Advantages Disadvantages for Internet Banking

Internet banking allows you to compare deals easily.  You can go to different online banks and find out their interest rates and policies about checking and savings accounts.  You can learn what credit cards they offer, and at what rates.  You can compare loan terms.  You can check with the FDIC to check the banks' credibility.

You have a better chance to catch fraudulent use if you have an internet banking account.  When you check your debits and deposits, you will most likely notice if something is there that you did not do.  If someone withdraws money from your account, you will know it as soon as you log on and look over your account.  Then, you can work on correcting the situation long before you would even notice it with conventional banking.

How you can increase security

Your username will either be given to you by your clicks to bricks bank, or you will choose it at your virtual bank.  If you choose it, there will be specific rules about how many characters it must have.  It will also tell you whether you must use both letters and numbers, and capitals and lower case letters.  Choose something that is not guessable.

In any case, you should memorize your password and destroy any paper where it is written down.  Then, you should change your internet banking password frequently.  Do not tell anyone your password, no matter how close you think you are to them.  Unless they are on the account with you, there is no reason for them to know it.

It is also important that, if you do use your computer in public, you assure that no one can see the screen when you are doing internet banking transactions.  You should not let anyone see you use your keyboard either.  While many people feel comfortable setting their laptops up and doing their business anywhere, it is not always wise.

Now the banking problems

Certain people just do not have proper equipment to go on the internet.  If does not take an extremely advanced computer to do internet banking transactions.  However, you do need the basic modern computer equipment with modem.  Most banks now expect you to have a 128-bit encryption browser.  You will also be better off if you have a faster internet connection than dial-up.

Some of the same people also fear using the internet.  Others who will use computers offline will not use them to go on the internet.  They fear for the loss of their privacy.  Many of these people have exaggerated fears in their minds.  For them, internet banking will be impossible, unless they come to terms with their fears.

While there are some problems with internet banking, most of them can be overcome with knowledge and caution.  The other problems are challenges for the future of internet banking.