6 Huge Advantages of Banking Online

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

The majority of banks and credit unions offer online banking. Read on for six reasons why you should check it out. 

We’re nearly a quarter of the way through the 21st century, and yet some people still climb into their cars and drive to their local brick-and-mortar bank when they have financial business to take care of. Here are six advantages of using the online banking services offered by your financial institution.

1. Bank from anywhere in the world

Whether you travel on occasion or are always on the go, using your bank’s online system makes it possible to stay on top of your financial situation without ever visiting the bank’s physical location.

It’s been over a year since I last visited my credit union, and that was only to get something out of my safe deposit box. Since then, everything has been taken care of online from wherever I’ve happened to be.

As someone who has to fight the urge to worry, I find comfort in having my bank account at my fingertips.

2. Get an immediate snapshot of your financial situation

I can work on our household budget for hours to understand where we stand for the month. And while budgeting is the best way to ensure that I know which bills are coming up, one look at my online account provides a quick snapshot of several things at once. Within less than a minute, I know how much we have in our checking account, whether each savings account is on track, and how close we are to paying off our car.

If I need specifics, I can always take a deeper dive, but if I’m just curious about the state of affairs, online banking lays it all out in front of me.

Before we had online banking, I had to dig out our most recent statement or go through a stack of canceled checks to prove a payment had been made. Today, if a contractor tells me they did not receive a payment, it takes mere minutes to check the accuracy of that claim.

3. Pay bills automatically

A few weeks ago, I realized how few of our bills I’m responsible for paying. Every one of our regular bills, including mortgage, cars, and utilities, are set up to autopay. The only things I have to “remember” to pay for are groceries and gasoline.

My sole responsibility is having our paychecks automatically deposited into the account on payday. For peace of mind, I check at least once a month to ensure everything is paid. It always is. I don’t have to worry about late payments or fees because the payment process is automated.

4. Transfer funds in a snap

We have nine savings accounts, each with a distinct purpose. For example, one holds the funds I need to pay quarterly taxes, another is for medical expenses, and another is a vacation fund. I cannot imagine how much time I would spend trying to juggle those accounts if I didn’t have online banking to lean on. As paychecks come in, moving that money to different savings accounts takes minutes. And if I see that I’ve surpassed my savings goal in one account, I can transfer some of that money to an account that looks puny.

5. Access your account 24/7

Like most worrywarts, late evenings are the worst for me. It’s typically 11:30 or midnight when I wonder if I remembered to send a check for Girl Scout cookies or some other (essential) purchase. I cannot rest until I know for sure, making 24/7 access to the account helpful. I can log on, look for a specific payment, and log off. If nothing else, it prevents me from waking my husband to ask him if I paid for Thin Mints.

6. Download statements as needed

If you’ve ever kept a stack of monthly bank statements somewhere in your house, you know what a hassle it can be. Online banking makes it easy to gather and download the statements needed at tax time without sorting through paper statements.

By 2020, more than 805 million people were taking advantage of an online banking system. If you’re not one of them, you’re missing out on one of the best time-saving, anxiety-relieving free services available.

These savings accounts are FDIC insured and could earn you 11x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts can earn you 11x the national average savings account rate. Click here to uncover the best-in-class picks that landed a spot on our shortlist of the best savings accounts for 2023.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More