Did you know that both the pros and cons of online banking are persuasive? Most people today are using a hybrid of the internet marketing and physical banking account from a local banking institution. Do you wonder what the pros and cons of this form of banking are? Well, here they are.
The opportunity to save money and time are among the major benefits of online banking. With this, you can verify your account, set a schedule of your bill payments as well as manage your deposits with just a few clicks. Moreover, you have the power to control your cash within 24 hours 7 days a week. You will not have to make phone calls or visit the nearest ATM so that you can check how much money is left in your account.
With online banking, you have the option to pay your bills through the web. When you use the online bill pay, you could either choose to pay all your bills at the same time or you may set up your recurring bill payout for your monthly bills like car loans, car insurance or mortgage loans. You can set up your payments wherever you are if you choose to do it online.
You don’t have to send your bills by mail and wait for the notice the following month telling you that your check came at the office late or the recipient failed to process your payment until after the expected date. With online bill pay, you don’t have any reason to worry of losing one of your bills.
Most people that an online saving account typically earns better interest compared to a savings account at a local bank. However, you may not know that some online banking companies also provide an interest-earning checking account. The online banking interest rate for the checking accounts ranges from 0.5 up to 3.40 percent per year. You will find that these rates are incomparable as when you compare them to any savings account in any traditional bank. It may not be possible to find a local bank today that offers an interest-earning checking account.
On the other hand, when it comes to online banking, you may find that it is hard to check how much money you have so that you can budget it. Online banking works in a very different way with the use of credit cards. Its ease of access will make it easier for you to spend your cash without realizing why you do it. You may set up some email alerts so that you can tell when your account’s balance drops below a certain rate but having your checkbook could still be the best option.
Identify theft is one of the most common crimes done online. With online banking, you are giving the identity thieves with a chance to make you their next victim. To combat the problem, you have to be careful especially when you go online. Be mindful of your safety and the security of your personal details. Your computer should have a security software program which can help in reducing the chance for anyone with malicious intention to acquire and steal your personal details.
Another disadvantage of online banking is that you cannot see your bank physically. This is one of the major downsides of internet banking. Making deposits to a brick and mortar banking institution gives you assurance and peace of mind which is not the case with online banking.