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Internet Banking Is It For You


									     Internet Banking
        - Is It For You?
Internet Banking - Is It For You?

Online banking has become very popular for simple banking transactions. These
banks can make actively managing your financial life much easier. With an internet
bank, you'll be able to monitor your accounts, pay bills, and transfer money, all with the
click of a button.

But if you're considering online banking, remember that internet (or "direct") banks
are not always a viable substitute for brick-and-mortar banks in all cases. To help you
decide whether to switch to online, stay with traditional banking, or do a
combination of both, let's examine the advantages and disadvantages of internet
banks.Advantages of Internet Banks

   1. Convenience. Direct banking institutions are open for business anywhere
      there's a web connection. Other than times when website maintenance is being
      performed, they’re always open. Your account balance and information are can
      be accessed with a just few keystrokes.

           Even when Internet service isn’t available, customer service is typically
           available 24/7 via telephone.

   2. Better Rates.Infrastructure and overhead costs are minimal and allow Internet
      banks to pay higher interest rates on savings accounts while charging lower
      loan and mortgage rates. There are even accounts with no minimum balance or
      service fees that can be opened without a minimum initial deposit.

   3. Extensive services.Internet banks normally have better quality websites than
      traditional banks, with more comprehensive content. Such features can include
      functional budgeting and forecasting tools, online financial planners,
      investment analysis tools, trading platforms and loan calculators.

   4. Banking on-the-go.Internet banking now almost always includes mobile
      capabilities. New applications are continuously being created to further expand
      and improve this capability on smart phones and other mobile devices.

   5. Transfers.While traditional banks do allow funds to be moved via electronic
      transfer, often there is a fee. Most internet banks offer unlimited transfers at
      zero cost. This even includes transfers to outside financial institutions. They
      also accept authorized direct deposits and withdrawals, such as payroll
      deposits and automatic bill payment.

   6. Ease of Use. Online accounts are quite easy to set up and don't require any
      more information than a traditional bank account. If you don't want to
      complete the application online, the forms can be downloaded and mailed.
      Online checks are actually easier to use, since the payee information is
      automatically saved for future use.

Disadvantages of Internet Banking

   1. Personal connections. A regular bank does offer a better opportunity to
      develop a personal relationship. These connections can help when you need a
      loan or other special service. Your local bank manager also has some discretion
      when you'd like an overdraft fee removed.

   2. Transaction issues.Complicated transactions and large cash transactions can
      be challenging with an online bank. Most Internet banks don't have their own
      ATMs, though some have begun to form network alliances with traditional
      banks. But in most cases, ATM use is going to cost you.

   3. Available services.Some Internet banks may not have the full range of financial
      services that a traditional bank has, such as insurance offerings and

   4. Security. Internet banks are required to obey the same laws and regulations as
     a traditional bank, and the FDIC insures the bank accounts. However, having
     electronic access to your accounts always carries some additional risk to your
     data, regardless of whether you're using a traditional bank or an Internet bank.

                                   As with anything else, there are advantages and disadvantages to both online and
                                   traditional banking. Your ultimate solution might be to utilize both types of banks. Use
                                   the points above to consider your own situation to help you make an informed


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Curtis Rose is an experienced professional with extensive experience in all
aspects of personal finance. Curtis writes and publishes articles, courses,
guides and special reports on his personal finance blog. Sign up for his
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