you don’t have to take the time to deposit the check, plus the money goes into your account faster allowing you to earn interest that much quicker.
  7. Automatic Bill Paying – With automatic bill paying, you can automate paying your monthly bills. Of course, you need to set this up, but it will be worth it in the long run. First, with your bills being paid automatically, you shouldn’t ever miss a payment. Plus, by not having to worry about the time taken to mail in your payment, you can keep your money in your account for a bit longer, earning you a little bit more interest – and you save on postage too. Finally, you can actually do away with using checks and you also save on paper used, making this a much greener way of banking also.

  8. Real Time Account Information – Because you can access your accounts anytime, you can get up to date, real time information on the money in your accounts. This will allow you to better manage your money and gain the most from different accounts, interest rates and services provided by the bank.
  9. Transfers – Transfers between accounts with the same financial institution online can be done almost instantaneously. Not only is there no hold on the money being moved around, you can do it whenever you like and from wherever. You also save time on travelling to the local branch. Even transferring to other financial institutions is easier, and safer as you don’t have to carry the money around with you. You can even now e-mail money to and from other people with INTERAC e-mail money transfers.