What Is Internet Banking

Internet banking is one of the easiest ways to conduct banking transactions. Several banking transactions can be conducted using a personal computer hooked up to the Internet. All one needs is a bank account that is activated for transactions on the Internet. All banks offer their customers an internet banking facility.

All transactions are performed over the Internet using a bank’s secure website. The main reason why internet banking is very popular is that it enables banking even during non-banking hours.

Most of the banks’ websites use web browsers as the interface to conduct transactions. These interfaces are made very user friendly so that customers do not have any trouble navigating through the transactions. Transactions like electronic bill payment, downloading of bank statements, online money transfers, and the like are the usual transactions conducted using an Internet banking facility.

For the protection of the customers’ interests, banks use certain measures. Password authentication, encryption, etc., are some of these measures. Banks have to keep on updating the technology used for this purpose, as hackers keep on getting more and more skillful. Banks generally advise their customers to keep on changing passwords at frequent intervals. This lessens the chances of hackers being able to cash in on any passwords that they are able to lay their hands on.

Other protective measures taken by banks are the use of unique login names, transaction numbers, use of two passwords, security token devices capable of generating single use passwords, and digital certificates.

Generally, banks do not charge anything extra for internet banking services. Every time a transaction is made, the account details are updated automatically.

Internet banking is often perceived to be risky, as one may hear of many frauds being perpetuated. Certain automated checks are in place with all Internet banking websites. Multiple attempts to use an incorrect password automatically render the account inactive. The customer then has to go through a detailed procedure to get his Internet banking account reactivated. However, banks keep on updating their technological back ups to ensure that their customers feel safe banking with them.

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.

Internet Banking – What You Need To Know

Internet banking has brought revolutionary changes to the financial world. Now, it has become much easier for you to perform various financial transactions over the Internet right from the comfort and privacy of your home. With the rapid popularity of Internet banking, opening a bank account and performing various transactions are now just a click away. Now there is no need to stand in the queue in order to get a bank account opened.

Technical Requirement To Access Internet Banking

You will be happy to know that you do not need any special hardware or software installed on your computer in order to access Internet banking. All you need is a computer system with Internet access, and you are ready to go. You are given a login ID and password to access your bank account. In most cases, the login ID is either the bank account number, or credit card number or ATM cum Debit card number.

Features Of Internet banking

Some of the tremendous array of features that Internet banking has to offer includes the following:

o You can get the bank statement right in your email inbox. If you are a businessperson, the online bank statement can be very advantageous for you. For example, you can import the data of the bank statement in a personal finance software program such as Quicken or Microsoft Money.

o The facility of electronic fund transfer is a great plus with Internet banking. You can send money online from one account to another either in the same bank or in any different bank.

o You can even make payments for your various utility bills like electricity and telephone bills, from your online bank account.

o You can also use your online account to purchase or sell investment products, such as shares, mutual funds and much more.

o Using the Internet banking, you can comfortably apply for various loans.

o If you have more than one account in a bank, the Internet banking allows you to access the extensive details of all your bank accounts at one place.

However, if you want to keep your experience with the Internet banking safe and pleasant, it is important for you to keep your personal information private and secure, such as your login id, password etc. Again, you should also make sure that when you are through, you log out from your online bank account thoroughly.