Banking online - what are the benefits?

September 15, 2007

this article is bought to you by wtdirect

For a full review check it out: Wtdirect review

While, online banking has been around since the mid 1990s, today’s online banks offer far more services and features than their predecessors. Online banking and its popularity have grown considerably as Internet usage has increased. Between 2002 and 2005, the number of Americans banking online increased by 47 percent. Today, more than 63 million Americans bank online.

Why has online banking become so popular? Maybe it’s due to the great user benefits found online. As technology and finance converge, banking online creates a convenient, accessible banking option with higher savings rates than brick-and-mortar accounts.

Convenience:
Whether paying bills or saving online, you need an online bank that works on your schedule. Instead of going to the bank, the bank comes to you. This allows you to access your accounts from home, the office, or even on the road. And you can access your account any time, day or night. Transactions and even account openings can be conducted within minutes. Additionally, your account history can be viewed with just the click of a button.

Cost Savings:
Without the expense of bank branches, online banks operate with low overhead. Online banks then pass their cost savings on to customers. Cost savings come in the form of higher savings account rates, lower mortgage rates, or even free bill pay. If you are looking for an online savings account, choose a fee-free account.

While there are many online banks, not all banks are created equal. Some are full-service, offering a wide range of products like at a traditional bank. Others focus on one aspect of banking, such as savings. When investigating an online bank, make sure it meets your needs. Here are some aspects of online banking to investigate for a positive online banking experience:

Security:
Banking online is very safe. Most online banks use highly sophisticated technology to ensure your security. You can also take steps to protect your online assets yourself. Make sure your firewall programs and anti-virus software are up to date. Never give out your personal account information or passwords to anyone. If you have online savings, look for “FDIC insured” on the bank’s website. This guarantees that your money is backed by the government up to $100,000 per depositor. Regardless, make sure your online bank further protects your assets with zero liability for any unauthorized transactions. Secure bank websites will feature a secure login page, which display the images of a padlock or key. Finally, there are industry watchdog organizations that rate online banks. WTDirect has been awarded a four star “safe and sound” rating, the highest ranking given by bankrate.com.

Privacy:
Make sure to read your online bank’s privacy policy. You don’t want to choose an online bank that will sell your personal information to third-party marketers for profit. You can also check a bank’s website for third-party endorsements for privacy. WTDirect’s enhanced privacy policy has been accredited by TRUSTe (www.truste.org).

Customer Service:
While banking online does not mean having to sacrifice customer service, not all online banks provide good support. Make sure that an online bank will be receptive to customer service phone calls. Some online banks actually discourage customers from calling. If phone support is a service priority for you, make sure that you won’t be penalized for calling. You should also make sure that the online bank provides legitimate mailing and email addresses.

Another aspect of online banking customer service is website functionality. A website that is easy to use and navigate will really enhance your online experience. The website should also be reliable.

Many people have found online banking a way to enjoy competitive interest rates, cost savings and convenience. By asking the right questions and knowing your personal banking needs, you will be able to find the right online bank for you.

WTDirect offers a smarter way for serious savers to manage larger deposits online with superior, personalized service. WTDirect’s signature product, an online high yield savings account, features a consistently high interest rate, personalized service with a “human touch” and greater protection. WTDirect is the online arm of Wilmington Trust, one of the largest personal trust providers in the United States and a leader in banking for over 100 years.

Posted in Banking & Saving Accounts