Online Banking
I haven’t walked into a bank in over 10 years. I do everything either online or thru the mail. Checks get deposited thru the mail, bills get paid online, and I monitor all account activity online. I was doing this long before we went RVing, but it’s essential for the RV lifestyle. No need to hunt for a local branch of your bank, just set up a username and password on your bank’s website. No need to wait for the paper bill from your cell phone company, just access their website and pay with your credit card online.
What about identity theft?
Many people will tell you that, because of identity theft, they would never do their banking online. I’ll tell you that, because of identity theft, your best strategy is to do your banking online. Identity theft happens in many ways, but rarely is it because of your online activity. More often, it’s because some other computer has your credit card information on it and that computer gets hacked. For example, if you use your credit card at a grocery store and that store’s computer gets hacked, your card number has been stolen.
Your best defense against fraudulent use of your credit card is to regularly monitor the activity in your account. How do you do that? Online! Don’t wait for your paper statement to come in the mail. That only comes once a month. And, if you use a mail forwarding service it may take another week or two to reach you. If you view your bank account activity online, you can check once a week, or even more. Early detection is your best protection.
So, what exactly do I mean by ‘online banking?’
1. Monitor your bank account activity:
The first, and most essential part of online banking is simply having Internet access to your account information. Most every financial institution will have a website. Examples include: Bank of America, Wachovia, Wells Fargo, Merrill Lynch and Paine Webber/UBS. Each of these websites include a place for you to enter a username and password. Call your bank if you don’t already have a username and password. They will help you get set up. Once you log in, you will be able to see all of your account balances and up-to-the-minute details on every transaction. If you log in regularly and just look, you will see any suspicious activity right away and be able to take action.
The website itself handles the security regardless of how you are connected to the Internet. Even on a wireless connection (Wi-Fi), your activity on your bank’s website is completely secure because it is encrypted. Even if someone on the same wireless networked ’sniffed’ the airways and grabbed your transmission – all they would see is gibberish. On each of the websites above you will find detailed information about how they handle security.
2. No need for a paper statement
If you monitor your banking activity online, you can use that information to keep your checkbook balanced. Most banks also provide you with an online copy of the paper statement. My online statement includes the ability to click on any check and see the scanned check itself, including the back!
3. Transferring money between accounts
If you have a checking account and a savings account at your bank, you can use the website to transfer money from one to the other. I use this feature to ‘borrow’ money from my credit card account by transferring from the credit card account to my checking. Then, after depositing some money in checking, I go back online and pay off the credit card by transferring from checking to credit account.
4. Paying Bills
Many banks offer the service to pay your bills. You set this up once, entering the name of the payee, the amount, the address, and the date to be paid. Then, the bank makes out a check and does the mailing for you. There is usually a fee for this service. Personally, I prefer to go direct to the payee’s website, e.g. Verizon, and pay my bills there. But, if you have some payees that don’t have their own website with ability to pay them, the bank’s service is a good way to go.
Once you get accustomed to online banking, you’ll wonder how you ever lived without it! It makes other things so easy. In a previous article, I told you how I used TurboTax online to prepare my tax return. When it wanted the details of my 1099-DIV forms, I didn’t have to enter a thing. I simply provided a link to my account at my financial institution and all the details got filled in for me. My tax return was filed on March 27, and the refund money appeared in my account one week later. I knew it because I logged in and looked!
Chris Guld
www.GeeksOnTour.com
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Agree! I too have been managing my accounts this way and find it so much better than trying to keep track manually! My credit union just started a site so I can access all my banking through my Blackberry — don’t even have to crank up the laptop to send bills, transfer $s, check balances, etc. How cool is that?
I have been concerned about using the WI-FI connections at the RV Resorts we have stayed at on our recent 3 month adventure. If I understood you I should not be concerned about the un-secured networks that they provide. I have all my bills setup on-line and have used it at home for sometime. Please say again if it is not a problem with these networks. I want to go to some companies direct and many through my bank bill pay software.
Thanks for your help
Rich Henry
The encryption used by financial institutions has never been compromised.
You need to be careful regardless of how you connect.
Snooping is more likely someone looking over your shoulder watching what you are typing, than someone sniffing the wifi data packets.
I fully agree on using the service. Been using on line banking for years, and it is a great way to do all your banking when your away from home . In fact we use it even while were home. I was concerned about using WI-FI also but this helped clear things up for me.
Thanks Tom
Good stuff, Chris!
As you know I live in a “big truck”, but the same principals apply to me. I have two accounts that I monitor online from the cab of my truck via wifi from truck stops. Just to add to Jim’s caution………I DO NOT use my computer inside the truckstop like I see so many drivers doing. I see many often will walk off from their computers for a few minutes! Some people just are plain silly. I agree that if your computer is protected with basic programs AND some common sense; monitoring one’s bank accounts can be easier online than with “snail mail”……..AND can be done on a DAILY BASIS-that’s KEY!
Brother Tom
Richard,
Sorry for my delay in answering, and thanks Jim (my husband) for answering for me! I was at a hotel with $15/day Wi-Fi!! Thus, I was ‘unplugged’ for a few days.
