Online Banking Basics
By Online Security Authority on Jun 19, 2008 in Banking Security
Banking online is becoming an every day occurence, always be sure you keep your banking information safe.
Most people have heard about online banking, but probably haven’t tried it. You still pay your bills by mail and deposit checks at your bank branch the same way you always have. You might shop online for a loan, life insurance or a home mortgage, but when it comes time to commit, you feel more comfortable working with your banker or an agent you know and trust. And why not? How safe is banking online? Online banking isn’t out to change your money habits. Online banking uses today’s computer technology to give you the option of bypassing the time-consuming and paper-based ways of traditional banking, in order to manage your finances more quickly and efficiently.
With the advent of the Internet and the popularity of personal computers, the banking industry realized an opportunity and to bring their customers more services and find new revenue streams. For many years financial institutions have used powerful computer networks to automate millions of daily transactions a day, and today the only paper record is the customer’s receipt. Now banks customers are connected to the Internet, banks envision similar economic advantages by adapting those same internal electronic processes to home use. Banks view their online services as a “value added” tool to attract and retain new customers. Not only does this help in retaining customers, but it helps to eliminate paper handling and teller interactions.
Banks are finding more ways to service their online customers by offering online banking services. The challenge for the banking industry has been to design this new service in a way that its customers will be able to easily learn to use it and trust that their information will be safe. Most large banks now offer secure, functional online banking for free or for a small fee. Some small banks wanting to offer services like the big banks have found ways to cost effectively offer access and functionality; for instance, you may be able to view your account balance and history but not initiate transactions online.
As more banks succeed online and more customers use their sites and services Internet banking will become as commonplace as automated teller machines.
What Are The Advantages of Online Banking?
Convenience: Unlike your corner bank, online banking sites never close; they’re available 24 hours a day, seven days a week, and they’re only a mouse click away.
Ubiquity: If you’re out of state or even out of the country when a money problem arises, you can log on instantly to your online bank and take care of business, 24/7.
Transaction speed: Online bank sites generally execute and confirm transactions at or quicker than ATM processing speeds.
Efficiency: You can access and manage all of your bank accounts, including IRAs, CDs, even securities, from one secure site.
Effectiveness: Many online banking sites now offer sophisticated tools, including account aggregation, stock quotes, rate alerts and portfolio managing programs to help you manage all of your assets more effectively. Most are also compatible with money managing programs such as Quicken and Microsoft Money.
Online Bank Services Offered by Most Banks
General Information:
Access your account information
Update your personal information
Access your consolidated statement
Download your account transaction history information
View your account transaction history
Print a screen from PenFed Online
Sort your transactions on the account activity screen
Transfer funds between accounts
Deposit Accounts:
Initiate a stop payment on a check
Request a Regular Share Account withdrawal check
Re-order checks
Loans:
Apply for a loan
Check the status of a loan application
Make loan and line of credit payments
Credit Cards:
Access your credit card statement
Credit Card Cash Advance
Activate Additional Services:
E-mail Statement Notification
Home Deposit Service
Bill Pay Basic
Bill Pay Premium
Bill Pay Basic:
Features
Tutorial
Frequently Asked Questions
Help Desk:
System Requirements
Security
Common Errors
Reporting Errors
Contact Information
What Are The Disadvantages of Online Banking
Start-up may take time: In order to register for your bank’s online program, you will probably have to provide ID and sign a form at a bank branch. If you and your spouse wish to view and manage your assets together online, one of you may have to sign a durable power of attorney before the bank will display all of your holdings together.
Learning curve: Banking sites can be difficult to navigate at first. Plan to invest some time and/or read the tutorials in order to become comfortable in your virtual lobby.
Bank site changes: Even the largest banks periodically upgrade their online programs, adding new features in unfamiliar places. In some cases, you may have to re-enter account information.
The trust thing: For many people, the biggest hurdle to online banking is learning to trust it. Did my transaction go through? Did I push the transfer button once or twice? Always print the transaction receipt and keep it with your bank records until it shows up on your personal site and/or your bank statement.
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