Internet Banks
Consider the fact that you are taking this class solely from a computer. Have you ever thought about using a bank that is only accessible through your computer? This type of bank is called an Internet bank. Internet banks are just like traditional banks – they provide savings and checking accounts, online bill pay, and allow you to transfer funds, but, they do it all online! You can deposit funds into your account via wire transfer, direct deposit of pay checks or by mailing a check to your bank’s physical address for deposit. Some internet banks even allow you to deposit checks to your account via smartphone - using the bank's app.
Internet banks also provide ATM cards and credit cards. Most commercial banks and credit unions charge usage fees when you use your ATM card at an ATM machine that is not associated with your bank. Internet banks, however, often do not charge ATM usage fees. This is because Internet banks don't typically have physical ATM machines; therefore, you have to use ATM machines not associated with your Internet bank to withdraw money from your account. In addition, it is very important to find out if an Internet bank is FDIC-insured before opening any type of accounts. You want to make sure your money is protected.
You can learn more about Internet banking at the following website:
Internet Banks vs. Brick and Mortar Banks
Remember, Internet banks may be convenient, but it does not provide you with the same level of service that you receive from going to the bank and dealing with a teller. Personal attention has its advantages. Getting to know the workers at your local bank will help you develop a relationship, which in turn can provide added protection. If your local bank teller recognizes you, then they will report fraudulent activity if someone else tries to impersonate you.
On the other hand, Internet banks are very environmentally friendly. Since all transactions take place online and all documentation is digital, very little paper is wasted. Additionally, Internet banks are convenient for people who move somewhat frequently, such as those in the military or in civil service. Since accounts are hosted online, you can be anywhere in the world and still have access to your money.
It is important to weigh the pros and cons of Internet banking with those of using a physical bank.
