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The Many Perks of Banking Online

This is a guest article by Brandon Watts.  If you are interested in contributing to Debt RoundUp, please follow our guidelines.

Learn How to Use Online BankingOnline billing, invoices, statements, summaries… Increasingly it would appear that the whole world is being encouraged to manage their personal finances online including banking with online savings accounts.

Why? Well clearly there are benefits on both sides of the equation. For businesses, they’ll be able to reduce certain overhead costs. This could be simply powering the printer whose job it has formerly been to get paper out to customers, or admin staff who oversee this operation. Let’s not forget that mailing statements can be a cost intensive exercise, too.

Going online – or digitally emailing financial statements or reports – is quicker too. This means the business doesn’t have to worry about complaints from the loss, or delay, of information sending in the post.

The process for them is automated too. So with a click of a button, personal information can be sent at any time through an encrypted line – as it were. Again, this isn’t the same as the post, which is delivered during the day – if it arrives at all.

So, from a business point of view, by starting online business savings accounts companies are saving time, money and ensuring the recipient gets their communication directly and securely. What then does a consumer get?

Taking the example of services available from an online bank or savings provider, the benefits could be as follows.

Convenience

Checking your balance, managing your payees or transferring funds with your online banking account is convenient in a number of ways.

The devices you are able to do all this business on is just one major benefit of an online account. As you probably well know, you can access online accounts via more than just a PC nowadays. There are also smartphones and tablet computers for example.

Furthermore you can access your banking from any person’s computer, laptop, smartphone or tablet. While the same might be true of cash machines, sometimes these charge you for withdrawals. To some extent, you might also find it easier to get your hands on a digital device to check your account than actually seeking out an ATM or bank branch. This is particularly true for those who live in rural areas.

You can also access your online account in your own time, free from the restrictions of an everyday branch. If you’re desperate to check your account at midnight then, you can. There’s no need to wait for the bank to open and rush down in your lunchtime.

Ease of use could similarly be argued. Why fill out forms and bring ID to a branch when all you need to do is log on, securely, and carry out all your transactions in one easy-to-use and manageable place?

Rates

It’s also feasible that you’ll be entitled to better rates or discounts when you opt for an online account. Many savings providers and banks offer their best discounts online – just like your regular high-street retailer. They normally do so for limited periods only and the race to sign up can be feverish.

As is the case with many kinds of online account, it can be easy to change or upgrade to another kind of account too.

Author Bio: Brandon Watts is a research student in Accounting & Finance, I am keen to keep myself updated about anything and everything related to business & finance. During my free time I love to play squash, experiment in my kitchen and blog about random things which I like to share with people!

Photo via trenttsd


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Leave a Comment:

21 comments
Michelle says January 3

I don’t bank online yet. I feel like I’m so behind!

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    Grayson says January 3

    Really? That is all I do. I rarely go into a branch unless I receive a check. My phone deposit app doesn’t take a quality picture, so they never accept it.

    Reply
    Glen @ Monster Piggy Bank says January 4

    I thought everyone in this day and age used online banking. Is there any reason why you haven’t moved to online?

    Reply
      Grayson says January 4

      Oh, I am almost fully online, but this article is geared to those who haven’t made the plunge yet. There are some out there, which surprised me.

      Reply
    Catherine says January 4

    Wow, I sort of thought everyone did!

    Reply
      Grayson says January 4

      So did I, but after digging around, I found out that is just not the case.

      Reply
John S @ Frugal Rules says January 3

We do virtually all of our banking online. It’s just too convenient for us not to. If it were not for us withdrawing cash then we probably would never go to an actual brick and mortar branch.

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    Grayson says January 3

    I completely agree. I only go to the bank maybe one time a month if that.

    Reply
Chris @ Stumble Forward says January 3

My wife and I use online banking and it’s so much easier than paying bills and tracking are spending the old way. I also like it because it allows me hook up my Mint account to it as well and track my budget as well.

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The Happy Homeowner says January 3

I couldn’t imagine NOT banking online at this point! I recently starting using various iPhone apps for tracking transactions, etc and I absolutely love the convenience of doing so

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    Grayson says January 3

    I agree with you, but there are still many people that don’t bank online. I am interested to see what would happen in the banking industry if more people stopped using the branches. Would every bank be just like Ally or ING?

    Reply
Tackling Our Debt says January 3

We do 99% of our banking online as well, both for personal and our business. Been doing it for so long I can’t imagine not doing it. Although I do remember bank books and the days when we had to go to the bank for everything. I remember the first drive thru teller at our bank was an actual person and not the machines we have today 🙂

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    Grayson says January 3

    Those were the old days now if you think about it. Everything is so much easier to do online!

    Reply
Canadian Budget Binder says January 3

I haven’t stepped foot into a real bank in Canada since the one time we went in to get a line of credit set up. We bank online and Mrs.CBB has been for years upon years and has not really needed to physically go in a bank. We have no fees with our bank and our cheques are free. The ease of being able to do it all from the internet has made it even better for us. I don’t see us switching any time soon. Mr.CBB

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    Grayson says January 3

    I am just wondering how long it will be until everything is done online. Will we even need branches anymore?

    Reply
Pat says January 3

I love online banking! It makes everthing automatic and reduces stress. The only time I go to the bank is to sign agreements!

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    Grayson says January 3

    I love online banking as well. Thanks for stopping by Pat to share you thoughts.

    Reply
Brett @ wstreetstocks says January 4

Great article, I always use online banking. It’s so much easier.

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KK @ Student Debt Survivor says January 4

I love online banking. I only recently signed up for an ING direct account and it’s wonderful. I don’t even have to leave the comfort of my couch to cash a check (just take a photo). Love, love, love!

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    Grayson says January 4

    Yeah, my credit union allows me to scan checks or use their mobile apps. Some business checks that are long don’t work on the mobile app, so I have to scan them in.

    Reply
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