are online banks safe

Is Online Banking Safe? How To do Transactions Securely & Safely?

One day you want to withdraw some cash, and you go to the bank and get shocked after seeing lines and lines of people. Besides, you even don’t know where to withdraw money and there is no person to ask. In that dilemma, you stand in one of the lines and after waiting for hours, you’re able to get the money. 

Another situation is that when you want a loan or just want to make a fixed deposit, you have to wait patiently to meet the manager in the traditional bank. Right? Which could be from a few minutes to a few hours!!

Do you know you carry a bank in your pocket? Yes, you read it correctly!! Nowadays, this is the scenario because most people are using online banking. You might have also heard about this thing. It is easy and convenient to use, but some people face some online fraud as well. This is also a common problem that people are facing. 

Now you might be thinking whether it is safe to use it or not? How to do it? Some people might hear this online way of banking for the first time. So, don’t worry, we are here for you. After reading this, decide whether you want the traditional banks or open an online bank account. 

Today we’ll bring all the information about web banking and how to do it properly, and also it’s advantages and disadvantages. So keep reading and don’t miss any line.

What is Online Banking?

Net banking or online banking or web banking is an electronic payment system by which customers of any bank will be able to do many bank functions by going physically to the bank. This can be done from any electronic device such as computers, mobile, and tablets. 

You can do many things, such as transfer and receive money or any other financial transactions within minutes. Quite interesting? 

These days some banks operate in two ways – first is the direct bank or virtual bank, and the second one is net banking. 

are online banks safe

source: investopedia.com

Benefits of Net Banking

1. Convenience

The first and the most significant benefit of using internet banking is the convenience you get! Wherever there is the internet, you can open and operate your bank. Isn’t it convenient? 

So, whether you’re traveling or want to do some transactions urgently, within minutes, you’re able to do anything.

2. High-interest rates and lower fees

Online means no maintenance because banks don’t need to spend money on any kind of branch maintenance. So, they offer high-interest rates on deposits and take lower fees. The more will be the deposited amount, the more interest you’ll get per annum. 

3. Free ATM access

Do you know that with the help of an online bank, you can locate nearby ATM networks nationwide? Yes, this is also an additional benefit for you. 

4. Pay Your Bills – Anytime & Anywhere!!

Suddenly you’ll see a pop up of a due electricity bill on a mobile screen? No worries with a bank in your pocket, you can easily pay any type of bills online. Isn’t it a great thing? 

5. Security

This is a significant factor that we look for when it comes to web banking, right? Yes, online banks come with security features such as encryption, fraud monitoring, and other standard security measures

But there are some things that you should keep in mind before you open an account, that we will tell you later in the blog.  

are online banks safe

source: usnews.com

Why Avoid Online Banking?

No matter how wonderful it is to use internet banking still, there are some things which are bothersome about this. Let’s know one by one about each of them:

1. No Interaction

When it comes to web banking, you might face problems regarding customer services. While online, there is no one to one interaction, you’ll not be able to contact any person when you wish to. Imagine you want to make a fixed deposit but are not able to fill the details. If this happens in a typical bank, you can easily go to the help desk and ask, but on the internet, where are you going to ask, right? So some people might face some issues. 

2. Cash can be Hard to Deposit 

Imagine you want to deposit a considerable amount, then obviously you’ve to either go to the bank or nearest ATM. Right? Some things you’re not able to do online as banks also have some restrictions. 

3. Technology Issues

The Internet is a boon or curse at the same time!! When the net is down, you completely lose access to your account, and if you’re doing any transaction, it’ll hang in the middle, which is sometimes irritating. 

Here’s the overview table of the advantages and disadvantages of having an online bank account: 

PROS

CONS

  • 24/7 account and service access
  • Technology issues
  • Speed and efficiency
  • No one to one interaction
  • Online bill payment
  • Security issues
  • High-interest rates on deposit accounts

If you go for an online bank account, you can do a lot of stuff, but what is the right procedure to do it? Because sometimes we’re careless while performing the transactions, but because of that, we may face some severe problems. 

Also Read: Online Payment Solution: Best Way To Shop Quickly With Hassle Free Process

Is Online Banking Completely Safe to Use?

This is the first question that any person asks when you ask to open an online bank account. So, are online banks safe or not, let’s find out!

First, think about the requirements such as do you need to pay bills frequently? Want to deposit money with a high-interest rate? Are you a shopaholic and purchase items online? 

If these are your requirements, you can definitely go with online banking, but if you’re not aware of new technology or don’t know how to operate a smartphone, then it’s better not to have one. Online banking is safe and getting more safer, so don’t think too much, just figure out your needs and open an online bank account. 

are online banks safe

source: askleo.com

Tips to Conduct Online Banking Securely & Safely

So, after reading up to here, you already cleared with thoughts that you want it or not, right? Actually, having an online bank account is super helpful, but there are little things that you should keep in mind while operating your account or doing any transactions. What are those? Below are all of them: 

  • Whenever you access your account in public, make sure that the screen or passwords are not visible to others. 
  • Always install a good antivirus to protect your computer from viruses and threats. 
  • Under any circumstances never share your bank details such as user ID and banking passwords etc. Also, beware of scammers and their fraud emails who want access to your account. 
  • Change your passwords periodically and always keep updating your bank app on your mobile to get the latest security updates. 
  • Use various lock techniques on your mobiles such as face ID, fingerprint security, and double lock it with a pin password. 
  • Whenever your debit card or credit card is stolen, immediately inform your bank and block your card. 
  • Never click on any link that claims to redirect you to your net banking page. 
  • After you’re done with all the banking things, make sure to log out from the page. As not doing this may leave you susceptible to fraud if someone else also uses your device. 

All in All

Keep all the above tips in mind and follow all the security procedures and enjoy the online banking services with worry, and still, if you’re confused, is online banking safe or not? Contact the nearest branch of your bank.

If you want any more information like how to open an online bank account? How to handle it? Then you can go to the nearest branch of your bank and get all the required information. They’ll surely help you out and give the up to date information. 

For more finance-related information, you can always come to our website Financeshed