Internet Banking Security and Safety

Is Online Banking A Safe Choice

Many people hesitate to take advantage of Internet banking because they aren’t confident it is a safe and secure method for conducting financial business. Fortunately Internet banking is extremely safe and becoming safer and more secure every day. Currently the Internet sends information from computer to computer using unsecured lines of communication. Normally that would allow anyone to access information transferred from one computer to another.

Most banks however provide secure financial service networks using Secure Sockets Layers or other technology that encrypts information you send over the Internet. That means the data you send from one computer to another is encrypted to prevent outsiders from peaking in and seeing your private information.

This technology, referred to as SSL technology is now accepted or compatible with most browsers including Internet Explorer and Netscape Navigator. Usually you’ll see a little yellow padlock in the right lower hand corner of your screen, indicating that a page is being secured using this technology.

Other Security Measures

Most Internet banks offer other protective measures to ensure your information is kept safe and secure. Some examples of other security measures in place include:

Secure logins

You will create your own online access account number and code that you will need each time you log in.

Limited logins

Many banks limit the number of times you can attempt to log in per day and lock you out if you exceed this. That way someone can’t attempt to break your login code easily.

Limited sessions

Most banks offer limited sessions that require you to re-login after you have been inactive for a period of time preventing anyone from viewing your information if you leave your computer for too long.

Internet Banking Vs Traditional Banking

How Internet Banking Works

Internet banking works much like traditional banking. The primary difference is you are accessing your account and information, making payments and reconciling statements using your computer rather than paper or the phone to complete transactions. Instead of going down to your local branch office when you bank online you can accomplish multiple tasks at once with the click of a button.

Online banking is rapidly becoming more and more popular as consumers recognize the advantages online banking has to offer. For one most banks charge fewer fees if you take advantage of their online banking services. You can also stop receiving paper statements if you like in many cases and conduct 95% of your business over the Web when you take advantage of Internet banking.

What Internet Banks Do

What to Internet Banks do? The same things traditional banks do. They hold onto our money and lend it out to others respectively. The manage loans and help us keep track of our finances. Chances are if you own a bank account at a traditional bank they offer some type of Internet banking or online services. The next time you stop into your branch office you should ask them about online banking. You may find once you start you have no desire to go back to traditional banking.

For those that have a hard time keeping track of paper statements, Internet banking is a life saver. Internet banking is also advantageous for frequent travelers that need to keep a close eye on their finances from abroad.

Ideal Candidates For Internet Banking

Best Candidates For Internet Banking

Internet banking works well for just about anyone, but for some people Internet banking is better suited than for others. If you are someone who has dozens of bills to pay every month, you’ll probably benefit from online banking. Online banking will save you time and money. You can streamline your banking and payment processes with the click of a button and keep track of statements and payments without a huge paper trail. For many this tiny benefit is enough to convert them to Internet banking.

Other idea candidates include those who use financial software programs like Quicken. Most banks allow you to download your check register and statement information right into your financial software program. This makes monthly reconciliation’s go a lot faster and more accurately then if you were doing them by hand.

Internet Banking And Business

Internet banking is also a good idea for anyone that owns their own business or a virtual office. If you fall into this category than chances are you are already online most of the time. Why not spend a few extra minutes checking your bank statements, setting up direct deposit and handling other financial affairs over the Web? You can even set up a business account and manage it from your virtual office when you take advantage of Internet banking. The best news? You’ll probably incur fewer fees when taking advantage of online banking services than if you bank the traditional way.