If you're like most people, you've heard a lot about online banking but probably haven't tried it yourself. You still pay your bills by mail and deposit checks at your bank branch, much the way your parents did. You might shop online for a loan, life insurance or a home mortgage, but when it comes time to commit, you feel more comfortable working with your banker or an agent you know and trust.
Banking online has become a fairly simple process. The logging-in process is virtually as straightforward as any other site, with a couple of extra precautions. Banks and financial institutions take a great many precautions, as they have to. And yet, people don't seem to be convinced. A recent survey showed that, of computer users, only 39% regularly bank online, citing security as a concern.
That's natural; after all, people should be concerned about their money, especially these days, when reports of identity theft proliferate. There are cases where it does happen; however, few have come from proper online transactions. And the industry-standard 128-bit encryption is about as safe as you can get; it's the same as you find when purchasing online through secure sites (and if you purchase from non-secure sites and give credit card details... Sorry, but you get what you deserve).
Banking online allows you to check your balances and move money between your accounts at the click of a mouse. It helps eliminate the danger of being overdrawn, while still letting you keep money in a higher-interest savings or other account until it has to be moved. This gives you the flexibility to let your money really work for you, the way banks always claim it should in their ads.
Something you're probably used to is paying a monthly charge (unless you have a certain minimum balance) as well as paying for checks. A lot of online banks eliminate that fee; after all, you're not writing checks, and with fewer overheads, they don't need to make those charges—all of which helps put them in a more desirable position for consumers.
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