The internet has come a long way sinceitsinitial conceptionand,over the pastfewyears,we’ve seena whole wealth of usefulthings crop up– not least, online banking.
If you’ve not yet taken the plunge and started banking online,you’re missing out on a whole host of useful features.Keep reading to find out the top6benefits to online banking.
Whether you choose to bank on an app or website, there are loads of great benefits. Think aboutnot actually havingto waste ages queueing for assistanceandhaving more control and easy access to your finances.That’s just the start! Check out our top6benefits:
1. Access your account 24/7
One of the biggestadvantages of online bankingis that you can access your account 24/7, wherever you are.As long asyou have an internet connection,you can log on and check your finances– sonot only can you do itwhileyou’re on holiday or out shopping, but you also won’t have to worry about bank opening timesor leaving your home when it’s not convenient.
2. Bank on your phone or tablet
You don’t have to sit up at a computer to get started with banking online – you can do it from your phone or tablet, too.Most banks’ websites are adapted for mobile, meaning it’s easy to use your favourite device to get online.What’s more, if you’re concerned about missing out on the personal interaction,support is usually clearly signposted,allowing you to live chat or ring through to the department you need.
3. It's quick and easy
A hugeadvantageto online bankingis just how quick and easy it is. Whether you’re using an online app or loggingonto a website, itcompletely eliminateswaiting in line at the bank. Youcan do everything from the comfort of your own home, including applying for credit cards and loans, as well as yourday to daybanking.
4. Keep on top of your finances
Online banking means you’ll be able to keep on top of your finances farmore easily. You’ll be able to check your balance quickly, view your transactions and know exactly what’s going out and when,as well aslook at historical payments to make sure they’re cleared. Additionally, it’s easier to check for any unauthorised purchases, so you’ll be able to flag these as soon as you notice them.
5. Pay bills and make payments
Gone are the days of lengthy forms and having to post cheques to pay bills. One of the keybenefits with online bankingmeans you can pay all your billsor make paymentsthroughyour bank’swebsite.You can set up direct debits, standing orders,and even send money to friends and family members.It doesn’t get more convenient than that.
6. Transfer money between accounts
With an online bank account, transferring money between accounts couldn’t be simpler.This may be a particularly great benefit if you have a savings account and find yourself frequently having to transfermoney between the two. All you’ll have to do is log on to your banking anddo it yourself, you don’t have to worry about going in branch or phoning someone to do it for you.
Now you know thebenefits to online banking.If you’re still a bit apprehensive about banking online, check out our guide onhow to protect yourself from online fraud, next.
FAQs
Online banking customers enjoy instant access from their computer or mobile device to a full range of services, allowing you to: Check balances on accounts and view records of your transactions. Pay bills automatically each month with easy-to-set-up auto payment. Transfer funds between accounts.
What are the benefits of online banking? ›
Online banking customers enjoy instant access from their computer or mobile device to a full range of services, allowing you to: Check balances on accounts and view records of your transactions. Pay bills automatically each month with easy-to-set-up auto payment. Transfer funds between accounts.
What is one main benefit of online only banks? ›
Final answer: Access to fee-free ATMs, viewing statements online, and higher interest rates are key benefits of online-only banks.
What is the importance of having an online banking account explain? ›
Convenience Guaranteed
While easy access is one of the many benefits of online banking, it also makes banking highly convenient. The need of waiting in long queues at the bank is completely eliminated. Moreover, with mobile banking option available for most banks, transfers and payments have become easier.
What are three pros and three cons of online banking? ›
The Bottom Line
The pros include higher yields, lower fees, and high-tech features that help with account maintenance and budgeting. The cons include more difficult access to customer service, as well as online security concerns. Ultimately, you have to decide what's right for you.
What are the 4 benefits of banking? ›
- Your money is safe. ...
- Your money is protected against error and fraud. ...
- You get your money faster with no check-cashing.
- You can make online purchases with ease and peace.
- You have access to other products from the bank. ...
- You can transfer money to family and friends with.
- You have proof of payment.
Online banks are safe and offer competitive interest rates with few fees. They're a great option for many people, but it ultimately depends on how you prefer to bank. Online bank features may especially benefit users who have low checking or high savings account balances. Do online banks have ATMs?
Why do people prefer online banking? ›
Before choosing an online bank, it's important to decide what features are most important to you. The lack of overhead gives internet banks advantages over traditional banks, including fewer or lower fees and accounts with higher APYs.
Why choose an online bank? ›
Pros. Convenience and easy account access 24/7 from anywhere via online or mobile app. Typically fewer fees, as online banks that offer these accounts tend to have lower operating costs. Some online banks offer more competitive interest earnings that can yield a larger return on your balance.
Why should I use internet banking? ›
Aside from the convenience and security of online fund transfer services, e-banking allows you to manage and track your transactions as they happen. After opening an online bank account, waiting in long lines or losing track of your financial statements can become problems of the past.
More control — any time of day
That's the convenience of digital banking. View your current balances (to avoid any minimum balance penalties), transfer money between accounts, and easily apply for new accounts or credit cards online — all without having to drive to a branch or visit an ATM.
What is online banking in simple words? ›
Internet banking, also known as online banking, e-banking or virtual banking, is an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution's website.
What does online banking allow you to do? ›
Access your accounts online
Online and mobile banking usually let you: view your accounts, including savings, credit cards, mortgages, loans and investments. pay bills and transfer money to other accounts. set up or cancel regular payments, such as Direct Debits and standing orders.
Why is online banking safer? ›
Online banks take various precautions to keep your money safe, including FDIC insurance, data encryption, multi-factor authentication, and more. Determine whether a bank is legitimate using the FDIC's database. Check for complaints with the CFPB, reading online reviews, and researching the bank's security features.
What does a person may use online banking to do? ›
Online banking transactions vary from one financial institution to another. Most banks generally provide essential services such as electronic transfers and bill payments. Some banks even let you set up new checking or CD accounts or apply for credit cards through web portals.
Why switch to an online bank? ›
Lower fees, higher interest rates
By operating only online, many online banks don't have to pay the overhead costs to maintain a physical branch. This allows them to pass on the savings to customers in the form of lower fees and higher interest rates.
What are internet banking's advantages and disadvantages? ›
Internet banking have some advantages over traditional banking because there is less extra costs. This means they can offer accounts with lower fees and higher APYs. However, internet banking might not have personal connections, their own ATMs, and may provide fewer services.
Why is online banking better than in person? ›
Pros of online banks
They generally charge lower fees or no fees, including for overdrafts, for their products and services. They typically pay more interest on deposits. Online banking is a big time-saver that lets you avoid trips to the bank and waiting in drive-thru lanes or lobby lines.
What are the positive and negative effects of digital banking? ›
The advantages of digital banking include convenience and time-saving, while the disadvantages include security risks and potential fraud. Advantages: Quick, secure, and cost-effective banking transactions, improved customer service. Disadvantages: Potential decrease in the number of bank personnel.
What are two good reasons to not use online banking? ›
- Customer service lacks personal touch.
- Not an option for those lacking access to the internet.
- ATM options may be limited.
- Greater due diligence required to vet the bank.
