Why I Use Online Banking and You Should Too!

by Krantcents · 32 comments

Post image for Why I Use Online Banking and You Should Too!

Do you use online banking?  If you have a smartphone, you have 24/7 access to your bank account anywhere you can connect to the internet.  No smartphone?  You still have access, if you have a computer with an internet connection.  Are you still writing checks and stamping envelopes?  Have you ever been late because it was not delivered on time?  I have a solution for you.

I am relatively new to online banking.  I just started using online banking about six (6) years ago.  I started to use online banking because my wife and I were traveling overseas.  Normally, I would pay all my bills the old fashioned way by writing checks and stamping envelopes. I would then have one of my children mail the checks on certain dates while we were away.  It worked well for years.  So why change?

I’m sure you have heard the phrase, “if it’s not broken, why fix it?”  Although my children are very reliable, the postal system is not.  I had to think about how much time was enough to make sure the payment arrived on time. Late fees can add up real fast.  Banks are increasing fees and penalties for late payments. I am rarely ever late, but in almost all cases, it was due to the postal system.

Is online banking a more reliable choice?  It is not only more reliable, but much easier.  Maybe it is the accountant in me because I like the idea of controlling my expenditures with instant balances and totals.  It removes many of the mistakes that can occur in a handwritten ledger.  No addition, subtraction errors or forgetting to record a check, deposit or withdrawal.

Have you jumped on the online banking bandwagon yet?  It is relatively new, it was started in the 1990s to allow customers to view their accounts and transfer funds between them.  The modern automated teller machine (ATM) was started in the 1960s and was the first way for bank customers to access their bank accounts.  Although there are fees for using another bank’s ATM, it started a trend.

Banks want customers to do more transactions online or at the ATM.  It costs less and there are shorter lines than the traditional brick and mortar bank.  Banks are automating to saving money and so should you!  Are you still going inside the bank?  It is rare for me to go inside the bank.  I only do when I want to access my safe deposit box and it always take more time than I like. They have to let you into the vault and there is no full time attendant.

Ten Reasons to Switch to Online Banking:

  • Save postage – It appeals to my frugal side.  I make twenty-five plus (25) checks (payments) every month online which translates into upwards of eleven (11) dollars every month.
  • Convenience – You can access your bank accounts 24/7 from a variety of instruments such as a smartphone, tablet, notebook, laptop, desktop and ATM.  If you are on the road or move a lot, you can have all your bills received online and you can pay them online.  Schedule bill payments in advance, set up recurring payments and check payment history.
  • Services – Access your checking, savings, line of credit, credit cards, other loans, investment and mortgage accounts.  You can transfer money between accounts, pay bills, transfer or pay money to an individual or company.  Last, you can go paperless and receive electronic invoices.  Deposits via smartphone are becoming commonplace.
  • Security – In the beginning, people were concerned with internet security, but it is now much more secure than just using regular mail.  Many were reluctant because of identity theft, but paying your bills through online banking is more secure than mailing a physical check.  You update your files and establish security.  Passwords should be complex and changed often.
  • Environment – Going paperless is a good trend for the environment!  You can avoid a physical bill mailed to you and mailing a payment.  Most companies offer e-bills.  You can even go paperless bank statements and just print out statements or checks when you need them.  You save the environment of a lot of paper.
  • More Organized – You can look at your bank account balance as you pay your bills.  You can set up automatic payments, particularly for mortgages, debt or routine payments.  I particularly like it when I get a zero interest account to make sure I do not go past the promotional period.  E-mail reminders (alerts) keep you organized and avoid late payments.
  • Avoid Late Fees/Penalties/Interest – I hate late fees, penalties or interest!  It is what motivates me to pay my bills on time. When I receive a bill, I immediately schedule when it will be paid.  My bank guarantees delivery by a particular date so no possibility for fees.
  • Personal or Business Accounts – Online banking is not just for personal accounts.  You can have your business accounts online too.  It has all the same advantages as a personal bank account and you can manage your money better too.  I wish I would have online banking when I owned my businesses!
  • Fraud Protection – Bank accounts are protected by the institutions for fraud as long as you take ordinary precautions.  Similar to checking your credit reports routinely, you should monitor your bank accounts.
  • Manage Your Money – You can manage your money better by just having access to your account 24/7 everywhere.  You know immediately if you have sufficient funds in your account,  You can retrieve information anytime and anywhere.  You need information to manage your money!

Final Thoughts

What are you waiting for?  Banking online is a great convenient way to access your bank accounts to pay bills, make payments and monitor you accounts.  It is a great way to manage your money and become more aware how you spend and allocate your financial choices.  The best part of online banking is there are no fees.  You can use the service and save money too.  Is online banking in your future?

Photo by:  Don Hawkins

 

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{ 30 comments }

My Financial Independence Journey April 2, 2013 at 2:20 am

I’ve done the majority of my banking online for years. As much as I love paying bills and transferring money online, I’m still leery of ATM machines. I much prefer to walk into a bank, talk to a teller, and get cash the old fashioned way.

Krantcents April 2, 2013 at 6:46 am

I think I hate lines more! I only use an ATM just a few times a month. I really like the idea of scheduling payments which is so easy online.

John S @ Frugal Rules April 2, 2013 at 6:22 am

I’ve done online banking for longer than I care to admit. :) There are just too many benefits not to use it in my opinion and you can do so much of your banking without ever leaving the comfort of your home.

