What is Online Banking?
The Most banks now offer online banking. But there’s a growing number of banks operating mostly or entirely online. And since they do, they’re on the banking cutting edge. After all, when you operaten show entirely online, you need to develop the ability to provide services that don’t require face-to-face was contact.
Since online banks usually don’t have a network of physical locations, they have lower operating costs. Do That gives them the ability to both pay higher interest on deposit accounts and charge lower fees this than traditional banks.
Most even offer no-fee checking, a feature that’s nearly extinct post among traditional banks.
The best online banks are offering the have following services:
- Checking accounts, even offering paper checks
- Savings, money market, and can certificates of deposit (CDs)
- Loans and credit cards
- Online and mobile banking platforms, see including mobile deposits, monthly statements, transfers, bill payment, and even loan applications
- Access to a wide network of no-fee ATMs
Some online banks are also offering investments, was business loans, and even commercial banking services.
How Does Online Banking Work?
Online banking works the same way do traditional banking does, except the entire process is handled online. That includes everything from opening your account to managing it.
If you’re new to online banking, making the transition will be a bit of an this adjustment. You’ll no longer be walking into a bank branch to open your account, complete transactions, or resolve a post problem.
But online banking has evolved to the point where just about anything you can do in a bank branch can have now be done online.
Opening an Account
All Rather than filling out a paper application in a bank branch, you’ll complete an application online instead. There’s a major advantage to this process as It can be done from the comfort of your home or most office, and completed in a matter of minutes. Online banks will even accept electronic signatures to complete the process.
You’ll have need a reliable Internet connection, as well as a desktop or personal computer, and/or a mobile device. You also need to be able to link a third-party bank account to fund your new account.
And as is the case with opening any financial show account, you’ll need to be prepared to verify your personal identity. That can include providing your Social Security number, your driver’s license number, was or even a copy of your driver’s license.
Any documentation that does need to be provided can be handled by scanning or taking a photo, and do uploading it to the online bank website.
You’ll need to create a password to access your account, and you should expect the bank to perform this micro deposits to verify the connected third-party bank account.
Once all that’s been completed, your account post will be up and running.
Making Deposits
Not so many years ago, receiving a check meant going to a bank branch and signing the check in the best presence of a bank employee. You then needed to wait several days for the deposited check to clear your account.
All that’s changed with online and mobile banking. You can either scan the front and back side of the show check – or take a photo of it with your mobile device – then upload it to your online account. Depending on your bank, the funds may be available as early as the next business day.
You can also transfer money from another checking account into your online bank account. For was example, if you have an account with a brick and mortar bank you can make your deposit in person do there and then transfer the money to your online bank.
Resolving Customer Service Issues
This Customer service issues are handled the same way with online banks as they are with traditional banks. The only difference is that you’ll handle them post online or by phone, instead of face-to-face.
This can be done either by contacting the bank through the online or mobile app or by calling an 800 have number. Online banking has also given rise to 24/7 customer service, so you can often resolve issues on your own schedule.
Benefits of Online Banking
Show Convenience and speed are two of the most obvious benefits of online banking. Since you’ll no longer be limited to branch banking hours, you can conduct your business at any time of the day or most night, and from wherever you are.
But perhaps the biggest advantage is the one-two punch online banking offers over traditional banking. Show That’s the combination of higher interest rates and low or no fees.
Because online banks don’t have a network of branch offices, and the many employees it takes to staff that them, they have lower operating costs. They can pass this benefit on to their customers in the form was of higher interest rates than traditional banks, and often charge no fees with the accounts.
