how online banking works
online banking is a popular way of doing business with a bank with online banking you aren t required to visit a bank branch to complete most of your basic banking transactions you can do all of this at your convenience wherever you want at home at work or on the go online banking can be done using a browser or app mobile banking is online banking that is done on a phone or tablet here are some of common ways you can use online banking with online banking you don t need to visit a physical bank branch but you can do it wherever you want at home work or on the go in addition you can typically do online banking 24 7 however customer support might not be available at all hours you can do online banking through a financial institution s web portal using a web browser such as chrome or safari through a mobile app this allows you to access services from many locations 1you can usually deposit a check through a mobile app using a process known as remote deposit capture enter the check amount then use the app to take a photo of the front and back of the check to complete the deposit many banks and credit unions offer tools to help you review and balance your budget built into apps or websites you may also be able to track spending trends or track savings toward a goal online banking transactions vary from one financial institution to another most banks generally provide essential services such as electronic transfers and bill payments some banks even let you set up new checking or cd accounts or apply for credit cards through web portals other online functions include ordering checks stopping payments on checks or reporting a change of address online banking may provide fewer services than traditional banking does for instance you can t exchange foreign currency you may be unable to complete a credit application online such as a mortgage application instead some banking business must be carried out at a bank or credit union branch online banksonline banks operate exclusively online meaning they don t operate branches where you can conduct business in person the best online banks offer low cost or free banking plus above average interest rates on savings accounts certificates of deposit cds and money market accounts these banks handle customer service by phone email or online chat rather than in person prominent online banks in the u s include ally bank discover bank and synchrony bank online only banks might not provide direct automatic teller machine atm access but usually enable customers to use atms at other banks and retail stores they might even reimburse some or all of the atm fees other financial institutions charge the savings gained by not maintaining physical branches typically allows online banks to deliver significant savings on banking fees while you can deposit or take out a certain amount of cash at an atm or store most online banks impose a dollar limit as of october 2023 just 6 of u s adults with bank accounts reported their primary bank was an online only bank 2pros and cons of online bankingconvenientfast and efficienteasy to monitor accountscustomer service challengestech and connectivity requiredhacking risk