FAQs on banking online

Banking online is an easy way to manage your bank account over the internet. This means you don’t have to physically go to the bank to your normal banking business, you do that in the comfort of your home or office, or even while on the go! Here are some questions and answers to provide you an overview of online banking possibilities.

Is online banking secure?
Generally, online banking is secure. Banks invest heavily in their computing hardware and software systems to protect banking transaction. Keep in mind if you use unsecured internet connection or easy to guess passwords your bank accounts cannot be protected from unauthorized use even by a very sophisticated computing environment on the bank’s end.
What are the fees for Banking Online?
This depends on the bank. Typically you can do many normal transactions over the internet without paying a cent. For example, you can pay bills online from your checking account. You can also transfer money between your accounts.
What types of services can I expect to receive from online banking?

The following services are typically available from your online banking sessions:

  • Request bill pay service - to pay your bills, for instance
  • View balance of your accounts
  • Verify a deposit or withdraw is made instantly
  • Request change of address – when you move, for example
  • Add new bank accounts – when you open a new account
  • remove bank accounts – when you close an account, it may continue to show up in your online sessions. You can initiate a removal, if you want.
  • reorder checks – ordering checks is just a click away
  • request a replacement for check or debit card
  • request a cleared check
  • request current PIN mailing
  • request e-statements of your accounts – with this, your account statements will be available to you online
  • request "stop payments" – there may be a charge for this service, this is likely the same as you would do by other means.
What types of accounts can I transfer funds to and from?
Typically, in your account with the same bank, you can transfers funds as indicated below:
Type of account Transfer From Transfer To
Checking Yes Yes
Savings Yes Yes
Add-on Certificate of Deposit (CD) No Yes
Mortgages No Yes
Credit Cards Yes Yes
What is online bill pay all about?
Instead of writing a check, you simply tell the bank:
  • who you want to pay,
  • how much you want to pay,
  • and when.

The bank even stores your payee information for future payments. When the next time the payment is due, simply indicate the payee, how much and when the payment should go out. This is a very convenient way of paying. If you have the option of paying online with the payee (the creditor: your mortgage company, your credit card companies, telephone bill company, etc.) you have to login to your each account to make the payment. However, with online banking you can pay all in one session, if you know in advance how much you have to pay.

Here are some tips if you are using a bill pay online feature:

  • Before making a payment, verify your payee's address and account information.
  • If you cannot find the right payment address, contact the company you are sending payment to.
  • Schedule your payment at least a few days before the bill due date.
  • Make sure your account will have funds available to pay the scheduled bill.
  • Remember to check your statement from your payee to make sure your account is credited. Also, make sure your payee information remains the same as long as you use the online bill pay feature. If there is any change, remember to update your banking account information.
When are funds the withdrawn from my account for a online bill payment?
The funds are withdrawn from your account on the day you schedule (when making online the bill payment). If your scheduled date is a non-business day or holdiay, the funds are withdrawn from your account the following day. This can delay the payment to your payee. So make sure you give enough time for your payment to clear. You can always cancel a payment before it is scheduled to post to your account.
Can I set-up my account for making payments automatically?
Yes, this works best when you know in advance a fixed amount you have to pay each month. For example, if your mortgage payment is $1350, you know you can set this to auto pay. As such, each month your account will be deducted $1350. If you have a variable expense such as a utility bill, an auto-pay option may not be the best option in this case unless you want to pay a fixed amount regardless of what the bill is.
Can I view a list of my deposits or withdrawals from my accounts?
Yes, you can see all of you account activity online. For deposits, the online account information will show you the deposit date, amount of deposit and the balance for that date. For check-withdrawals, you can see images of the checks, if it was a check-withdrawal.
Posted on 11/3/2006
by Raj Singh