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Most people are only familiar with traditional checking accounts. They drive to the bank for basic needs, use the ATM, write checks, and some use a debit card. Online checking accounts are becoming more prominent, and they have many great benefits. There are different kinds of online checking accounts with various features that may benefit some individuals. Here are the pros and cons of an online checking account.

The worst part of having an online checking account is that there is no physical branch that can help you. You can’t go to the bank to get a bank check, cash in change, get something notarized, deposit checks, etc. If basic functions such as depositing and cashing checks, or getting statements is something you do often, an online account might not be right for you. However, if you only need these features on a rare occasion, you could keep a checking or savings account open somewhere to get these features.

The benefits of a online account come when you look at the individual online checking account offered. High interest accounts are available where you can earn a very high interest rate on up to a certain balance if you fulfill certain monthly criteria such as having direct deposit, using your debit card 10 to 15 times, getting online statements, using online banking, and and using online bill pay. There are also ordinary online checking accounts that don’t offer high interest, but they have better overdraft fees. For example, ING Direct’s Electric Orange charges you based on an interest rate of the amount you are over. This means you could be paying pennies if you pay it back right away as opposed to $25 to $35 for each overdraft.

Online checking is convenient for those who have online savings accounts already. Where normally you would have to wait a couple days for the money to be transferred from your savings to regular checking, if it’s with the same bank, it can be instant. You can usually get the money from an ATM or with a check. Some give you a checkbook, and others will mail out checks for you. Either way, if it’s a fit for you, it can make maintaining your checking account much simpler.

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The Pros and Cons Of an Online Checking Account?

In this day and age, the internet has given us the ability to communicate and perform business tasks quickly. From purchasing online to emailing your grandma, the internet has really made tasks fast and easy. Additionally, banks have tapped into the World Wide Web allowing customers to view their online checking account and even pay monthly bills without the hassles of writing a check. It is truly a benefit that eliminates time and paper. If you haven’t packed your check book away, you may want to give your bank a call and find out what they offer when it comes to online banking. After you register, you can view your account activity online. Additionally, you can have monthly bills automatically deducted from you account which is easy and time saving. This sounds great, and it can be as long as you are keeping a handle on your finances. With pros comes cons, and an online checking account at times can become too automated. If you aren’t watching your funds carefully, you could find yourself with numerous overdraft fees. Additionally, if you use your debit card religiously, keep in mind that some merchant systems deduct the money at different times. If you aren’t keeping a written register of your finances, you may forget a charge. Only viewing your online checking account can be a bad habit, and you may find yourself in the negative. Check with your bank, but some may charge a monthly maintenance fee for an online checking account, or transaction fees for bill pay. It still may be less expensive to pay for checks and the cost of postage, so this is definitely something to compare and contrast. Let’s be honest, banks are in business to make money, and it is so important to ask as many questions as you can if you are considering an online checking account that includes bill pay. It is important to weigh the pros and cons, and you may find that it is cheaper to write a check and drop it in the mail.


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