2013-09-16



Online checking accounts are becoming the new phenomena. If you’re like most, you’ve heard of online banking but have never tried it. If you want a bank account that’s easy to manage and is convenient, it’s time to learn how online checking accounts work. Because the overhead associated with online banking is much lower than the overhead for traditional banks, most account holders pay much less in fees by choosing an online bank. Here’s a straightforward guide to understanding how online checking accounts work so that you can make an informed decision before you open an account.

Changing the Paper-Based Aspects of Banking

You’re probably familiar with making deposits at a bank branch, filling out deposit slips, and depositing paper checks. In today’s modern world, you don’t need to use all of that paper just to deposit money into your account or withdraw money from your checking account. Online banking changes the way that consumers and banks do business, and eliminates the need for physical branches. By using a personal or business computer that has access to the Internet, you can do everything that you would normally do at a brick and mortar bank electronically via the Internet. By using electronic tools and technology, online banks can reduce overhead by eliminating paper handling and tellers.

Another Aspect that is completely changed is how online banking has made it more simple to manage your personal finances. By giving you access to your account online they provide detailed information about every transaction that you have completed through your checking account. This will prevent any human error when balancing the checkbook.  This will even be able to help within paying household bills through the debit cards and can minimize the amount of time that it will take to pay bills. With less overhead costs and the amount of convenience it offers online checking accounts will only continue to grow.

How Does an Online Checking Account Work?

There are a variety of virtual banks offering fully online checking accounts to consumers. These virtual banks conduct business entirely online, and there are no physical branch locations for you to visit to make deposits or withdrawals. While there isn’t a branch, an online bank typically offers all of the checking account services you’d expect from a traditional bank. You’ll still have an ATM card, you can still order cheap checks, and you can still call to check your balance. The biggest difference is that you will deposit physical checks in an ATM or by mail, and that you must transfer money into a separate account or make ATM withdrawals to get cash. In exchange for conducting business online, you will pay lower surcharges and fees with an online account.

Online checking accounts are convenient and sophisticated. If you want an FDIC-insured account that is easy to manage and access, consider choosing a virtual bank. With the right bank, you can easily manage your checking account with software programs and still pay less for the service. Protect your money, weigh your options, and choose a bank that you can trust.



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