5 Misconceptions Behind Online Banking

Tired of spending countless amounts of minutes in line at the bank to pay your telephone bill?   Why not consider paying your bills online?

onlinebankingMany individuals that are rather comfortable with the traditional ways of banking are missing out on saving time and effort doing routine banking activities based on common misconceptions.   Although these misconceptions have been around for a long time, they should not stop individuals from taking advantage of user-friendly services that will make banking easier in the future.

Here are 5 misconceptions that may cause some individuals to hesitate to use their computers or smartphone for their banking needs.

Online banking is not safe.  My account information can be stolen.

Every federally chartered bank in Canada has specific sections of their website that is secured which permits clients to perform transactions in total privacy.  Once logged onto the secured section, clients can access their own profile and account details.  Each transaction is tracked by the bank and confirmation codes are given to clients for future reference.  It is advised that clients change their password occasionally to ensure that their account is not hacked into.  In the event that your account has been compromised, banks will reimburse you for loss due to a security breach on their end. (Contact your bank to inquire about their respective reimbursement policy.)

Online banking is far too complicated.  I do not have the time.

Online banking is not that complicated.  If you can log on to read your email or check your Facebook account, than you can handle your online banking transactions.   At the beginning, it will take a little time to get acquainted with the layout of the page in terms of knowing where everything is (such as where to make your credit card payments, status of investments, etc.).   Once you are comfortable with navigating the page, all you need to know is clicking in the right places and entering the correct dollar amounts in the corresponding boxes.  As you master online banking, you will find that the exercise is painless and will take seconds to do.

Online banking is expensive.   I do not want to pay extra fees.

Almost all banks in Canada do not charge their clients to log on to access their profiles and perform basic banking transactions such as paying bills.  Some banks will charge a small fee for transferring money to an external account or accessing a cheque that has been processed.  (Inquire at your bank or visit the bank’s website to see the fees that are charged in regards to online services.)

Online banking does not give me complete control of my account and services that I need to use.

Other than printing cash, online banking allows you to manage your funds and take advantage of certain services rather than having you venturing out to your bank.  If you are a disciplined saver, you can modify how much money that gets automatically transferred into another account on a specific date. In addition, you can easily track your spending in a specific period of time and how your investments are performing.

Online banking is replacing a human being.  What if I have questions?

Although online banking is making some individuals less dependent on going into the bank and talking to a bank representative, it does not mean that you cannot speak to a human being when needed.   If you encounter any difficulties with your online banking transactions or questions, most Canadian banks offer a telephone number in which you can have your questions and concerns addressed.

Internet banking offers a variety of advantages to clients.  Not only are clients saving time in terms of not entering their local branch but they are taking control of paying bills and putting away money automatically.  Individuals that have not decided to conduct online banking must realize that their fears are getting in the way of benefiting from the same advantages.

Know of other tips to online banking?  Share them by entering the Monnaie Money Financial Literacy Video Contest or call (514) 342-5678 ext. 228 for more details.

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