Online Bank Accounts Information

Banking online and access to your online bank accounts has never been easier, faster and more secure.

Of course, you can still pay your bills the "old-fashioned way" by mail and you can still deposit checks at your local bank. But why?

If you haven't considered online banking, then perhaps you should give it a try.

Banking online is one of the fastest growing online activities. It is estimated that almost half of all users of the Internet are online banking customers.

Online banking is considered a valuable customer service that provides speed and convenience at a low cost. Recently, free online banking and bill paying are very common, so make sure that you look for online banks that don't charge for those services.

Online banking uses current computer technology to give you the option of bypassing the time-consuming, paper-based aspects of traditional banking in order to manage your finances more quickly and efficiently from the comfort of your own home.

Banking online is not just just for the big banks. Many of us keep our money in the local community banks and fortunately for you, many of the smaller banks now offer secure online banking. Of course you will need to make sure that your bank offers access to your bank accounts online.

Best Online Banks

Citi tends to set the standard for online banking. The Citi site can be customized, allows aggregation of bank accounts, provides banking, mortgage, credit card, and additional financial accounts. Your checking is free with direct deposit and you get free unlimited bill paying. Citi is located in 46 countries providing you access to 1,400 branches and 3,800 ATMs. You can easily move your money between Citi and outside bank accounts using inter-bank ACH transfers.

ING Direct condcuts banking business online, over the phone and by mail. ING Direct consistently offer higher interest rates for higher yields on your accounts. ING Direct provide Electric Orange checking which is a paperless checking account that pays a high interest rate. ING also offers free savings accounts, low cost mortgages, and an online brokerage.

Wells Fargo provides you wih a wide variety of online banking services including checking, online bill pay, mortgage, brokerage, and credit cards. The OneLook account service links Wells Fargo and other online bank accounts with a single sign-on. Be aware that Wells Fargo allows free bill pay for two months, but if your balance falls below $5,000, you have to pay a $7 per month service fee.

Bank of America merged with Fleet and that resulted in some incompatibility problems. All new customers sign up with what was known as FleetHomeLink, but with some addtional features. Due to the merger of two banking systems, you have access to more than 16,000 ATMs, so you will rarely need to pay any ATM fees. There is no minimum balance required, online bill paying is free with checking, and checking is free with direct deposit.

HSBC is a financial powerhouse around the world. A big advantage is that you can do your online banking in multiple languages. HSBC offers free online banking, bill pay, and free basic checking accounts. Aggregation of your online accounts is also free. Additional financial HSBC services include trading stocks, roll over your IRA, apply for mortgages and credit cards online.

Ally Bank is the result of GMAC Bank changing its name. GMAC Financial, the parent company of GMAC Bank, hasn't been a part of General Motors for years, but when an auto company is in distress people think that the financial company with the same name must be linked. Therefore, GMAC Bank changed their name to Ally Bank. 

Netbank was the original online bank. Netbank is still a competitor in online banking, but is doesn't offer the highest interest rates and is no longer the cheapest. Checking with Netbank does offer above average interest rates. If you pay a monthly fee of up to $9 for Supervalue checking, you can get an interest rate that is five times the National average. Netbank offers free online bill pay and aggregation of accounts. You can order traveler's checks and foreign currency for overnight delivery. Netbank does not allow transfers between Netbank and other bank accounts.

Everbank is an Internet only bank that offers free checking, online bill pay, account aggregation, and online statements as long as you maintain a $1,500 average balance. Your online checking will earn an introductory interest rate of 3.5%, and then the interest scales down. Even as an Internet bank, you can get live telephone assistance. Everbank does provide you with a World Currency account that allows you to invest in CDs denominated in foreign currencies.

Advantages of Online Banking - First and foremost online banking is convenient.  Computer sites never close they are available 24 hours a day, seven days a week and they're always a mouse click away.

There is nothing more convenient than checking your bank accounts online, easily transferring money from one of your bank accounts to another, and paying your utility bills all from the comfort of your home.

If you're out of state or even out of the country when a money problem arises, you can always access a computer and do your banking online 24/7.

Online banking is also fast with no waiting in long lines at your local bank.  You can usually access and manage all of your bank accounts, including IRAs, CDs, even securities, from one safe site.  Most online bank sites are also compatible with money managing programs such as Quicken and Microsoft Money.

Disadvantages of Online Banking - There is some time required to start up an online bank account.  You will also be required to provide secure identification fro yourself and your spouse if you both plan to access your accounts.  It can take some time to learn how to bank online. 

Online banking sites can often be difficult to navigate at first. Invest some time up front and read the instructions in order to become comfortable with your Internet banking site.  Some banks periodically upgrade their online programs and you have to re-enter all of your account information. 

For many people, the biggest hurdle to online banking is learning to trust that it is secure and safe.  It's difficult to replace to the face to face interaction with a bank teller and the comfortable feeling of being handed a receipt for your deposit.

Tips for Online Banking - Always print receipts until you see your transaction show up electronically on your account.  The Federal Deposit Insurance Corporation (FDIC) site provides consumer protection information for you as an online banker.  This site is loaded with tips to make your online banking experience enjoyable and secure.

Spend some time shopping around for online banks that will meet your needs. Online banking is a very competitive business and online banking can offer you higher interest rates for your checking and savings accounts. Many banks will offer free online checking, especially if you use direct deposit. Look for free pay bill offers and additional financial services