FinanceTalk's Blog

For those of you who have never tried online banking you really do not know what you are missing. It is such a convenient way to pay your bills, keep track of the money in your accounts and make your investments. The beauty of it is that it is all done on secure websites with passwords and layers of protection for your money. This is only part of the convenience.

As well, it is done from your home or office computer during the hours that are easy for you to manage and not necessarily the hours your bank is open. If you have your pay checks deposited directly into your bank account you may never have to visit your bank during business hours. An ATM can provide you cash and you can pay your bills over the Internet. Not only is this convenient, but it usually costs you less to use these services then to do your banking in person.

The use of an Internet service through your bank offers you many services beyond simply paying your bills. You can also get your bank statements this way instead of having them mailed to you. You can transfer money between your various bank accounts. This means all you need to keep in your checking account is just enough to pay your bills until you transfer funds in to pay the next bill.

That allows you to keep your money in your savings account for longer and so to make the maximum amount of interest on your money. You can even use your banks web service to apply for loans or change your loan repayment structure. These applications are all available online. There are even banks that operate solely by offering online banking services.

They have been nicknamed virtual banks. These have the advantage of doing everything for you over the Internet and so can offer higher interest rates and lower costs as they keep their costs down by not having a facility for you to visit.

Other reasons to use these growing web based bank services is that you will never get a check returned to you because bank personnel could not read your handwriting or because you wrote the wrong information on the check. It will be right all the time because you will be feeding it directly into the computer.

You will not have to worry about being late with payments either. As long as you pay the bill a couple of days before its due you will be on time every time. That means having to work late, being ill, or out of town will never again make your payment late; five minutes on a computer, even at an internet cafe and you will be able to pay your bills using your online banking service.

Business checks are written everyday at almost every place of business. At age 18, anyone with the adequate amount of money can open a checking account of his or her own.

One aspect of checking account functions that many account owners are not familiar with the processing of their checks after they have been written. When shopping, the customer many times thinks to his or herself whether he or she should pay cash, charge it, or pay for the purchase with a check. He or she may ponder this question in their mind all the way to the check out counter.

When the customer makes the decision to pay for the merchandise with a check, a long process is started. This process begins when the check is handed over to the cashier. Once all information has been properly placed on the check the cashier then will normally ask for two things, a home phone number and a driver's license number.

Once all of the necessary information has been placed on the check by both the cashier and the customer the check is scanned in the automatic check reader. This check reader recognizes the customers account number, A.B.A. number (or routing number), as well as the check number.

The computer system can then recognize the specific account and check to make sure that there are no returned checks on that account. Once the check is approved, it is then printed or endorsed on the back with all proper information for deposits, including the amount of the purchase, cash back received (if applicable), store location number, date, time, cashier number, and the customer's account number.

The cashier then stores the check in a locked box until it is time for them to go home. All checks are then added together to make sure none are missing and to make sure the cashier put all checks in for the correct amount. All checks received in the office at the end of the day are totaled together and deposited into the bank account.

When the person responsible goes to the bank and makes the deposit for the business, he or she hands a large number of checks to the bank teller. The teller will then verify the amount of the deposit to the total amount of the checks.

After the deposit has been verified and all numbers are correct, the teller will then run the checks through the proof machine to be verified again. The proof machine also encodes the amount on the bottom right hand corner of the check. When all of the work has been ran through the proof machine it is then sorted by an automatic sorter that sorts the checks by their routing numbers.

After the checks have been sorted they are sent to the bank that they have been drawn on. Once the checks arrive at the banks they are drawn on, they are then sorted by their account numbers. As these checks are being sorted they are posted to the account automatically. The checks then, in account number order are placed in a safe filing area so they will not be lost until the bank statements are sent to the account owners.

The check or a copy of the check is then sent to the account owner in the mail with his or her statement. In the case that a copy of the check is sent to the owner the check is kept in a safe place until it can be properly destroyed.

This is only one example of the way a check is cleared through a certain business. Although, the basic concept of check clearing is the same, each individual company may go through its own processing procedure before depositing the check to the bank. Most banks handle their business checks in approximately the same manner.

Since the internet has become a popular place to buy and sell goods, online banking services have made their way into most homes. Easier to pay bills, manage money, and transfer money to other accounts, internet banking is a convenient way to handle money. Many employers now have direct deposit, which makes it easier to put money into one's account. No more trips to the bank every Friday. The money is in the account the night before and is available for use on Friday morning. Most banks now offer some type of banking services on the net. While not all banks have all of the options that people will need, many banks now offer more services than they have before.

Some banks will allow people to send electronic checks to credit card companies and student loan organizations instead of writing out a check each month. This saves time and paper. Some banks will allow a person to see their account at any time during the day and allow them to make changes that they see fit.

They can transfer money into a savings account, open other accounts, or buy items online. Since many people shop online, they will use their debt card to pay for the items that they purchase. This can make money management even easier. Online banks that do not have traditional branches are also beginning to open on the internet. Without a location to visit, people conduct all of their banking online.

In the future, this may become the trend. Online banking that people will do exclusively on the internet is not out of reach. These days, people can look into investing, opening up other accounts, and taking out loans without leaving their computer. There are many advantages to this form of banking. Money is transferred faster, people can check their balances within minutes, and people will no longer miss bill payments.

There are also disadvantages to operating solely on the internet. Sometimes it is necessary to talk with a banking representative in case there is a problem with the account. Being able to talk to a person face to face will help the situation. Online banking services would require that people speak through email or over the phone. Another problem is that errors concerning the amount of money that a person has in their account. Without a paper trail, the situation could be dire.

Online banking services still have a long way to go, but those who use them now say that it is very convenient and easy to use. People will continue visiting their bank and conducting business by talking with others. While internet banking may be more convenient, most people still feel more comfortable speaking with a person rather than typing an email or talking over the phone.

FinanceTalk

to FinanceTalk