Online banking provides a welcome diversion from the monotony of physically balancing your checkbook and dealing with inaccuracies in handwritten ledgers. It has become so simple to manage your finances online that even the most ardent paper trail bankers have embraced the digital age of money management.
If you haven’t made the switch yet or want to learn more about the benefits of online banking, we’ve compiled a list of five reasons why you should consider managing your money online.
5: Convenience of Online Banking
Due to the explosion of always-on Internet access and the services available on it over the last decade or so, many of us have developed an impatient nature. But who wants to queue up to check their account balance? Online banking is ideal for those who require access to their funds and other banking services 24 hours a day.
Most banks offer a mobile app that enables you to access online banking more easily from your phone. While out shopping, you can quickly check on your accounts, transfer funds to avoid going overdrawn, or verify that a merchant has not double-charged you.
With Internet-enabled mobile phones, tablets, and portable computers, you can conduct banking transactions from anywhere. Therefore, if you suddenly realize that you don’t have enough cash in your account to cover the check you just wrote, you can easily rectify the situation — just be sure to do so via a secure connection.
Avoid Predators
Never access your online bank account via an insecure server, such as a restaurant’s or hotel’s free wireless Internet. Additionally, choose a strong password that is difficult to crack (use a combination of letters, characters, and numbers), and ensure that your bank is configured to notify you of any suspicious activity.
4: Easily Monitorable
You should have no difficulty monitoring your account online, and if you do, a bank representative is just a phone call away.
Even the largest and most reputable banks make mistakes occasionally, and they are not always in your favor. It’s frighteningly easy for incorrect amounts to be recorded and payments to slip through the cracks. Online banking enables you to keep a constant eye on your account balance and pending transactions. Therefore, if your employer fails to pay you or if the check you deposited is not credited to your account within a reasonable amount of time, you can do some digging to ascertain the reason for the delay.
Since each transaction is recorded, you can go back months or even years to ensure that everything is in order. Even though modern payment systems operate efficiently most of the time, errors do occur, which is why consumers must stay on top of their charges. You don’t want to pay PHP5,000 for a dinner that your debit card authorized for PHP4,000.
3: Bills Payment
They’re the dreaded necessary evil that no one enjoys dealing with, but the ability to pay them online alleviates some of the stings. Establishing a regular online payment schedule will help you avoid late fees because everything will be paid on time automatically — no stamps required. This is especially beneficial for bills that do not fluctuate in sizes, such as car or mortgage payments.
Bills that fluctuate in value can be easily tracked and paid at your convenience. Numerous banks allow you to set up reminders for upcoming payment deadlines, ensuring that you never forget to pay your bills on time. Simply ensure that you have sufficient funds in your account to cover all your payments; otherwise, you may incur an overdraft fee.
2: Direct Deposit
It is no longer necessary to twiddle your thumbs while awaiting the arrival of your paycheck. Rather than that, arrange for a direct online deposit of your payments to ensure immediate access to your funds. While this is not as exciting as seeing all those numbers on a paper check, the time saved waiting in line at the bank to deposit the money more than compensates!
Naturally, as with any other transaction, you should always double-check that your paycheck has been deposited successfully each payday. Sometimes payroll is delayed, or something interferes with the timely delivery of your regularly scheduled windfall, so double-check that you have all the money you believe you have before inviting everyone out for a night on the town.
Keep an Eye on Your Virtual Back
As with any service, it’s critical to understand all associated fees for online banking. Numerous institutions provide the service free of charge but charge for certain types of transactions, which can be an unpleasant and costly surprise.
1: Financial Transfers
Whether you have a college-aged child or a friend in need of an immediate cash infusion, online banking services make it simple to send funds where they need to go — quickly. This process is made even easier – and frequently free – if the recipient of your money also has an account with the same bank. However, do not be concerned if the recipient banks with a different institution. Generally, it takes slightly longer (often 24 hours or less), and any associated fees are negligible — though you should double-check any associated fees before completing the transaction.
If you have multiple checking or savings accounts, money transfers make it simple to transfer money as needed. Therefore, if a tree falls across your driveway and you must pay someone to remove it, you can transfer funds from another account to cover the cost.
Transferring your bank account online will not solve all of your financial woes and paying bills will never be something we look forward to. However, if you want to simplify your financial management, online banking is the way to go.
Online Banking Makes Life Easier
As the pandemic struck the economy, people became more responsible in every way of spending. It has become certain that the public became more situated indoors and shopping items such as household stuff and even paying utilities became more convenient through online banking facilities.
Hence, online banking made everything easy and fast during these changing times.
