Improve Your Financial Well-Being with Online Banking by Melanie Broemsen

Next year, as online banking celebrates its 15-year anniversary, nearly two-thirds of American households will be banking online according to a recent Forrester study titled "U.S. Online Banking." A growing trend, especially among Baby Boomers and Gen-Xers, online banking is a quick, convenient and cost-effective way to manage your personal and business finances.
If you're already utilizing online banking, you know what a blessing it can be. You can pay bills or view your checking account balance in the middle of the night and transfer funds, even on a Sunday.
Despite all the obvious benefits, some people are still hesitant to try banking on the Internet. Most naysayers of online banking, like my parents, cite cases of identity theft and other security risks as the primary reason in foregoing electronic banking systems.
Today, however, most financial institutions use SSL (Secure Sockets Layer), a cryptographic protocol that ensures data integrity and security. Other advanced security features, like multi-factor authentication (a practice that requires users to verify their identity several times before providing account access), make online banking a safe alternative to traditional banking.
In fact, if you haven't given online banking a try, you may want to reconsider: Banking online offers added benefits that can help you improve your financial well-being.
The benefits of online banking include:
Convenience - Say goodbye to banker's hours. With an online bank account, you can check your balance, as well as schedule fund transfers, bill payments and more; 24-hours a day, any day of the week. Not only are your transactions completed more quickly - with just a few clicks of the mouse - but you'll also save the time, gas and frustration associated with driving through traffic to your local branch. Granted, you may still need to make the occasional trip to the bank or credit union to perform deposits and more complicated transactions. However, you'll be able to conveniently manage the majority of your banking online.
Cost - Usually provided as a free service, online bank accounts offer better value and cost less than a traditional savings or checking account. However, before you open a bank account online, you should understand the difference between a direct bank and a traditional bank, both of which offer what we refer to as "online banking."
Most traditional banks offer an online banking component to complement their brick-and-mortar services. In addition to utilizing your online bank account, you can visit a local branch to make deposits, etc. However, direct banks operate online and by phone only. Therefore, they have lower overhead costs. This cost-savings is often passed along to consumers in the form of perks, such as higher interest rates and lower fees. Over time, the savings associated with an online account at a direct bank can really add up. Whether you're looking to stretch your dollars or reach your savings goal a little faster, these online banking benefits can help.
Control - Perhaps one of the best features of online banking is the control over your financial future that it provides. With all your financial information easily accessible in a digital format, you can quickly diagnose your financial well-being, as well as develop a plan for improvement, with the help of some pretty affordable software.
Unlike paper statements, most online banking systems can be easily integrated with personal finance software, like Quicken®, Microsoft Money® and Mint.com. These programs can help you improve your present and future financial health by budgeting your money, reminding you when to pay bills and tracking your spending, as well as recommending feasible savings and debt reduction plans that can help you reach your important financial goals faster. They can even help you prepare your taxes.
Online banking is good for businesses, too. Commercial bank accounts can be integrated with accounting software like Greentree®, making it easier to efficiently track and analyze your company's financial health.
Online banking has many consumer benefits. In addition to convenience, online banking typically makes your money work a little harder, whether it's in the form of a higher interest rate or fee reduction. Most online banking systems also make it easy for you to perform a financial checkup on a regular basis, improving the chances that you'll not only reach your financial goals, but also reach them faster. However, if you're still not sure if online banking is right for you, you can visit nationwidebank.com for more information, including the features and benefits of online banking at Nationwide Bank®.
About the Author
Melanie Broemsen is a content specialist at Rosetta, one of the top 10 interactive agencies in the U.S. Broemsen has a degree in Public Relations from Kent State University and more than 10 years of experience in interactive marketing.