How to Benefit from Online Banking

If you're new here and would like to be notified the next time I write something, you may want to subscribe to my RSS feed. Thanks for Reading!


If you want to be notified the next time I write something, sign up for email alerts or subscribe to the RSS feed. Thanks for reading.

The major benefit of banking online is immediate access to your accounts anytime, and many financial transactions can be completed simply by logging in. Years ago you had to wait until your monthly statement came in the mail or stop by your bank, to see your activity for the month. With online banking you see activity as it happens. You can make a purchase with your check card, and by the time you get home you see the deduction from your account. You still need to balance your statement but some people feel online banking makes it easier to know their bank balance, especially those who only use check cards and do not keep a checkbook.

Bill Pay, a feature of online banking, simplifies and organizes a chore that many people seem to hate. The only issue is if you pay bills Friday afternoon, during a weekend, or on a holiday it may take more than one day for your payment to be applied. When you select the creditor to pay it shows the quickest date they will receive the money. If you don’t want this date you chose the one you prefer. After entering the creditor, amount and the date, you verify that all the information is correct. The transaction is processed and you receive a confirmation number.

Though it is not a huge savings, bill pay is the most economical way to pay your bills. You save money on envelopes, postage, and the value of your time. Bill pay is usually quicker than the postal service. When you mail a check and it gets lost, it is difficult to prove you even mailed it. With bill pay you have a confirmation number. If there is a problem, which is very unlikely, you have the needed proof. Humor error is a problem for many people. We forget to pay bills on time or to put payments in the mailbox. With bill pay, you can pay all of your bills for the month at the same time.

Bill pay policy varies from bank to bank. Some offer this as a free service while others charge. Typically it depends upon the type of account you have. If you decide to change a payment before it has been deducted, you can usually do that. With some banks you can see what your previous payments where, which is quicker than looking through a check book. Sometimes you can see a list of all your bills and the amounts to be paid for the month. Bill pay has many beneficial features.

With online banking, you can transfer money quickly and easily between all the open accounts at that bank. If you have their credit card, you can either make your payment using bill pay or transfer money from another account. Most banks have a cutoff time, usually late afternoon or early evening, so you need to verify that. If you want to write a check but the funds are not in the account, just do a transfer from another account. Most transfers are instantaneous.

Some customer service functions can be completed on line. You can open new accounts, order checks, request copies of statements and apply for credit line increases. Some banks have automated credit systems. Complete an application, and in a few seconds you will know if you are pre-approved for an installment or personal loan. Mortgage and credit card applications are available on line. Many banks are diversified. You can apply for complimentary products such as life insurance.

Banks are often criticized for excessive service fees. Online banking does not totally eliminate trips to your local bank, but it can reduce the amount of fees charged. Online banking is simple. You do not have to be a computer expert. If you do have a problem, help is available by phone. You do not have to be an organized person, but you do need to have some kind of system. When balancing your statements or using bill pay, try to do it the same time each month, and be sure to keep the confirmation numbers.

The frequent traveler probably benefits from online banking the most. No longer do you have to wait until a statement arrives by mail to see the balance due. In the past, travelers often had late payments because they were away from home. Now they can look up their accounts and make the required payments at their convenience and don’t have to stress over the payments being credited to their accounts on time.

Anyone with a computer can use online banking. If you haven’t done so already, give it a try.

StumbleUpon It!

If you enjoyed this post, make sure you subscribe to my RSS feed!

Related Posts

Filed Under Banking 

Comments

Got something to say?