Advantage and Disadvantage of Internet Banking

By Ronni Dee

  • Overview

    The advantages of Internet banking are hard to overlook. Some people may fear the change when debating whether or not to get started with Internet banking. Others may have some concerns about depending on the Internet for financial purposes. Many people, however, have found out just how convenient Internet banking is.
  • Bill Pay

    Most Internet banks will provide bill payment services free of charge to those who choose to enroll. The amount of the bill you pay through online bill pay is deducted directly from your account with the bank, and the bank will take care of everything else. This saves the consumer both time and money. The disadvantage to online bill payment is that most banks do not immediately provide you with the date the funds are sent. It is important to read the bill pay terms of service to keep informed of how long it could normally take the bank to send your payment in order to avoid any late fees.
  • Convenience

    Online banks and financial services are open 24 hours a day, every day. As an Internet bank user you have immediate access to your accounts and balances at all times. This is extremely convenient for those who are unable to make it to a traditional bank during business hours due to their work or school hours. The disadvantage is that the systems do go through upgrades and maintenance periodically. While this usually occurs at odd hours, depending on your schedule, your information could be unavailable to you at those times.

  • Time Management

    Internet banking eliminates the three-hour account balancing session at the end of every month because you are now able to track all of your bank transactions on a daily basis. Many Internet banking companies also provide scan and deposit services in which you scan in the check you wish to deposit and mail it to the bank. This saves an enormous amount of time in eliminating the drive to the bank, especially for those who do not have a nearby branch.
  • Statements

    By utilizing Internet banking services you are cutting down on the amount of paper you use. Most Internet banks will allow you to receive an e-statement as opposed to a traditional paper statement. These statements are normally available online for as long as you have your account, and therefore eliminate the need to file those statements away each month. This small step in Internet banking can not only save you time, but money and storage space as well.
  • Security & Privacy

    Online banks are regulated and therefore required to provide good security and protect your privacy. The problem is that hackers are always trying to steal personal information. Making sure you have a good firewall and anti-virus is a good way to safeguard your Internet banking transactions. Never reply to an email from your bank that requests personal information such as your account number or password. If you feel someone may be trying to gain access to your account, you should call customer service rather than send an email.
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