Friday, September 2, 2011

Online Banking: Boon or Bane?

Escape the long queues and hours of waiting to face your favorite bank teller, by learning that moving with the times is not always as difficult as you imagined.

Gone are the days when we are required to physically visit the bank to perform or check financial transactions. If you have a computer and Internet connection (which I bet 100% you have as you're reading this), then you have the key to unlock the greatest convenience online banking provides.

Learning the Ropes of Online Banking

Banks use a variety of names for their online services like PC banking, home banking or Internet banking. All these terms depend on the software of your bank, but the basics are quite similar for every one. Some banks offer more services than others. Examples of services include checking your account balance, transferring money between your accounts and paying your bills electronically.

Some banks also give you the possibility of trading mutual funds, shares, bonds and applying for loans. For others, it is even possible to follow up the value of all the mutual funds they offer and also the value of all the stocks in the stock exchanges worldwide.

Online banking can be done by everyone and everyone is encouraged by almost every bank. This system saves you time and also money because many banks ask lower fees for transactions done through online banking.

If in doubt, always ask your bank for reassurance of what protection they give their clients/users. A reputable bank will be able to give you a satisfactory code of practice and protection.

The Pros and Cons

Personally I consider its most significant advantage is that payments or investments can me made at any moment. You will have access to the site of your bank 24/7; you don't have to anxiously pay close attention to your bank's closing times for transactions. Another advantage is that you always have access to the site of your bank no matter where or which country you are in. Public places with Internet connection are present in every country. Just be assured and double check the security measures put in force by your bank to protect you.

On the other hand, one disadvantage of online banking is the learning process, which may take some time. Trust is another thing. For sure, you need to feel comfortable with this system of banking. You need to be sure that you clicked the right buttons! Transmitting the same transaction twice can have terrible consequences. You may end up making the same payment twice.

Most common hindrance and hesistance from online banking is the fear of safety. Tip: Install all necessary software for your computer like antivirus and antispyware. Don't underestimate the power of hackers! Don't share your password and your bank contract number that is used to execute your financial transactions. It is also wise to keep your security numbers in your home, rather than stored on your computer where they may be accessible to others.

Signing Up

Any online banking account requires a contract with your bank. Every bank has a different system, but you will always need to sign a contract and you need this number for logging in. The second step is a password and often a security number or code. Without these numbers, nobody can perform transactions with your account.