5 Benefits of Online Banking

A few decades ago, personal banking was significantly more time-consuming. You had no choice but to visit a branch location to make deposits, send money or check on your account balance. Fortunately, technology has made things much easier!

The dawn of the Internet ushered in a new way to manage your finances. Online banking revolutionized personal banking, providing a slew of game-changing benefits.

Round-the-Clock Access

It's never been easier to take control of your finances. Instead of visiting a local branch, online banking lets you access many features from the comforts of home. Log onto your bank's website or use its online banking app to check your balance, pay bills, initiate transfers and more.

The beauty of online banking is that it's available 24 hours a day, seven days a week. No more waiting until business hours to take care of your affairs.

Banking on the Go

Another significant perk is mobile banking. Most financial institutes nowadays have an online banking app. You can access your account and various services from your smartphone or tablet. Check your balance while you shop, keep up with bills while traveling and have peace of mind wherever you go.

Easy Synchronization

Do you use third-party platforms to manage your money? You're not alone.

Many people use personal financing apps to make investments or manage multiple income streams. Some use apps to create spreadsheets and budgets. Whatever the case, online banking easily synchronizes with these services.

Connect your account to improve accuracy and convenience.

Greater Transaction Visibility

The days of having to log all transactions in your checkbook are over. Now, you can refer to your online banking profile to look closely at how you spend. Online banking platforms detail every transaction and often update in minutes to reflect an accurate balance.

Enhanced Record-Keeping

In addition to having easy access to transaction history, online banking makes record-keeping a breeze. Most online banks offer years of statements, relevant tax forms and more. This small detail makes a big difference when gathering documents for a loan or investment.

Read a similar article about PNC bank online banking info here at this page.

What Happens to My Money if a Bank Goes Bankrupt?

When most people think of keeping their money safe, their minds automatically go to putting everything in the bank. Financial institutions are mainly safe, but they're not immune to bankruptcy.

Banks can fail, go out of business, and get bought up by other companies. It happens more frequently than people realize. At least a handful of banks go out of business each year.

If that were to occur at your bank, what would happen to your money?

FDIC to the Rescue

What happens to your money depends on the bank itself and the type of account you have. You can breathe a little easier if you have an FDIC insured checking account.

Most consumer checking accounts and financial products have FDIC insurance. The Federal Deposit Insurance Corporation (FDIC) is a government agency that insures deposit accounts. That includes traditional checking accounts, savings accounts, CDs, etc.

FDIC typically covers $250,000. That applies to single and joint accounts. It also covers each beneficiary in a revocable trust and the deposited amount of retirement accounts. Unfortunately, the FDIC insurance doesn't apply to investments for retirement or money market accounts.

Do You Have an FDIC Insured Checking Account?

Always ensure that you're getting FDIC coverage when opening a checking account. Usually, banks will have official FDIC signage at bank locations, on websites, and within apps. They make the coverage well-known, so you should have no problem checking.

You can also call the FDIC's toll-free number or perform a search on the official website to learn about your bank's coverage. If you don't have FDIC coverage, you may want to consider moving your money. Financial experts also recommend splitting your money into multiple accounts if you have more than $250,000 in liquid assets.

Getting Your Money Back

When a bank experiences financial straits, the panic that ensues is always stressful. But don't let yourself be a part of it. Resist the urge to withdraw all your money when you hear of bankruptcy.

Not only does that put you at risk, but you'll likely find that all funds are frozen anyway. Be patient. The FDIC usually takes several days to take care of administrative duties. Your money will move to another bank that acquires the deposit accounts, or the FDIC will send you a check directly.

Read a similar article about tracking your household bills here at this page.