Easy Account Maintenance
Number one on the advantages of online banking list is easy account maintenance. Online banking makes it easy to keep track of your balance and the activity of your accounts. For those who have multiple accounts with the same bank, many online banking systems allow for you to see the balances of all of your accounts on a single screen. You can also easily go back and forth between your accounts and monitor their activity with little to no hassle.
Online Bill Payment
Probably the most widely used advantages of online banking is the ability to pay bills online. Most online banking systems feature this capability, allowing for you to enter in your account information for your billers, to pay them directly from your bank account. A lot of banks even allow for recurring payments to be set up for those bills that remain the same each month such as mortgage, rent, car, and personal loan payments. Depending on the relationship your bank has with the biller your payments can be automatically debited from your account or an electronic check may be drafted and mailed to the biller. Any way you look at these are all advantages of online banking: save you time, save money on postage, and provide the opportunity to avoid late fees with careful planning.
Online Balance Transfer
At some point you may find that you have to make a purchase and do not have enough in your checking account to cover it. However, you may have the funds needed in another account such as a savings account. One of the advantages of online banking is the ability to transfer funds from one of your accounts to another. This online banking feature helps to prevent insufficient funds, return check, and overdraft fees on your account(s). A word of advice about transferring from your savings account, try to keep this type of online banking activity to a minimum. Federal regulations prohibit an excess of six transactions from occurring on a savings account within a billing cycle.
Another one of the advantages of online banking is the availability of setting up account alerts. Some banks offer account alert set up, where an email or even text message can be sent to you based upon certain criteria you select. For example, if you have a recurring bill payment where an electronic check is drafted and mailed, you could set up an alert to be sent to you advising when the bank has mailed out the payment. Other alerts include, weekly activity alerts, statement alerts, and low balance alerts. These alerts work to make monitoring your account easier.
Rewards for Going Paperless
With all of the focus on going “green” these past few years, the last in the advantages of online banking list deals with rewards for going paperless. A lot of banks offer rewards in the form of rewards points or cash to help reduce the amount and cost of paper consumption. By opting to receive your bank statements online, increasing the use of online bill payment, and using your bank card more frequently your rewards could rack up significantly and you’d be helping out the environment in the process.
The advantages of online banking are increasing every year. Banks realize the potential for savings with the increase of online banking. You will realize the convenience and cost effectiveness to your budget as you see the money and time saved by taking advantage of the online banking increase.