With the technological innovations, many banking systems have upgraded now from brick-and-mortar structure to online. One can easily access the bank with a smart device and internet connection into it. Even a lot of school banking in Bangladesh offers several advantages over traditional retail banks.
Online banking services include monitoring account statements, paying bills, transferring funds, etc. Also, banks advertise their latest services and products online. All these save your energy and time-consuming trips to the bank. Think of it – no more lines, no more chasing after branch managers.
Isn’t it great?
The importance of online banking worldwide has come to the spotlight, especially during this Corona pandemic – even before that. People now rely on online banking to fill their banking needs from their homes’ comfort and safety.
What Actually Online Banking Is?
Online banking, also called internet banking, is an electronic banking system. It allows the consumers to conduct several financial transactions through the bank’s website or app. Moreover, the online banking system is a part of the core banking system operated by the bank.
Getting 24/7 access to your bank account from your comfort zone is what online banking means. It allows consumers of a bank to stay connected to their finances anytime, anywhere. In today’s busy world, people use the service to avoid in-person visits to a bank.
Online banking system runs through software that provides personal and corporate banking services. It offers a range of web-based services to make your life better. Whenever you open your smart device, your bank is there. Here’s a look at more advantages of using the online banking system.
5 Advantages of Online Banking
Online banking is one of the biggest improvements to easy living in recent years. If you don’t prefer to use cash often and rarely visit the bank, consider using online banking. All you need is to have an account, a secure password, and a good internet connection to get connected.
1. Convenient to Use
No matter where you are, you can now manage your account as long as you have access to the Internet. You can check whether a transaction has cleared. Moreover, it is easy to deposit a birthday check by just uploading a picture to the bank’s app.
The account is easy to open as well as easy to operate from home. You no longer have to stand in a queue to pay your bills. Also, there is no need to keep the receipts of your bills. The transaction statements are readily available.
However, online banking is available 24/7, and you can make a transaction anytime from anywhere. The process is fast and efficient.
2. Higher Interest Rates
Usually, online bank accounts offer higher interest rates compared to a physical bank. You are likely to get higher interest rates on your deposit. At any physical bank branch, checking account rates had an APY (Annual Percentage Yield) of approximately 0.01%. On the other hand, an online bank account has a 2.00% APY that earns around $100 per year.
3. Lower Overheat fees
Online baking tends to have a lower overhead than brick-and-mortar banks. So they can pass some of these savings to you. It means you don’t have to pay extra fees like monthly maintenance charges.
Sometimes, you don’t even require minimum account balance transaction fees. Some large banks may charge you little fees for maintaining your savings account.
4. Fast and Immediate Transfer
More or less, each online banking service happens almost immediately. You can transfer money from your account to other financial institutions, business, and personal accounts. Some bank allows sending money through a mobile app.
5. More Secure and Better Services
In many aspects, online banking is more secure than the traditional banking system. The direct transaction to your bank account eliminates the risk of online scams. What’s more?
You can have access to multiple services of online banking through a mobile app or banking website. You can access the following benefits with just a few clicks.
- Paying the bill by simply login to your bank account
- Raid cash transfer from your account to another
- Deposit cheques online
- Loan application for credit cards, business loan
- Tax payments
- Opening new account
- Request an account statement
- Tracking account transaction and balance
To Conclude With!
Online banking is a game-changer and comes to your rescue in this fast-moving world. It saves the time, energy and paper you spend at your bank branch. On the whole, online banking makes sure you never miss a transaction. Instead, you stay on top of your personal finances.