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Guide to Online
Banking... Page 2
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Advantages and Drawbacks
Online banking offers many advantages over traditional banking methods. There are also
many drawbacks.
1) Advantages
- You can bank from any location that has a Internet connection (Internet-based).
- You can work offline (bank program or personal finance software) after you download
account information.
- You have better control over your money.
- You can see which checks have cleared.
- You have access to your account 24 hours a day, 7 days a week.
- You can monitor your account in real time. Withdrawals, deposits, ATMs, debit card
purchases.
- You can transfers funds from one account to another.
- You can use financial software to keep track of your online bank account.
- You can set up electronic bill payments.
- Online banking is more cost effective for banks. This should result in lower fees for
customers.
2) Drawbacks
- You have to own a personal computer with a modem.
- You must have an internet connection to access Internet-based accounts.
- Your ability to access your bank account is dependent on technology.
- Online banking is subject to the reliability of web servers and other computers. If they
crash you can't access your cash.
- You have to know how to use a computer.
- If you ever change banks, you may have to switch software. You'll have to re-enter all
your old account information into a new program. This could be very time consuming.
Banking and Savings Calculators:
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• How much will my savings be
worth?
• How will taxes and
inflation affect my savings?
• How much difference will
the rate make?
• How much, at what rate,
when?
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