December 17, 2020
This Is How You Can Make the Most Out of Online Banking
Online banking offers a certain level of security and convenience for your financial life that is seldom found in a typical brick-and-mortar bank. Read further to learn more about what online banking is and what it may offer you.
What Is Online Banking?
Online banking enables you to carry out transactions with the help of the internet on your mobile device or tablet. With an online bank account, you can opt in to go paperless, check your balance at any time, and set up direct deposits with other institutions in order to have quicker access to your income, all of which can be performed safely and securely.
Save Money on Paying Your Bills
In our day-to-day lives, we naturally have to juggle a wide variety of bills, from the electric bill to our mortgage. An online bank account will allow you to pay these bills all in one location. This way, you don’t need to go to your electric company and then drive over to your landlord’s house; rather, online bill pay takes care of this for you. Additionally, most financial institutions that use online banking will guarantee that your payments arrive where they are meant to and arrive on time.
On top of the convenience of having all of your bills paid in one location, most businesses offer a discount for paying with online bill pay.
Make Money Transfers
Opening up an online bank account allows you to transfer money to another’s account with little more than an email address or a phone number. The only thing you need is access to the internet. In other words, you do not have to go in person to a money wiring service. Most online banks allow you to send money via the internet either internationally or electronically.
All online bank websites offer sophisticated, high-security encryption, so you never have to worry about your hard-earned dollars getting lost or ending up in the wrong hands.
Avoid Fees for Overdrawing Your Checking Account
Each online bank has different overdraft fees for transactions made with insufficient funds. When you sign up for an online bank account, be sure to check out the transaction limit as well.
The FCA states that you are roughly 24% less likely to face overdraft fines if you use online banking. This is because when you start to get low on funds, the online bank will typically send you an alert by text once you reach a threshold that both you and your bank have mutually agreed is too low. Another way in which you can avoid overdrawing your checking account is that you can opt out of overdraft protection with your online bank account. Checking your bank account at regular intervals may lower the likelihood of you overdrafting your account.
Whether you are struggling with overdraft fees from using your debit card too much or need a more convenient way to pay all of your expenses, you can make the most out of online banking by setting your account up to send you text alerts when you are running low on funds or setting up bill pa