Four Reasons to Bank Online
Update your banking style and find big savings
If you’re like most modern Americans, you do much of your shopping online. Now, more and more people aren’t just spending their money online, they’re keeping it there practically full-time by using the online features offered from their financial institutions. Online banking and online shopping are similar in many ways: they are easy to use, highly accessible, allow you to remain seated comfortably at home and can even help you save money. Here are four reasons to check out the online offerings from your financial institution.
1) Cut Down on Fees
When customers use online banking tools, they have less need to go into a branch and work with employees in person. The more banking customers complete online, the more financial institutions can save by cutting back on brick-and-mortar operations. This is good news for you because financial institutions typically pass these savings onto their customers.
In order to encourage the use of online banking practices that save them money, financial institutions offer a variety of incentives and rewards, such as reduced fees and account minimums for direct deposit and online bill pay and rewards for using online statements. Go onto your financial institution’s website or head into a branch to find out what rewards are available to you when you start banking online.
2) Online Banking May Help Save
There is one subtle advantage to banking online that can be a powerful tool for growing your account balance: online banking may help you make fewer withdrawals and save more. Using online tools for banking, instead of repeatedly going into a brick and mortar branch, can have the subconscious effect of making some people feel more disconnected from their money.
The benefit of this is that feeling disconnected might cause you to think about your accounts less often and therefore make fewer withdrawals. This can potentially lead to spending less and saving more in the long run.
3) Mobile Tools Make Online Banking Highly Accessible
Mobile developers and bankers are aware of the growing number of people interested in online banking and are making tools to keep up with the demand.
“Twelve million people used mobile banking services in 2009, according to Frost & Sullivan, a research firm,” states Constance Gustke from Bankrate. “That number will climb to 45 million by 2014.”
"The biggest benefit is that you have more control of your money," says James Van Dyke, president of the financial services and payments research firm Javelin Strategy & Research. "You don't have Internet connections everywhere you go. But you do have a mobile connection." The constant availability of mobile networks means that you can check your funds no matter where you are, even if you don’t have your computer or access to WIFI.
4) You Get the Benefits of Online and Traditional Banking
Many people think that the best rates and smallest fees are offered by online-only financial institutions, but great deals can also be found by using the online tools offered by a traditionally-based financial institution. Now that online banking has become so popular, traditional banks are adding a vast array of online banking options and mobile tools to stay competitive.
When trying to find the best deal, it is important not to just look at the interest rate because so much more goes into saving you money and growing your funds. Using the online tools at a traditional financial institution gives you the best of both worlds. You can take advantage of incentives for banking online and avoid the common hang-ups of online-only banking, such as the potential difficulties of depositing or sending large checks and the inability to form a relationship with an employee who knows your community and your preferences.
If you would like to learn more ways to save, or if you have questions about bank accounts, please don’t hesitate to give one of our financial experts a call.