Capital One has introduced online banking to a national level in the United States. Customers can open savings and checking accounts remotely and then access their balance online without ever needing to visit a physical location. Many local banks and credit unions offer similar services for their customers as well.
Here are the online banking pros and cons to consider.
List of the Online Banking Pros
1. You can pay your bills online.
Recurring payments can be scheduled so that bills are paid automatically on the same day every month. That makes it much easier to manage personal finances.
2. You can transfer money when needed.
If you spent a few extra dollars at the grocery store and your checking account is short, online banking allows you to transfer funds out of your savings account from a mobile device. With online access, you gain total access to all your money.
3. You gain added security.
Online banking is very secure. It eliminates the need to carry cash with debit card access. You can shop through apps, shop online, or pay for local purchases. It only takes a couple of clicks to get the account setup and most financial institutions provide 24/7 customer support.
List of the Online Banking Cons
1. Data breaches are possible.
Although you gain more security by carrying less cash, there is always the possibility of a data breach. No website is 100% foolproof against hacking efforts. Your information could be compromised.
2. Some transactions are not possible.
If you have cash that needs to be deposited into your account, you’ll have to go to a physical location or an ATM. Many banks offer online check deposits today, but cash and certain international transactions must still be done in person.
3. Impulse purchases are harder to avoid.
With cash, once it is gone, you can’t purchase anything else. With online banking, many people fall into a trap where they spend the extra money in their account because they have it. Budgeting skills must be in place for online banking to be a successful user experience.
These online banking pros and cons are just the beginning. Many providers offer unique, individualized experiences to help each customer make the most out of their accounts.