5 Biggest Benefits of Online Banking

Online banking gives customers instant access to their financial information and features to transfer funds, pay bills and handle many other banking tasks independently. More than 80% of American Bankers Association survey respondents said they use a smartphone or tablet to bring the convenience of online banking to their mobile devices.¹

Here are a few of the biggest benefits.

1. Convenience

One of the biggest perks of online banking is convenience. Whether you're at home using your computer, sitting in a waiting room or quickly checking your account balance before making an ATM withdrawal, online and mobile banking make it possible.

In the old days, you may have needed to visit a bank branch during business hours to get your current account information or wait for your monthly statement to arrive in the mail. Online banking gives you instant access to the latest information whenever needed.

2. Time and Cost Savings

If you need to conduct a transaction with a bank teller, you have to go to the bank, wait in line, talk with the teller and then get on with your day. That can take a lot of time, plus the cost of transportation.

But you never have to wait in line to deposit a check with your phone or enter an online transfer from your computer. And scheduling recurring transactions or an automatic deposit can save you even more time managing your money.

In addition to time savings, you'll likely find lower costs when handling your banking online. Most online banking activities are fee-free. Even bill paying is typically a no-cost service. For example, you can save on the cost of stamps, envelopes and paper checks when you pay your bills online.

3. Banking Access 24/7

Just as you can use mobile banking anywhere, you can use online and mobile banking any day, any time. While bank branches may have limited hours (and usually close on weekends and holidays), you can tap into the power of online banking 24/7, even when physical bank branches are closed.

You can log in and look at recent transactions to see if a deposit was received or a payment has cleared. With many online banking systems, you can set up alerts for large or suspicious transactions so you know immediately what's happening in your accounts. And if you lose your debit or credit card, you can report it missing and request a replacement with a few clicks or taps.

4. Increased Security

While many worry more about online banking security than offline banking security, those fears may be misplaced. Following online security best practices for online banking is important, including using unique passwords and avoiding unsecured wireless networks. But when you follow cybersecurity guidelines, you're likely just as safe with online banking as with traditional banking methods.²

For example, digital statements can be accessed through your bank's website and downloaded directly to your device. With paper statements, your personal information can be lost in the mail or even stolen from your mailbox. Online banking relies on secure socket language (SSL), an algorithm that encrypts web traffic between the bank and your device. Those who avoid common digital security pitfalls are generally very safe using online banking.²

As mentioned, you can continuously monitor your accounts for unauthorized transactions and keep your eyes on your text messages or banking app notifications to instantly know about suspicious activity.

5. Better Financial Management

Online banking can also be transformative for managing your entire financial life. For example, you can download spreadsheets of financial data or link to a budgeting app to get a better view of your spending. Some banks offer built-in calculators to project your savings over time or understand the costs of a loan. And much of this is available for free.

Personal finance software allows you to access helpful insights and build a forward-looking financial plan. Some top apps help you track and understand your banking, credit cards, investments, loans and financial goals from a single dashboard.

Take Advantage of Online Banking

Online banking is a fast and convenient way to deal with your finances, wherever you find yourself. With features like mobile check deposits, automated recurring transfers and online bill payments, online banking can help you overhaul your financial situation and put your money to work for you.

Synchrony Bank offers an industry-leading online banking experience. In fact, as an online bank, Synchrony puts its digital banking experience at the forefront. Whether you're looking for a top savings account or compelling cash back credit card, you can easily manage your accounts online with Synchrony Bank. Open an account today to find out how easy it is to manage your money with Synchrony Bank's online banking.

 

Eric Rosenberg is a financial writer, speaker and consultant based in Ventura, California. He is an expert in banking, credit cards, investing, cryptocurrency, insurance, real estate, business finance and financial fraud and security. His work has appeared in many online publications, including Time, USA Today, Forbes, Business Insider, NerdWallet, Investopedia and U.S. News & World Report. Connect with him and learn more at EricRosenberg.com.

 

READ MORE: Important Banking Terminology Everyone Should Know

 

Sources/references

1. National Survey: 97% of Consumers Give High Marks to their Bank's Online and Mobile Experience. American Bankers Association. November 3, 2023.

2. Hagen, K. and Tretheway, C. Are Online Banks Safe? The Ascent. November 14, 2023.