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How the average person can save money quickly and easily

Benefits And Savings Of Online Only Banking

Benefits and Savings of Using Online Only Banking

online only banking

online only banking

Banking suffered a major change after the subprime mortgage crisis, which has helped online only banking. Many banks needed to recoup losses, which created many monthly fees with little possibility of getting out of them. Where it used to be a free checking out product existed, today such things are difficult to find from regular banks. A person needs to have a certain amount in direct deposit or minimum account balance to avoid regular bank fees. Online banking is different. It is banking with many benefits and potential savings.

Savings found in Online Only Banking

The first savings is monthly fees. There are also no minimums required to open an account with several of the trusted online banking services. At least one offers a checking/savings account where interest is actually accrued on a monthly basis ensuring the account owner is making a little from their account. This is not to say fees don’t exist as there are overdrafts, stop payment, and some have ATM fees. However, to open a checking account and use it to make payments and buy goods, one is not subject to any monthly fees or specific minimums to keep the account open.

The second savings from online only banking is avoidance of checks and potential fees from other sources. These are also significant benefits to banking online.

Banking Online with ACH Payments

online banking

online only banking

An ACH payment is the most popular way to pay bills and make other payments. Most checking accounts online or off have online banking options. All bill payments that need to be made can be automatically debited from the account on the specific date requested by the bank account owner. Student loans, credit cards, energy, utilities, rent, mortgages, and many other expenses a person might have can be automatically debited each month. These automatic payments require little thought other than to make sure the amount is correct and the proper date is chosen. For bills that come out on the same date every month at the same amount, they can be set up and left alone.

This brings in another saving—time. You can save time using online banking because most of your bills can be set up once and you can simply ignore them. All it takes is making certain you have the money in the account; therefore, you do need to budget properly.

You no longer need to buy checks to pay bills when you bank online. This helps you save money.

Since most of the bills you pay can be set up through your bank account you also save on fees that may otherwise be charged. Sometimes if you go through a phone system to pay with a debit or credit card or use an automatic withdrawal from the company, you can face charges for the processing. With online banking systems you can avoid these fees.

Online Banks are Growing

The popularity of online banks is growing. It is now possible to use online banking for all your monetary needs because the demand to become electronic in banking makes it easier to pay all your bills through a bank.

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