In order to determine the advantages and disadvantages of internet banking, one must ask an important question from the get-go. Is online banking safe?
If you visit the FDIC website, there are several pieces of information to be aware of before deciding to bank online.
* “Read key information about the bank posted on its website.
* Protect yourself from fraudulent websites.
* Verify the bank’s insurance status.
* Check the FDIC’s online database of FDIC-insured institutions.
* Be aware that a bank may use a different name for its online and traditional services.”
Having said that, the advantages of internet banking include the following:
* Unlike traditional banks, internet banks are open 24/7.
* You can access your bank from any country.
* Transactions and confirmations are much quicker than traditional banking processes.
* You can utilize a multitude of bank accounts from one banking website.
* Most online banks offer the latest tools and software to make your online banking easier to use.
What are the disadvantages of internet banking?
* If you have been a victim of identity theft, you may think long and hard about giving out personal information online.
* Some banking websites may be difficult to utilize. It may take some time before you understand the ins and outs of internet banking.
* There are instances in which banks change their website structure or add new features which may take time to understand. You may also have to give them your account information all over again when this happens.
* At a time when identity theft is at an all-time high, and banks are closing or merging, it may be wise to visit the bank in question (if they have a physical office) and determine if their online banking services are right for you.
* It may be difficult to get used to an online bank. After all, you are giving them vital information that could be accessed by unscrupulous individuals.
While there are many individuals who swear by online banking, there are others who would rather deal with their banks on a personalized basis. Regardless of whether or not you decide to use the internet, it’s a good idea to read the FDIC website information, talk to the personnel at the bank (if applicable), and then make a decision based upon everything you have learned.