Thanks to modern technology, Internet access is almost everywhere. This means that it is possible for you to access your bank accounts from anywhere there is a connection if you choose to do so. However, all of the options around online banking also give rise to a number of questions. Here are the top three questions and answers about online banking, to help you make better decisions about your available options and choose the online banking applications that work best with your life.
Is it safe?
There is now doubt that the question of whether or not online banking is safe is the top question about the service. Thanks to identity theft on the news, hackers on the Internet, and the quirks of secure networks, safety is a top concern for consumers. Even though online access to your bank account sounds great from a convenience stand point, no one wants to jeopardize their financial security.
Fortunately, financial institutions of all stripes share your concern about account security, especially online. The push for more online banking applications has also been accompanied by a push for more intensive security solutions for account access paths. Some of these security features are obvious, while others are more subtle.
Obvious security features include the requirement for a unique user name, passwords that contain a mixture of symbols, photo matching, and security questions. You are probably familiar with having to modify online handles to include capital letters, symbols, or numbers to meet security criteria. Each layer of information applied is a visible layer of security on the account.
Less visible means of security include IP tracking, transaction keys, and encrypted signatures. IP tracking helps financial institutions monitor where you are logging into the account, and can prompt additional security questions if you are logging in from an unfamiliar locations or security alerts if foreign IP address are trying to access your account. Transaction keys, known as TANs, are one-time use codes that grant permission for a transaction based on a secured login. Finally, encrypted signatures are tied to user keys and phone smart cards, adding additional barriers.
How can I get human help?
The next question for many online banking users is how to access human help. Technology isn’t always perfect, and online errors can be particularly frustrating. This is compounded if the system goes down while you are trying to resolve the issue on your own.
For most online banking applications, there is a clear statement of contact options. Phone contacts are the most common, with calls returned during banking hours. Some larger financial institutions also maintain a 24 hour hotline that links to a remote help desk to rectify errors.
A more recent development that is proving popular with end users is real time chat applications. For real time chat, you have a chat box on the screen where you can type questions and get immediate responses. Sometimes these responses are telephone calls to a designated number, and in other cases you may have a chat conversation with a remote helpdesk to resolve your issue.
Why doesn’t my online banking do . . . ?
Online banking can do a lot of things, and each financial institution is in a different place in terms of what they’ve implemented for their customers. Still, there is nothing more frustrating than thinking you can take care of something online and then discovering that your online banking application doesn’t do that.
To get more features for your online banking accounts, it is important to let your financial institution know that you are interested in that service. Most of the new features being added to online banking applications are customer demand driven.
One example of this is remote bill pay abilities. The concept of paying third party bills online was initially offered only to business customers. Now, thanks to strong demand from individual users, it is a popular feature of many online banking applications. Thus, if you are wondering why your online banking program doesn’t do something that you like, you have it in your power to see that the situation changes by taking the time to contact your financial institution and let them know that you want that service.
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Checking accounts may be America’s most common transactional account, but they are also a classic case of a frequently used item that is imperfectly understood. You have probably had a number of checking account related questions over time, and you are not alone. Below you will find the top three questions about checking accounts and their answers for your reference.
Why can’t I access my deposits?
Checking accounts are designed to have money flowing in and out of them at the account holder’s will. This is why they are also known as demand deposit accounts. You make a deposit, you can demand that spending ability . . . or can you?
A unique feature of checking accounts are holds. Holds on checking accounts mean that even though a deposit has been made, the funds aren’t available for spending until a later date. The rules around holds can vary from bank to bank and between credit unions and banks, but at their core they are governed by Regulation CC, the Expedited Funds Availability Act.
The point of Reg CC, as it is called in the business, is not actually to be a monumental pain in the rear. The regulation was created to protect banks and consumers against check fraud. Unfortunately, the environment in which it was created was a time when paper checks were a predominant feature of consumer spending, unlike the plastic dominated and instant transfer culture that exists now.
Although regulations are in the works to change Reg CC, consumers at the moment have a bit of a conundrum. Thanks to another regulation known as Check 21, electronic version of checks are as good as paper checks, meaning that outgoing funds can be processed immediately, debiting the account on the spot. Incoming funds, on the other hand, still are subject to the hold rules, meaning that consumers have to wait for the full processing of the transaction before they can access their funds.
To manage around the applicable holds and prevent unnecessary insufficient funds charges or bounced checks, here are the basic rules on holds:
- Reg CC does not apply to checking accounts that are less than 30 days old. During this time, accounts are on high fraud watch by the bank and additional holds may be applied, which should be explained to you by the person who helps you open the account.
