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Internet banking has proven to be very popular with more and more financial
institutions trying to jump on the band wagon. They offer the same services
that you can get in a branch but their rates are more beneficial. Credit
cards, mortgages and loans are more viable options for the borrower but
the real jewel in the crown are the savings accounts currently available.
These advantages of detailed below:
Savings Accounts:
(a) Higher interest rates are possible due to the savings made by the
reduction in overheads and employees that the majority of internet companies
benefit from.
(b) Access to your account 24 hours a day, seven days a week from any
computer with internet capability.
(c) Service mobility means whether you are in this country or abroad you
are always in touch with your finances.
(d) Transaction speed practiced by online banks are executed and authorised
quicker than the process speeds expected of an ATM machine.
(e) Efficiency of your account is possible access and manage all your
bank accounts, including the transfer of funds or creation of standing
orders, from a high security orientated website.
(f) The effectiveness of implementing sophisticated tools, such as stock
quotes, portfolio management programs, account aggregation and rate alerts
means that you can manage your finances and assets more effectively.
Though, it is not all good news. Banking online does have some drawbacks
and these disadvantages are explained below:
(a) Time can be consumed as online banking services are usually setup
and registered in any of the branches associated with the bank. Some form
of identification needs to be shown and forms signed to establish that
you are who you claim to be.
(b) Learning the fundamentals of the website could prove to be difficult
if you are not familiar with the online banking process. Their navigation
tools are not necessarily user friendly due to the complexity of their
service so it could prove frustrating.
(c) Upgrading software and services due to the integration of new online
systems could cause the customer some confusion. The likelihood of re-enter
account information and downloading new software to make the service accessible
could prove a turn-off.
(d) Online banking does not offer peace of mind when you interact with
its services. As this is a new technology there will be areas of grey
that the accountholder will encounter. Change is often greeted with scepticism
and this will prove no different.
Internet banking comes with a high level of security but it does not
account for your actions. Follow these simple rules to limit the chances
of a security breach to your financial details:
(a) Passwords that are associated with your account must be changed on
a regular basis.
(b) PIN numbers and passwords should never be disclosed to anyone.
(c) Unexpected email from your bank may prove to be deceptive so use caution.
Only follow links in such emails once you have established their validity.
Calling the banks general number will usually put you in contact with
someone who can confirm if the email is genuine or not.
(d) Fraudulent transactions can be dealt with swiftly by checking your
account daily.
(e) Public computer terminals should never be used to access your bank
account details.
(f) Unsolicited emails should always be treated as suspicious
(g) Anti-virus software being installed on your machine will limit the
possibility of vital information being stolen or corrupted.
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