Online banking is one of the services that retail banks, credit unions, and building societies provide their customers with. There are also some banks that are purely online so they have no branches with tellers that you interact with. The growing use of credit cards, debit cards, and other online payment services like PayPal adds to the diverse ways by which people move money around. All this makes people more comfortable with the idea of virtual monetary transactions where they’re not using cash and that opens up opportunities for online banking.

So what are some of the reasons why e-banking is an attractive option for consumers?

• Cheaper and May Offer Higher Interest Rates on Savings

One of the reasons why some are flocking to virtual banks or direct banks is that these are cheaper. People are getting frustrated with the various fees that banks are charging for their services. Direct banks do not have any branch network and they provide their services thru e-banking. This helps them avoid the overhead costs of maintaining a brick-and-mortar branch so they don’t need to charge so many fees. Many direct banks also offer online savings accounts that provide customers with higher interest rates compared to traditional banks.

• Convenience

Many traditional banks are now offering online banking services as an added service to their customers. U.S. bank Wells Fargo for example, is offering the Wells Fargo Online service. It’s convenient for customers because they can monitor their accounts and pay bills all from the comfort of their own homes. Check your bank if you can enroll in their online banking service to take advantage of these services.

• Security

Many may be turned away from online banking by the thought that it is not as safe as transacting with traditional banks. However, traditional banks also keep their customers’ financial information stored online so the risk is basically the same. Taking the same precautions that you take when protecting your other online accounts are just as important or even more important in order for you to protect your online bank information.

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