Online Banking

Home Banking systems available through the Internet, provided at their own web sites by traditional banks that also have Brick and Mortar locations (and related overhead), or by banks that exist exclusively on the Internet, called E-Banks, or Virtual Banks. Online banking services, which are accessible through passwords, typically include up-to-date account information; transfers of funds between savings, checking, and credit card accounts; electronic bill paying; the purchase and tracking of Certificates of Deposit (Cds), and other investment services. Some banks charge fees, but all offer the cost savings afforded by instant transfers of funds; once deposits clear, funds can be held in interest-paying accounts until the last minute and miscellaneous fees, such as overdraft charges, are more easily avoided. Proprietary software is provided by some banks to augment on-line services, and generally marketed systems such as Quicken and Microsoft Money can be used to initiate online banking transactions, while providing a range of budget-and tax-related record-keeping services. Also called electronic banking. See also Digital Money; Electronic Wallet; Aggregation.