Online Bank Accounts

One great thing about the Internet is that there are many financial things that can be done that make life easier for anyone who might choose to use them. Internet banking is one of my favorites, though it does make me a little uneasy about security. Banking is now easier than ever! Who would have thought that just ten years online bank accounts were just starting to be offered by many financial institutions across the country and the world?

Online bank accounts have simplified the checkbook reconciliation process immensely, making it easy and convenient to view checking and savings accounts, transfer money between accounts, open new accounts, set up automatic bill pay, and more! It is possible to make investments, buy certificates of deposit, wire money, apply for auto loans, personal loans, and mortgages; all transactions that are available at traditional financial institutions. Why would you ever want to go back to waiting until the end of the month for your statement to come in the mail, or call a phone number at your bank to see what checks and deposits have cleared? Now let’s continue . . .

Many traditional financial institutions offer online bank accounts to their customers as a convenient way to do their banking online. But for the purpose of this specific discussion, online bank accounts can only be set up online, and therefore are only available online. When looking for reputable companies that offer online bank accounts, be sure to do your homework. There are many companies that offer less than secure services leaving your accounts vulnerable to hackers, who can empty your accounts and have your funds in their hands in a matter of moments. Now on to finding a reputable online bank account. Since you will not be banking in the traditional manner, it costs less for banks to do business in this way, and they pass the savings on to you by not charging excessive fees, and by paying you higher interest rates on your hard earned cash. Make sure the bank you choose to do business with is FDIC insured, just as you would a traditional bank, so make sure your funds are safe.

The keyword to setting up online bank accounts is ‘convenience’, as well as ease of transferring money to a number of linked accounts, security and insurance of deposited funds, and accessibility. Most important, do your research. Watch out for scams, compare rates of interest paid, fees if any, and reputability of company offering online bank accounts. There are several online sites dedicated to educating the consumer to assist in choosing the best provider of online bank accounts. Don’t feel that you have to be confined to the sometimes rigid structure of traditional banking institutions. Do your homework and you will be glad you did.