Internet Banking Advantages and Disadvantages

Internet banking provides customers with an easy way of conducting business without visiting their bank in person to make a transaction. Internet banking is offered by most major banks across the United States.

Creating your account can be accomplished with a few simple steps. You must create a unique username and password to access your online banking service. Through your internet banking account, you can conduct a variety of tasks depending upon your personalized banking needs. You can deposit your check electronically, view your balance or you can transfer money to a friend or family member.

There are several advantages to using internet banking in lieu of physically visiting your bank, though there are some drawbacks to this service as well. For example, using an online bank account has additional security risks compared to visiting your bank in person. More information about the advantages and disadvantages of online banking is covered below.

Advantages of Internet Banking

The primary advantage of enrolling in an internet banking service is the convenience it provides you in your everyday life. You can use your account to pay bills and manage your balance with a few clicks of your mouse. You can transfer money from your checking account into your savings account, or you may choose to transfer money to someone with the electronic transferring service offered through your internet banking account. You have access to these services 24 hours per day, seven days per week which provides you with the ability to take care of your errands at the most convenient time for you.

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The exact services you are provided through your internet banking account varies depending upon your bank and where you currently reside, though most institutions offer the standard services previously mentioned. You have the option of depositing your checks through most online banking systems, which means you can gain access to your money after a standard processing period without having to worry about rushing to the bank on time before it closes for the weekend.

An added benefit of using internet banking is the ability to directly monitor your account balance to ensure you are detecting any fraudulent charges in a timely manner. If you see an unauthorized payment to your account, you can contact your bank immediately to have them prevent hackers from using your account again in the future. You may even be able to cancel the transaction immediately before any money is taken. If you simply wait to check your account balance every week by visiting a bank in-person, you may miss unauthorized charges when they are happening, which can create a long-term financial issue. Make it a habit to log into your internet banking account every day to ensure your payments and bills are processed on time and to ensure your account is remaining secured and protected.

Disadvantages of Internet Banking

While there are many pros to using internet banking, there are some disadvantages to consider as well. Online banking has different security risks than a traditional bank account. Since you are creating a username and password to access your bank account online, you are leaving yourself vulnerable to the potential threat of a hacker stealing your information to log into your account. When you are creating your password for your internet banking account, it is important to select something difficult for hackers to guess to increase your security.

Another one of the disadvantages of using internet banking has to do with location. If you are located somewhere with poor or limited internet service, you cannot access your online banking account until you can get access to a better internet connection. Additionally, if the bank’s server develops and issue and closes for the day, you cannot access your account until the server is fully functioning again. This can create issues when you are attempting to make a time-sensitive transfer or deposit and leaves you with the problem of having to create time in your schedule to visit the bank to relieve the issue at hand.

Internet banking is designed to provide a convenient platform to conduct deposits and transfers, though you are subject to the same processing periods you would experience if you were to complete these transactions at your local bank. For example, if you wish to deposit your check on Friday once you have been paid by your employer, you can use the mobile deposit feature offered by your internet banking provider to accomplish this task. Once your check is deposited, the bank still requires a mandatory 24-hour processing period before the funds clear in your account. This means when you are depositing a check on a Friday afternoon, you cannot access these funds until Monday morning, as online banking services typically do not commonly process requests over the weekend.

How to Determine if Internet Banking Is Right for You

If you are still unsure of whether internet banking is right for you, you can choose to create an account and follow the electronic tutorial provided by your bank to learn more information. When you are following the tutorial, you are provided with information relating to the exact features you can access with your online banking account to determine if this service is useful to you.

If you often forget to deposit a check or pay your telephone bill on time, enrolling in an internet banking program can alleviate these issues. You can choose to deposit your check into the online account with a few simple steps, or you may choose to utilize the automatic bill pay to ensure your payments are sent through on time each month. Another benefit of using banking in this fashion is you do not have to worry about slower processing time from mail delivery.

One easy way to determine if online banking is the correct choice is to make a list of all the features you want from the service. Once you have decided what banking features matter most to you, you can compare this list to the services provided by your internet banking program and choose whether the bank adequately meets your needs.

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