Yes! I *am* saying that it is safe to use online banking on any kind of connection – even Wi-Fi – because the security is handled by the website itself. See your bank’s website for more details.
Regardless of how you are connected, when you click on ‘Login’ (or whatever the button is called on your bank’s website) the website takes over and encrypts whatever you type. It keeps it encrypted from your computer, thru the local (wireless) network, across the wide area Internet, into the bank’s computer … AND back. Encryption means turning your typing into a code … ’scrambling’ it, if you will.
How do you know you’re on a secure website? By the HTTPS in the address. An unsecure site won’t have the S. You should also see a symbol of a padlock that is closed.
There is no such thing as being 100% safe except by unplugging your computer! But, I believe that online transactions (on secure websites) are safer than face to face or mail. Maybe this will be my topic next week?
Assuming either the Left Wing or the Right Wing gained control of the country, it would probably fly around in circles.
Listen. Do not have an opinion while you listen because frankly, your opinion doesn?t hold much water outside of Your Universe. Just listen. Listen until their brain has been twisted like a dripping towel and what they have to say is all over the floor.
Just wanted to warn. Do not pay for bill pay from any bank. I am a full timer and have my money split in different banks and none charge for bill pay. Suntrust, Nat City, Us bank, Cap one, and my credit union. So go to a free safe on line bank. Its marvelous.
For those of you that are active duty or retired military, USAA Federal Savings Bank in San Antonio has several programs that are full-timer friendly. For example, pay bills, pay your insurance bills, monitor & pay credit cards, loans and if you have a scanner in your rig, you can deposit your checks over the net, all at no charge. I have been with USAA since 1962 and have never been into their bank. They also provide credit report monitoring for a nominal fee and all of your accounts are safe, insured and virtually hack-proof, requiring login ID, password and pin.
For further information on eligibility, visit https://www.usaa.com/ or search USAA.
Some can already, and most soon, will be able to scan checks you receive on your pirnter/scanner and deposit them online, without the need for snail mail or a trip to an atm. Some banks/credit unions will instantly credit your account, and you never send in the original paper check!
See if you can gain control of the information that the bill payer program sends out to the payee. Many simply send your banking information, including address and phone, without advising you or giving you any control over this information. I, for one, only include information that is really necessary, like account number, and never include a phone number, which can lead to telemarketing.
Hi, Everyone,
I agree with the convenience and security of using online banking and bill pay. I work for a bank and am the online banking specialist. I found this great thread by searching for “online banking” and wanted to put in my 2 cents. The security of online banking and bill pay is VERY good and, as someone noted earlier, safer than sending a check (containing ALL the necessary account information) through the mail to be handled by dozens of people and then left to sit in an unattended mailbox somewhere. Now that’s a theft waiting to happen! One point I’d like to make regarding paying your bills online: when faced with the choice of whether to go to your biller’s website to pay or go to your bank’s website to pay, chose your bank. If you go to your biller’s website and authorize them to “pull” the money from your account, regardless of timing preferences they offer you, you really have no control over when they pull, how often they pull and how much they pull. Instead, use your bank’s online banking where you have control and are able to “push” the funds out to your billers. You will be able to set your payments and cancel your payment yourself. Believe me, having to place stop payments on erroneous ACHs coming in from your biller is just as expensive as stopping payment on a check and even more so, as you will have to place that stop payment EVERY MONTH if your biller does not correct the problem promptly.
I love online banking and bill pay not just because I work with it, but because it makes my personal life MUCH easier. I can check my balances and discover errors any time of day or night. I pay bills without having to look for an envelope, pay for expensive stamps or write or reorder checks. And in most cases, it gets there faster than a check through the mail. What’s not to love?!?!
Laura Wolf
lwolf@mainlinebank.net
I also have been doing on-line banking for years through my credit union, but found something even better. When we decided to hit the road for six months I determined that I needed a second credit card and bank in case of any problems with my primary. I applied through USAA Bank and found that they have a program called “Home Deposit” where I just have to scan my checks via my laptop directly to my account. where they are instantly credited. I don’t know of any other bank doing this, but it sure is a time-saver.
You’re right about checking online often. I picked up an unidentifiable check in my online statement the day it appeared. On checking with the bank, I discovered someone had gotten 500 checks from one of the Shredder companies the bank used. I had returned them because they had the wrong address printed on them. Upshot: the police on the other Florida coast caught three people passing them. Talk about stupid crook! She was tripped up when she paid her FPLight bill with one…account number, name and address et al!
Tell us more about that “Home Deposit.” My biggest problem is depositing checks when there is no bank in the area. (I use Fidelity’s MySmartCash – great for everythng except deposits.) Any ideas are welcome!
And for all-around connectivity, I use Verizon Air Card…hasn’t failed me yet…anywhere. It may be slow in areas with low access, but I’ve always made it online. (and I don’t own stock in the company)
Gail Hunter
http://www.gypsyfeet.net
Very good post. It’s also a really good idea to use the FireFox web browser rather than Internet Explorer. It’s free, fast, and much more secure. While using the internet on public networks you might want to use a VPN (virtual private network). You can get software for free on the internet to help you accomplish this added level of security.