Online Banking- Is it advisable?

15Apr

Filed Under: Banking by: admin

Online banking today has become an accepted option over traditional banking. Almost every bank today across the globe is encouraging its customers to perform online transactions. Online banking though very convenient method of banking has its own disadvantages. I have tried to put some pros and cons of online banking which may be useful for readers. Some advantages of online banking include:

No business hours constraints for making transactions. • Customer can access their account anytime and from anywhere as you only require an internet connected computer system with your online banking user address and password.
Since online banking is free, banks do not have to pay for the teller machines and office space decreasing the overhead costs to banks and in turn reducing the fees for customers.
You do not have to physically go to bank during business hours and wait in queue to make your deposit or withdrawals.
Transactions within the same ban can be completed within hours using online banking. Also some banks provide the privilege to complete the transactions within external banks in 24 hours.
You can pay your bills electronically using online banking services. Loan application and loan repayments can also be completed with this service.

It is impossible to have so many advantages without any ill effects, some disadvantages of online banking includes:

Security is major issue with online banking, although online banking is conducted through secure websites,, there are chances of leaking your personal information through many shopping websites.
Cash deposit and check deposit cannot be carried out through online banking and you need to visit bank branch or collection centre for such deposits to be completed.
If you like to see the banker you are dealing with, then it is difficult for you to perform online banking.
With online banking you cannot convert currency or change forms of tender.

Tags: Banking, Finance, internet banking, online banking