The Benefits of Online Banking
Many people already perform banking transactions online and more people are doing so as time goes on. Online banking takes many forms, from nothing more than a recurring bill payment to a by your traditional bank, to a high-yield account at an online bank that has no physical presence.
The best bank Web sites provide a wide array of services, from allowing you check your credit card accounts, look at both your banking and brokerage accounts, to making trades, and getting free stock quotes.
Banks have been obvious hacker targets since they began offering services online, but have gone to great lengths to increase the security of their transactions in recent years. Still, 'phishing' scams thrive online. Phishing is when an email or site is designed to appear legitimate (for example, by using your bank’s name) for the purpose of luring unsuspecting users into giving over their account details and passwords. That information is then used to steal the victim's money or identity. Most banks don’t not conduct business in this way over email; if you see a suspicious email that is supposed to have come from your bank, call them to verify.
If you anticipate doing all of your banking online, consider an Internet bank if you are looking for the best possible rates. There are tradeoffs; for example online banks do not typically have ATMs, and they are sometimes not FDIC-insured.