09/ 02/ 2004
by Jeffrey Moses
Depositing cash, taking out cash, purchasing money orders and various other banking activities require a visit to the bank. But many other banking activities can be done quite efficiently and safely using a bank's online services.
Using the services provided by a bank's Web site can save time, help you keep up-to-date daily or even hourly with your account information and perhaps even broaden your financial tools. Recent improvements in online security have won over consumers, and people are banking online more today than ever before.
The online services offered by banks vary tremendously. Some allow only the checking of account totals, while others allow a wide array of banking activities, including online bill paying (recurring and one-time), transferring money between accounts (even into retirement funds), stock purchases and personal consultation with financial experts. Many online banks include on their site free financial tools such as stock-quote checking, tax software, money-management software, mortgage calculators and others.
When setting up an account with an online bank, or when choosing a brick-and-mortar bank based on its online presence, make sure that the online capabilities offer all you need, now and for the future. Ideally, an online bank should allow you to expand usage as your needs become more sophisticated.
The advantages of online banking include:
- Access to account information and some banking activities from home or when traveling
- Comprehensiveness of services, wrapping all your banking needs into one Web visit
- 24/7 availability of checking account balances and other services available
- Competitive or improved interest rates for loans, CDs and other investments
Some people are wary of completing all banking transactions online without a paper record. Even for the sophisticated and trusting, it's wise to print out a record of each transaction you make online. Note confirmation numbers for transactions, dates and exact dollar amounts, and print out the final summary screen of a transaction before moving to a new transaction or Web site. If anything should go awry, the printout will serve as your validation of the transaction and the amounts involved.
Also, check your online activities against your monthly or quarterly mailed bank statements. This will allow you to double-check your figures, avoid unwanted recurring payments and make sure that all cash deposits have been recorded accurately.
There is always a learning curve when starting to bank online. Each bank's site is different and presents varying degrees of difficulty for new users. As always when learning new software, access only the features you need. Don't try to learn everything about the software at once -- some of the features you may never use. If you can't figure something out, call the bank to be referred to someone who can help walk you through the process.
Difficulties can arise for online users when the bank "upgrades" its site. You may find that everything you once understood has been changed. Familiar features may be hidden in new sections of the site or changed altogether. If you have difficulty, contact the bank to get help.
One of the biggest problems can occur when banks merge. Sometimes during or after a merger, the online banking services change dramatically or cease altogether for some time. When you receive notification of a merger or sale of your bank, pick up the phone and ask how the bank's online services will be affected. If you can't get a straight answer, suspend your online activities for a month before the merger so your records won't be inaccessible until everything is smoothed out.
