Online banking offers you a quick and convenient way to manage your money. In fact, though it varies from bank to bank, there are generally few types of transactions or other management actions that cannot be done online with an established account. Because this type of process deals directly with people's money, security measures must be robust, and most banks have layers of security at work. Overall, online services are a type of banking that opens access to an efficient way to manage your money.
Online banking systems allow you to log in through their website and view your account information. There may be several passwords or log-in codes you have to input to gain access to your account. You can check your current balance and balance history, initiate transfers between accounts, and view account activity. You can also order checks and view check images with this type of banking service.
Deposits and Payments
Direct deposit is a type of banking that allows you to provide a routing number so money can be transferred into your account automatically. For example, employers often use direct deposit to automatically deposit paychecks. This is an electronic deposit done online. It is also possible to set up automatic payments so that you can pay bills and have the amount withdrawn electronically from your account. This type of banking is an easy way to pay recurring bills like utility payments and insurance premiums.
Debit cards work like credit cards except that they automatically withdraw money from your bank account, and are one of the most common types of online banking transactions. When you use a debit card, information about the purchase is put into a computer system and then transmitted online to your bank, where the transaction is processed within your account.
E-statements, or electronic statements, are your regular bank statements made available online. According to GSA Federal Credit Union, e-statements are guarded by electronic safeguards, and are actually less likely to obtained by identity thieves than a paper statement sent through the mail. Many banks and credit unions recommend this type of online banking for security reasons.