Krantcents April 2, 2013 at 6:47 am

I agree, online banking is great for scheduling payments and particularly the recurring ones like a mortgage.

Squirrelers April 2, 2013 at 6:53 am

I was steered into online banking by my wife about 5 years ago, and wondered why in the world I hadn’t done it before. Truly, in 2013, people should be embracing online banking.

Krantcents April 2, 2013 at 7:26 am

I agree, I love the concept of scheduling payments and setting up automatic payments.

Brick By Brick Investing | Marvin April 2, 2013 at 7:06 am

I can’t remember the last time I actually went into a brick & mortar bank. You can literally get what you need done within 5 minutes of being in front of your computer screen. I don’t know why anyone would prefer a brick and mortar bank anymore.

Krantcents April 2, 2013 at 7:27 am

The only reason I go to the bank is to use the ATM. Some day that will be replaced too.

Money Beagle April 2, 2013 at 7:10 am

I check our bank stuff online almost every day, and reconcile it with my spreadsheet based ledger. At this point, I could not imagine doing it any other way.

Krantcents April 2, 2013 at 7:28 am

It is much to check things online than looking it up manually.

Grayson @ Debt Roundup April 2, 2013 at 8:15 am

Online banking is awesome. It is so easy and convenient. I almost never walk into a branch anymore and haven’t done so in a long time. I am sure there will be a day when banks start charging us just to log on, but those days are not here.

Krantcents April 2, 2013 at 10:19 am

I agree! I think the banks would like all of us to use online banking because it is self service.

maria@moneyprinciple April 2, 2013 at 2:05 pm

We do this and I love it; the ease and speed with which I can check our accounts and move money around is great. Also it matters little where we are; in fact John just transferred some money in our ISA and we are in a little village in North Bulgaria. One thing I found hard is that when we were paying the debt I got totally obsessive checking how it is going every several hours or so – irrational really but what can you do.

Krantcents April 2, 2013 at 2:32 pm

It is one of the shortcomings of having too much information! I like the ability to make automatic payments, particularly for a zero interest credit card. I also like the ability to schedule payments when I am away or even if I am not.

Suzanne @ Financial Advisor Coach April 2, 2013 at 2:43 pm

I find online banking extremely convenient. I worked remotely for one month last year on the Southern Oregon coast. I used my smart phone to deposit checks to my personal account and used online banking to pay my regular home bills.

Krantcents April 2, 2013 at 4:06 pm

Convenience, scheduling payments and automatic payments are just a few of the advantages.

Canadian Budget Binder April 2, 2013 at 4:47 pm

I’ve been using online banking since I landed in Canada as it’s so convenient, easy and less hassle. In fact I opened an account while I was visiting Canada and was able to access it from the UK. The wife has been using online banking for over 10 years now and just loves it. We have no need to go into a bank and if we could but with no fees, free cheque books heck, it’s perfect for us. Great tips!

Krantcents April 2, 2013 at 4:57 pm

Thanks, I expect the banks to do more online because it saves them money. It is a great self service product and they save on hiring more tellers and opening more branches.

Greg@ClubThrifty April 3, 2013 at 4:41 am

We finally made the switch to using our bank’s online system, and we love it. The convenience of it is fantastic. It took a little bit of time to set up each bill initially, but after that things go MUCH quicker!

Krantcents April 3, 2013 at 6:51 am

I particularly like to set up automatic payments such as mortgage payments or transfers. Saving the postage isn’t bad either!

Tony@WeOnlyDoThisOnce April 3, 2013 at 7:18 am

Agreed! The ease of use through mobile apps etc now is stunning and would have been unthinkable five years ago, even.

Krantcents April 3, 2013 at 7:23 am

Everything is going mobile! It looks as though a desktop will go the way of a typewriter soon.

AverageJoe April 3, 2013 at 9:07 am

While I’m lucky that I do business with a bank that has great customer service, their online tools are the reason I stay. I’m just happy that when I have a question or concern it’s quickly and efficiently answered by smiling people.

Krantcents April 3, 2013 at 9:15 am

It would be nice if all bank customer service good and friendly. I think the trend id self service in terms of banking!

Alexis Marlons April 10, 2013 at 8:55 pm

I totally agree with this post. As busy as we are, online banking has been very helpful to make our lives a lot easier and our banking transactions a lot more convenient.

Krantcents April 11, 2013 at 6:52 am

Convenience and you save the postage too! Sounds like a win/win.

eemusings April 11, 2013 at 2:16 am

I sure do! I think our systems are a bit more advanced here and we’re a lot more electronic than some other countries. I never used cash, and while my parents have chequebooks, I don’t know anyone my age who has one. I never have and don’t see why I ever would. I don’t even really know what balancing a chequebook means.

Krantcents April 11, 2013 at 6:56 am

A true checkless and cashless society. I remember studying that in the early seventies. I think it is our future because processing checks are expensive.

KC @ genxfinance April 11, 2013 at 4:18 am

Exactly.. Thanks to mobile apps and all of these wireless technology that we are able to monitor our banking. Yes, there are a less chances of being late and it is just so convenient.

Krantcents April 11, 2013 at 6:58 am

My bank even guarantees delivery by the date it is debited from my account. It is a great incentive to use online banking.

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