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Ready for the LeapJan 28 '00 (Updated May 13 '01) Write an essay on this topic.The Bottom Line Internet banking - more efficient and less expensive for the individual Banking Online The Internet offers the allure of never having to write a check again or visit a bank again (except to suck money out of a wall). With the ability to check your account balance in real time and great reporting tools the new breed of online only banks are changing the image of banking as an old stodgy business. The ability to apply for your next car loan or mortgage from the comfort of your own home further reduces your reliance on a traditional “brick-and-mortar” bank.. As with any new products, there is the risk that some institutions might not live up to their promises, so it is wise to check up on them through ratings organization and government agencies before doing business with a company that does not have a proven reputation. Take the leap If you are ready to embrace the future then an online only bank is for you. Most online banks offer multiple account types and the ability to pay bills directly from your account. The fees are usually lower than traditional banks and there are often no minimum account balance requirements. Security First Network Bank (www.sfnb.com) and WingSpan Bank (www.wingspan.com) are the two of the most visible branchless banks although NetBank (www.netbank.com) and Telebanc (www.telebanc.com) offer similar services. Almost all of the banks allow you to download all your account data straight into personal finance software such as Intuit’s Quicken or Microsoft Money. You will have to mail your checks in order to deposit them, but most employers will direct deposit your paycheck into your account making it less of a hassle. Since none of these banks maintain expensive ATM networks, you might have to pay a surcharge on withdrawals from ATM’s, but some have agreements with other banks and even refund a portion of surcharges per month. Paying the bills Not ready to take the full leap yet ? You can use your traditional bank account to pay bills with CheckFree (www.checkfree.com). With this service you can receive E-Bills from companies that provide them , or you can pay your normal bills electronically by linking with your bank account. Transpoint (www.transpoint.com) only allows you to pay E-Bills, and so far they only have five companies that work with the service, but it holds the promise of becoming more useful in the future. Pay My Bills (www.paymybills.com) provides a service that is useful now. You send a “change of address” notice to all your billers and tell them to send the paper bill straight to paymybills – then the bills are scanned and presented to you through the Internet where a few clicks of your mouse can authorize them to be paid through your bank account. Need some cash Need a new car or home ? Don’t feel like making an appointment to trudge to your bank and meet with a suited banker from 9 to 5. Get a loan anytime in your pajamas. Visit MSN Moneycentral (moneycentral.msn.com) for a slick site that asks you to enter all your information then gives you a choice of loans that meets your needs. You can then apply online and have the information sent straight to the bank that is offering the loan. E-Loan offers similar services with connections to over 70 lenders and has a 24 hour turn around time on loan applications. A useful site to get up to date on the latest deals and news regarding credit is bankrate.com (www.bankrate.com) which is a comprehensive guide on everything from credit cards to auto loans. You can even get rate quotes for loan products from 3,500 institutions nationwide. Pretty impressive stuff. Check their credibility Don’t feel so safe conducting so much business online ? You’re not alone; security is the number one reason that many people won’t even make an online purchase, so check up on any company before making the plunge. The government regulates banks and insures that you will get your money bank if they go under. Make sure that your bank is covered at the FDIC (www.fdic.com) and find out more detailed information about the institution. Want to make sure that the bank you choose lives upto it’s promises, check out Gomez Advisors (www.gomezadvisors.com) to see how the different online banks stack up and see user feedbank on each institution.  |
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