The Pros and Cons of Online Banking
When a person or an electronic device is connected to the World Wide Web, it’s said to be online. The Internet technically doesn’t encompass the entire world, but it’s most commonly referred to as the “web”. A blog, for instance, is online since it’s on the web.
An offline organization is offline when it doesn’t have any computers or other devices that help it do what it’s intended to do. An offline government agency is offline if it does not have any Internet connections. A business can only be offline if it doesn’t have any computers, telephones, fax machines, or other similar internet connections. An online learning environment is basically the same as an offline learning environment – if the teacher, student, or subject isn’t online then the class can’t take place. Therefore, online banking, online learning, online email, and online seminars are all forms of offline education.
So, why is online banking better? One reason is, that online banks tend to have much lower charges for their services. Banks that do not have a physical presence can’t enforce high charges for transactions. Also, they can’t enforce time frames for transactions because a customer can transfer funds to another account anytime they want. This is because the funds transfer occurs in real-time. There isn’t any waiting period for a bank to consider an order.
Another advantage of online banking is that you don’t need a fax machine, a phone line, or other electronic devices to use an online banking service. This is because all transactions are done through the Internet and are secure. Online banking accounts have their own security codes that provide protection against hackers. Because all transactions happen in real-time, there is no need to consider other forms of security.
As mentioned earlier, one of the disadvantages is that there is no faxing or photocopying of documents when using online banking. You will not be able to send your financial statements through email because there is no way for you to fax these documents. Some services provide you with a basic banking services like bill payment, checking, and other basic banking transactions. This means that you will need to use your Internet connection to complete these basic banking transactions.
So, does online banking offer higher rates? Yes, but not in every case. Online banks may sometimes offer higher rates to accounts with high balances. They might also offer higher rates to accounts that are in their “family” plans. However, you should still compare the different online banks you come across because their interest rates and services vary.