Friday, June 24, 2011

Why Use an Online Bank Instead of a Brick and Mortar Bank

Lincoln memorial cent, with the S mintmark of ...Image via WikipediaThe main reason people don't use an online bank is that they are afraid of losing control of their money. This is simply wrong. An online bank will give you the same or added control of you money. If you have made a purchase online you have used the same process that online banks use. 

A credit transaction is basically a money transfer you are responsible for. You trust your credit card company to complete the transfer of money to the online store so you will receive your purchase through the mail. The online banking system uses the same transfers and safety protocols that the credit card companies use.

Everyday when I go to work I pass by my bank. The only time I stop by is to use the ATM. My income is directly deposited into the bank weekly. I never go in the bank. Over the last 15 years I have used this bank I have gone in 3 times. It's not necessary. All my transactions are done by computer. I check my balance, deposits, and my online billpay on my computer at home. If I need checks, I order them online and they are delivered by mail. There is no reason to go to the bank for anything but my ATM use.

Benefits to Online Banking.
Interest on your account balance. The bulk of brick and mortar banks give little or no interest. Online banks give over 1% interest and even more on their CD's. When you don't have a physical building to maintain and pay for you have more money to pay interest and give rewards on checking accounts.

Automation for your finances.
Automation of your finances means using the banks online billpay services. These free services allow you to pay your bills with a few clicks of your mouse. Billpay does all the work when paying your bills online. It's easy to set up. You can set up billpay to pay your bills for any day or any month way in advance. You can even set up billpay to pay your bills a year in advance if you wish.

Automation of your saving.
Just like setting up your bills to be paid online, you can set up your saving to be automatic. Set a weekly, bi-weekly, or monthly transfer of money to your savings account. You can even set up transfers to your stock and mutual fund accounts.

How to find an Online bank.

Google has an online comparison site that shows the details on different banking an saving accounts. Got to Google Comparison Savings Accounts to see what's available.

An online bank I use is PerkStreet Financial. PerkStreet Financial is the only checking account that has rewards for using your debit card. Customers have the choice of cash back, music downloads, or a free coffee. PerkStreets claim to fame is that just by using your debit card on just your normal purchases, you can easily earn $600 cash back every year.

Improve your financial life with the PerkStreet FinancialSM Debit MasterCard®. Save money, have fun and stay on budget with the only unlimited 2% cash back debit card. Don't miss out. Sign up today.

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