Largest Internet Banks

Internet banks, no matter what size, guarantee one thing: accessibility. You can have access to your Internet bank anytime and anywhere as long as you have an Internet connection. You can transfer funds from one account to another, pay your bills, and view your bank transactions and balances whenever you want. Some Internet banks even hook up to vendor sites so that you can purchase your groceries and shop for a new pair of shoes.

Large versus small

Looking for an Internet bank that you think would suit you? Are you unsure if you want to go with the big banks or the small banks? Are you afraid of the instabilities of smaller banks? Or do larger banks intimidate you? You should choose a bank that can address your requirements and that you feel comfortable with. Here’s a comparison so you can make an informed decision.

Smaller banks tend to offer a narrower ranger of online services compared to their larger counterparts. With a smaller pool of funds, smaller Internet banks do not have the flexibility to offer high interest rates. But the opening and maintaining balance required by these banks are lower, too, so it is much easier to open an account with them. If you only need basic Internet banking services such as local fund transfers, deposits, crediting, etc., then these banks may be sufficient.

Large banks, on the other hand, can compensate for many of the shortcomings that their smaller constituents cannot fulfill. Interest rates continue to rise whenever the amount of the transaction rises. Larger banks have a farther reach, allowing them to have more associates worldwide.

The infrastructures of larger Internet banks are also substantially different. Aside from accessing your account, you can also gain access to your accounts via SMS using your GSM handy phones. You can also send instructions to the bank through this technology. Larger banks tend to have more elaborate security systems to ensure the safety of your money.

The History of Internet Banking

Internet banking is a very important part of our new global economy. Most people really seem to take this modern convenience for granted. This article seeks to describe the history leading up to where we are today.

As early as the early 1980s, there was something called ‘distance banking services over electronic media’ which were really the forerunner to the modern online money transfer services. By the late 80’s it became popular to refer to these systems as “online” because they were accessed by connecting to a terminal with a keyboard and monitor (kind of like a PC) in order to connect to the financial systems through a telephone line.

Another precursor to online banking was called ‘Home Banking.’ This form of banking is what we would call telephone banking today but through a computer-like setup. People would call in to a service through the phone line and then send instructions to the bank using touch tone signals.

Online banking services began for the first time on a wide scale in New York City. In 1981, four New York Banks tried offering home banking services. Unfortunately, they jumped on the wrong bandwagon and tried to use the ‘videotex’ system which ultimately was a failure in the US just like beta-vision. It did, however, take off in France.

The United Kingdom also tried to offer early online banking services in 1983 through the Bank of Scotland. This system was similar to the New York System, but used a different brand of terminal to connect to the phone lines. This was commonly known as ‘Homelink’ and it allowed people to view their statements online, transfer money and pay bills. That is pretty amazing for 1983! Especially since the bill payment system worked very much the same as today’s online bill-pay systems that come standard with online financial accounts.

In the 80s there really wasn’t an internet as we know it today. It was really more of a loose web of computers which connected to each other through phone lines. However, the first financial institution to offer internet banking services to all of its members was Stanford Federal Credit Union. That did not come until 1994, another decade after these home banking systems started.

Today, there are many financial institutions that only do business through the internet. They do not have physical locations or tellers or bank branches. The world is certainly changing, but we will never be completely without physical banks.

Internet Banking – Matters To Fact

Internet banking is the new buzz word around the corner. Forget traditional banking and the way you used up to queue to get the transactions done. Internet banking is here to change that all. Now banking is no more taking out time from your schedule and to start with finding a place in the car park and then waiting for your turn to get to the counter. Internet banking gives you the freedom to do banking at your finger clicks.

The easiest and the safest way of banking is here. Introduce yourself to internet banking. Now you can do the transactions sitting right into your office cubicle or from your home. It can be said that with this the new era of banking has arrived and for the better of it. Internet banking is simple for anyone who has a access to internet. It certainly is beneficial compared to the traditional way of banking. You simply use internet instead of using paper or phone to access your account and can enjoy it from virtually anywhere, even if you are on a vacation to Bahamas. Secondly you can have the reports like your account information, monthly statements, reconciliation reports etc. whenever you want to access. No calling up to the bank or the customer care to get a work done, everything is conveniently at the fingertips.

The major concern of a few was the security of Internet banking which is till now well addressed by the security applications or firewalls used by the banks providing this facility or the online banks. Every transaction made through internet banking is completely safe and can be relied upon. Although there are some issues which one need to understand to keep the security levels high. You should try to avoid accessing your account from unsecured lines or machines. In any case do not revel your banking ID and password to anyone even if trying to pose a bank employee. These are the few things which make your internet banking experience wonderful and safe.

There are many benefits of using internet banking like

o It saves a lot of time and effort.

o Can transact with the click of a button.

o Completely safe and secure.

o Fewer fees with most of the services rendered free.

o Can coordinate with your financial software.

o Easy to understand and to use.

o Scores more points over traditional banking.

o Useful for everyone.

That’s why internet banking is a popular service now used by millions of account holders worldwide. Now with the fast growth in the number of users opting for internet banking a no. of online banks is building up to provide service to the customers. These online only banks are virtual but provide quality service to customers offering them with many new and exciting features.