A third advantage of Internet or Online banking is that, in most cases, you do not need to have any special computer program in order to have access to the account. You will need to comply with certain safety aspects, but you’ll likely not need to purchase any special program.

Disadvantages of Internet Online Banking

The primary disadvantage of Internet/Online banking is fear of fraud. Indeed, the fear is very real, more and more banks are reporting fraudulent access to bank accounts using Internet/Online banking.

Consequently, the safety factor is a very real one.

The second disadvantage of Internet/Online banking is that you need to have access to the account. In effect, due to the safety/fraud fears, what this means is that you have to have a home computer with Internet access. Although it possible to do your Internet banking at an Internet café or at the office, it is highly recommended that you actually do this in the privacy of your own home.

The third disadvantage of Internet/Online banking is that you’ll likely need to have in place on your home computer some kind of safety software. To say this is a disadvantage to Internet/Online banking may seem a little harsh though, as in reality you really should have this type of program in place if you are a prudent computer user.

Opening An Internet/Online Bank Account

Once you have decided to open an Internet/Online bank account, the process of opening the account is fairly simple.

 

The following is a basic step-by-step guide:

1: go to the url of the bank you want to open the Internet/Online bank account with
2: log-in and answer the various questions directed at you
3: enter a password and print-off the completed application form
4: send the completed application form to the bank and wait for them to contact you

Now, you may think the last step in that list is a little silly – after all, why have an Internet/Online bank account if you still need to comply with a paper-trail!? The answer to this question is that this is actually out of the bank’s control: in order to have a legally binding contract between you and the bank you need to handwritten sign the form (a legal requirement). At this time, the law surrounding electronic signatures is still fairly new and so until such time as the law has developed some more, this step in the process will still need to be complied with.

10 Questions To Ask Before Opening An Internet/Online Bank Account

The following are 10 questions you should be asking before you open an Internet/Online bank account:

1: what type of service do I need? In other words, do I want access to a current account, savings account or other form of bank account online?
2: does the bank provide an online product in that service?
3: if so, are there going to be any fees for this?
4: is it “really” 24-hour access online banking or does the bank take the system down periodically to update the data?
5: once I have opened the account, what can I actually do? Can I set up direct debits, standing orders? transfer requests? pay utilise bills?
6: will the bank pay interest on my online bank account balance?
7: even though I have an Internet/Online account, does the bank still have a ‘real’ presence in my neighbourhood (just case there are any issues where you would like to discuss things face-to-face with the bank manager)?
8: how often will the bank send me statements?
9: will I have an account manager who I can contact if there are any problems?
10: what safety measures are in place?