Banking has never been easy, thanks to the internet! You can bank and conduct other money transactions at the comfort of your house, any day, any time. You only need an internet connection on your smartphone or laptop. Gone are the days where you had to physically appear at the bank to receive banking services.
Online banking is also known as web or internet banking. Most banks have some form of online banking catering to clients.
Who can use online banking services?
Anyone who owns an account with their preferred banking provider is eligible for online banking. If you rarely use cash or seldom visit your local bank, you are strongly encouraged to run an online bank account.
Online bank accounts are also a safe option to save your emergency funds because you can easily access your money. Additionally, the interest rate is client-friendly. Such terms are readily available at east texas federal credit union.
Understanding internet banking
Once you have an internet connection on your phone or desktop, you’re good to go. Next, you’ll need your bank account or a credit card because it has your essential details. You’ll also need to create a password for your online banking account.
You can enjoy more services by installing your bank’s smartphone applications. The online services you can conduct include
- paying all your bills
- check balances in various accounts
- download transaction statements
- open new accounts
- apply for demand drafts
- update your addresses as the need arise
Advantages of online banking
This is the first and major benefit of online banking. You can pay your bills without having to visit the service provider in question. Online services are available for 24 hours. You can avoid the inconveniences of losing the connection of your utilities by authorizing payment from the comfort of your home, office, or on the go.
Most banks have a platform where you can list all your payees. You’ll initially need to fill in their details once and only click at them when paying the bills for that particular firm.
Further, the bank enables you to set an automatic payment mode where you pay the same amount every month. This is an ideal option for making insurance, car, loan payment because the amount in question is constant throughout.
2. Track your transactions
Online banking allows you to check your transaction history from anywhere. It is the quickest way of confirming if a transaction has cleared your account.
This service helps you to notice any unauthorized transactions in your account. Therefore, you can raise a concern with your banking provider as soon as you notice the anomaly.
Most banks also notify clients of any pending transactions. If there’s a transaction you left incomplete in the last 24 hours, you’ll be notified and requested to choose to complete or pend it.
3. Transfer money across accounts
This is a quick way of transferring funds from one account to another. It’s more convenient than physically going to the bank or initiatingautomated phone services.
Same bank different account transfers can take up to 24 hours or less. Transferring funds across different accounts can last a few days, though various banks have different timelines for this service.
4. Ease in banking your money
You only need a mobile app to access your account. You can pay and confirm your account status to avoid overcharge by a merchant. You can also check your accounts so you don’t overdraw when shopping.
Today, several banks allow clients to deposit cheques via mobile apps. You only take a clear photo of the endorsed back and front view of the cheque.
5. Lower costs
Traditional banking had several hidden charges on a client’s account. Online banking allows an individual or business to keep track of their charges from their smart devices.
Ordinarily, when you engage a particular service, a follow-up message pops up to inform you of the charges applied to a particular service. As such, you can weigh your options to proceed with the transaction or not.
Disadvantages of online banking
Some people prefer face-to-face services offered at their local branch. Most of them find online services a challenge to operate or are limited by online services in the following ways.
- Limited cash amounts
Online banking has a limit of how much one can transact in 2 hours. While you can withdraw a given amount from the ATM, one must still walk to their bank cashier to top up the amount they need.
- Security risk
The internet can easily be manipulated to gain unauthorized access to the clients’ account. However, online security has been enhanced to reassure clients of their money’s safety. As a precautionary measure, one should avoid using public WIFI and only use personal data on their devices.