Online banking is one of the services that retail banks, credit unions, and building societies provide their customers with. There are also some banks that are purely online so they have no branches with tellers that you interact with. The growing use of credit cards, debit cards, and other online payment services like PayPal adds to the diverse ways by which people move money around. All this makes people more comfortable with the idea of virtual monetary transactions where they're not using cash and that opens up opportunities for online banking.
So what are some of the reasons why e-banking is an attractive option for consumers?
- Cheaper and May Offer Higher Interest Rates on Savings
One of the reasons why some are flocking to virtual banks or direct banks is that these are cheaper. People are getting frustrated with the various fees that banks are charging for their services. Direct banks do not have any branch network and they provide their services thru e-banking. This helps them avoid the overhead costs of maintaining a brick-and-mortar branch so they don't need to charge so many fees. Many direct banks also offer online savings accounts that provide customers with higher interest rates compared to traditional banks.
Many traditional banks are now offering online banking services as an added service to their customers. U.S. bank Wells Fargo for example, is offering the Wells Fargo Online service. It's convenient for customers because they can monitor their accounts and pay bills all from the comfort of their own homes. Check your bank if you can enroll in their online banking service to take advantage of these services.
Many may be turned away from online banking by the thought that it is not as safe as transacting with traditional banks. However, traditional banks also keep their customers' financial information stored online so the risk is basically the same. Taking the same precautions that you take when protecting your other online accounts are just as important or even more important in order for you to protect your online bank information.
- Extended Operating Hours
How many times have you had to take time off from your lunch break to make a transaction with your bank because you couldn't drop by your bank after work hours? If you're tired of rushing to the bank and taking time off from work, then you should consider e-banking. Many online banks operate 24/7 so there's no need to rush out to your bank to complete a transaction.
- Ability to Access Credit Card Statements
For credit card holders, banks that provide online banking allow cardholders to get their credit card statement online so there's no need to wait for it to come in from the mail. The faster you get your statement, the faster you can review it. This paper-less transaction is also great for the environment.
Online banks have many attractive features such as its higher interest rates, lower fees, security, and its many services that make it convenient to complete transactions like deposits, withdrawals, payment of bills and when you need to get your credit card statement. If you're already comfortable using virtual payment methods like PayPal, then you should consider online banking for its benefits.