These days, almost every bank offers some form of online banking solution for its customers, with some banks (like ING DIRECT USA, who I use) being completely online. With so many different options available, anyone can do most of their banking on the web. Almost every individual or entity can benefit from using an online bank.
Convenience is touted as the main benefit of using online banks, but it’s far from the only one. There are numerous reasons to use online banking, from saving money to being more environmentally friendly. Below are 9 factors to consider when deciding to use traditional or online bank accounts.
- Convenience – By accessing your bank account online, you can manage your banking activities whenever you want. Onlinebanking can be accessed 24/7/365, so you will be no longer be tied to the branch’s hours. On top of that, you don’t have to take the time to travel to the branch and deal the inevitable lines, thus giving you much more time to deal with more important matters.
- Mobility – Online banking can usually be managed from anywhere, as long as you have an internet connection. Even if you’re away for work or on a vacation, you can take care of your banking needs. Some banks, like Bank of America, have even developed mobile applications that make banking a lot easier for those having a Smartphone like the Apple iPhone or iTouch or a Blackberry. With this added mobility, you’ll no longer have to worry about time sensitive banking activities.
- No Fees – Because an internet bank does not have to worry about dealing with the overhead of a brick and mortar location, many times fees are lower and are often non-existent. Those savings and checking accounts offered by completely online banks (like ING DIRECT USA
) generally have no fees at all. Depending on the fees associated with your current bank, you could possibly save a substantial amount of money.
- Higher Interest Rates – Once again, due to a lack of overhead, online banks frequently offer higher interest rates than traditional banks.
- Online Statements – Most internet banks try and be as paper-free as possible. Most statements and correspondence is carried out on the internet, which reduces the amount of paper sent through the mail. Not only does this further reduce operating overhead, it also has a positive environment impact. Rather than generating tons of paper, online bank account users can just save their monthly statements to a disc or download them only as needed.
- Direct Deposit – Most online banks encourage, if not require, direct deposit of your salary. While direct deposit can be uncomfortable at first for some people, the advantages far outweigh the disadvantages. Not only do you save the time and effort of going to the bank but you also get access to your money faster. Depending on your employer and bank, you may get access to your income as early as midnight the night before your payday.
- Automatic Bill Pay – Automatic bill paying allows you to automate paying your monthly bills. Not surprisingly, you have to set this up manually – which can take some time, however it will be worth it in the long run. It not only ensures that you’re never late on a payment, but it also lets you hold on to your money longer in many cases. It also saves you money on postage and reduces the environmental impact that sending things through traditional mail makes.
- Real Time Account Info – Since you’ll be able to access your accounts anytime, you can get up-to-the-minute information on your accounts. This may enable you to better manage your income and gain the most from various accounts, interest rates and services offered by the bank.
- Transfers – Online transfers between accounts within the same bank are often accomplished virtually instantaneously. Even transferring to other financial institutions is less difficult, and safer as you don’t have to send checks through the mail or carry cash with you.
Hopefully the 9 benefits above will help you realize just how great online banking can be. As I mentioned in the article, I highly recommend ING DIRECT USA. I have had an account with them for years and they are amazingly easy to work with and very responsive to questions and issues that arise. Check them out!
