There are advantages disadvantages for internet banking, and it really depends on how you bank and the level of “state of the art” of the bank you deal with. Let me explain:

• Online banking can show you up to the minute information on your accounts, depending on the bank. But some vendors don’t report right away and you still don’t have an accurate balance online. Lots of banks like Commerce Bank of New York and New Jersey, for example, have a “pending” area of transactions that have come out of your account but are not posted yet. Just make sure you know that posted and pending are not the same. But generally, pending will be posted. It’s just banking convention.
• if you start to use online bill pay, you may discover to your chagrin that some banks will cut a check to pay your bill, and take the money out so the check they write does not bounce(!) but others just cut the check, and you can ironically bounce THEIR checks!! I know, it makes no sense. And then they charge you an overdraft.
• You can transfer easily between accounts, and keep a pretty accurate record.

Since the advent of internet banking, it’s now possible to go online and see exactly what is going on with your account and how much money you have at any given moment. This has saved me lots of times, when I forgot to write a cash withdrawal down in my check register! Internet banking has allowed me to transfer funds electronically in a matter of an instant, saving me from huge overdraft fees and return check charges. You can pay bills online, transfer payments to credit cards, make online purchases, and complete other financial transactions as well. What would we do without internet banking? I can’t imagine going back to the old way of calling the automated system over the telephone and waiting as the recorded voice read off my cleared checks and deposits! It seems so archaic!

Most all banks offer internet access to accounts as a convenience service to their customers, and it is relatively easy to set up. You just need to go to your bank’s website and set up a username or ID (usually your account number) and password and you’re on your way. You can even transfer this data to your computer based bookkeeping system such as Quickbooks or Quicken, to easily track your income and expenditures throughout the year. This is especially handy at tax time! Internet banking also allows you to apply for various types of loans and have the money placed directly into your account in a relatively short period of time. You can also make investments in certificate of deposit accounts as well as other financial transactions. Just make sure that you are banking with an FDIC insured financial institution to provide you peace of mind that you are doing business with a legitimate bank that can protect your deposits and investments. You work hard for money so don’t leave anything to chance.

So I always look for a bank that writes bank checks when they pay your bills, and the rest should fall into place. Generally they don’t charge fees if you do some form of direct deposit. All banks have different posting rules. So ask them before you open the account.