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 Banks

The advancement of information technology is making life easy for many people. Nowadays, it is possible to do everything from home. A mother can shop for basic necessities, including groceries, through the Internet. Students can study at home and earn degrees from online academic programs. Numerous kinds of business transactions can be facilitated through e-commerce. And more recently, banking has benefited from going online, too.

Know Your Internet Bank

Generally, there are two kinds of Internet banks: depository institutions with websites and the Internet-only banks.

The first kind is a traditional bank that maintains a website where you can also do your banking transactions like deposits, withdrawals, bill payments, etc. The second exists only on the Internet. The government regulates both kinds. In the United States, it is the Federal Deposit Insurance Corporation (FDIC) that monitors the activities of the banking industry.

Just like a regular brick and mortar bank institution, Internet banks are further classified as thrift or national banks. An Internet thrift bank is subjected to the powers of the Office of Thrift Supervision (OTS), while the Office of the Comptroller of the Currency (OCC) supervises those that qualify as national banks.

Tips on Internet Banking

Internet banking has many advantages. Aside from the convenience it provides (you do not have to leave your home and stand in line to do your banking) an Internet bank allows you to set up automatic investment plans. And with higher interest rates than traditional banks, 3.4% to 4%, you get more from your money.

There are, however, some important things you have to consider before opening an account with an Internet bank. Foremost is the credibility of the institution you with which you are entrusting your money. Always check the bank against the listing of the FDIC. The Internet has become a dangerous place for unsuspecting individuals. Make sure the institution you are selecting is legitimate.

You also have to realize that with Internet banking, you may have to do without the kind of customer care that a teller or bank manager can give you, face to face. With Internet banking, everything is automated and mechanical. You may have to be ready to accept this trade off.

A Brief History of Internet Banking

The main purpose that banks have been serving since their inception is keeping our money safe for us. While keeping our money safe, they also let us earn a certain amount of interest on the money deposited with them. Traditional banks have been doing this, and internet banks continue the same function. The only difference is in the way the transactions are made.

Online banking has been around for quite a few years. In fact, it was introduced in the 1980s and has come a long way since then. The last decade has seen a profuse growth in internet banking transactions. Several pieces of legislation have also been introduced in this area.

Though it began in the 1980s, it was only in the mid nineties that internet banking really caught on. What attracts customers to internet banking is the round the clock availability and ease of transactions. Studies estimate that internet banking still has a long way to go. There are several banks that have customers who prefer banking in the traditional ways. Statistics released by the FDIC show that only 40% of the banks in the U.S. offer internet banking facilities worth mentioning. All the others may have an online presence but do not have enough online transactions to justify their presence on the internet.

Some customers have been known to turn to internet banking due to dissatisfaction with standard procedures and practices. The total absence of human interaction appeals to some people. Some customers turn to internet banking facilities for security reasons. This is mainly because of customers being assured of banks’ ability to keep transactions safe and secured.

Most online transactions are made using the Internet Explorer interface. The Internet Explorer has been around for more than ten years now.