- Electronic direct deposited funds have to be made available the same day, as do the first $100 of other deposits.
- Funds have to be available after two business days for local checks and the first $4,900 of large deposits
- Funds have to be available after five business days for non-local checks
There are additional exception holds on the market, generally put in place on extremely large deposits and suspected fraudulent checks, but these will usually be explained at the time of deposit by the teller.
What are all these fees?
Although free checking accounts are advertised all over the banking world, most checking account holders are well acquainted with fees. Checking account fees can include transaction based fees, cash access fees for using non-network ATMs, overdraft fees, and monthly service fees.
It really does pay to take the initial fine print forms that come with an account and get to know them well. These will explain exactly which activities trigger fees, so that they can be better avoided. With all the choices available on the market, it doesn’t make sense to pay fees for basic checking, so read carefully and shop around to get the best no-fee accounts.
What special benefits am I missing?
Modern checking accounts often have special account holder benefits associated with them. These can include purchase protection, travel insurance, life insurance, membership discounts at participating merchants, and the opportunities to earn points for rewards. These programs can change rapidly, so it pays to refresh yourself annually on the benefits associated with your account.
The most common new benefit is a points/rewards program for certain types of spending. As participating merchants will change more than the underlying program, bookmarking benefits explanation page for the program (most are online) will ensure that you don’t miss any of the associated benefits of your checking account.
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Savings accounts are held by more than 65% of Americans. As one of the most popular kinds of banking products on the market, these accounts are designed to provide consumers with a safe place to store their excess funds. Despite their prevalence, savings accounts still draw large numbers of questions from account holders. This article will look at the three most common questions about savings accounts and explore the answers to those questions.
Where’s the interest on this account?
A core feature of savings accounts is that they earn interest. Part of the motivation for saving with a bank instead of stuffing the money into a mattress or burying it in the backyard is this interest. However, in recent years, many savers have been looking at their accounts and wondering where their interest has gone.
It has not disappeared completely. According to the regulations that govern types of deposit accounts, savings accounts still earn a rate of return. The difference between the present and the past lies in the interest rate on the account.
In 2009, interest rates on basic savings accounts were less than one percent. In some cases, accounts earned between .025 % and .01%. The net effect to a savers eyes was a disappearance of their interest, since the return on their savings could now be counted in pennies.
This represents a sharp change from even ten years ago, when basic savings accounts commanded interest rates of 5% or more. The difference, of course, is the economy. Over and above the economy, however, has been the governmental response to the economic situation.
Government bodies, like the Federal Reserve, have dramatically lowered interest rates to keep capital moving in the marketplace. This has a negative impact on savers, which is intentional as the government wants consumers to be out there spending and reviving the economy instead of saving. This policy, known as monetary easing, is designed to keep dramatic hardships from taking place across the market.
Fortunately, just like the economy, interest levels are cyclical. While savings account holders may be wondering where their interest has gone in the present market environment, the next swing of the economic cycle is likely to bring a return of higher interest rates for savings accounts.
What are these fees?
Most consumers associate savings accounts with interest, not fees. However, the fine print of most savings accounts typically details fees that are associated with the account. These fees typically fall into the following main types:
- Account maintenance fees. These fees are assessed on a monthly or annual basis to offset the bank’s costs of hosting the account for you. In many cases these fees are waved if the account balance is above a certain point.
- Service charges. Service charges are incurred as a result of an action on the part of the account owner. For example, a savings account may come with three free withdrawals per month. Additional withdrawals are permitted only with a service charge of $2.
- Penalties. Penalties occur when you do something in violation of the account policies. This may include letting your balance drop below a certain level, making excessive withdrawals, or overdrawing the account.
Many, if not all, savings account fees can be avoided by shopping around between financial institutions and reading account covenants carefully.
How can I get more from my savings efforts?
Faced with low interest rates and dearth of positive returns in the stock markets, many consumers are asking how they can get better returns out of their savings efforts. Instead of parking their dollars to collect pennies, they want to get higher rates of interest or better benefits from their savings accounts. Several options have sprung up in response to this demand from consumers:
- Matching programs. Save a certain amount, or save in a specific way, and banks will match funds, increasing overall account yields.
- Bonus programs. Complete a certain number of account related activities, and banks will pay bonus deposits.
- Online programs. Online savings accounts cost banks less to offer consumers, allowing these savings accounts to offer higher interest rates to consumers willing to adopt a non-traditional banking model.
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