10 Ways Online Banking Can Help You Save Money

Online banking or digital banking is an incredibly convenient way to manage your finances.

It can help you save time, and money, and even make budgeting easier.

In this blog post, we’ll discuss what online banking is, some of the benefits it offers, and 10 ways you can use it to save money.

What is Online Banking?

Online banking is a service that allows you to access your bank accounts, view balances, transfer money, and pay bills electronically.

You can access your accounts and perform transactions using a computer, tablet, or smartphone.

You can also set up alerts, view statements, and deposit checks.

When you use online banking and have an online bank account, you don’t have to worry about waiting in line at the bank or dealing with paper checks.

You can manage your finances from the comfort of your own home.

Benefits of Online Banking

Online banks provide offers several benefits compared to traditional banks such as brick and mortar bank.

For one, it allows you to save time.

You no longer have to run to the bank to make cash deposits or pay a bill.

You can do it all from your computer, tablet, or phone.

It also offers convenience.

You can access your accounts anytime, anywhere, as long as you have an internet connection.

You can also keep track of your finances in real time.

Another benefit is that online banking is more secure than traditional banking.

Your financial information is encrypted and stored on a secure server.

This means it’s much less likely to be stolen or hacked.

How to Use Online Banking to Save Money

Online banking can help you save money in several ways.

You can use it to pay bills automatically, monitor your spending, and even take advantage of online-only offers.

Here are 10 ways you can use online banking to save money.

1. Pay bills automatically

One of the easiest ways to save money is to set up automatic payments for your bills.

This way, your bills will be paid on time every month without you having to worry about it.

Setting up automatic payments also helps you avoid late fees, which can add up quickly.

2. Monitor your spending

It’s easy to lose track of where your money is going when you’re not keeping an eye on it.

With online banking, you can monitor your spending and make sure you’re not overspending.

You can also set up budgeting tools to help you keep track of your money.

3. Set up alerts

Another way to save money is to set up alerts for when your account balance dips below a certain amount.

This way, you can transfer money into your account before it gets too low.

You can also set up alerts for when you’ve reached your spending limit or when your account balance is too high.

4. Transfer money between accounts

If you have multiple online bank accounts, you can easily transfer money between them using online banking.

This can help you save money by avoiding overdraft fees or other fees associated with transferring money.

5. Use mobile banking apps

If you have a smartphone or tablet, you can take advantage of online banking using the bank's mobile app.

These mobile apps allow you to check your account balances, transfer money, and pay bills on the go.

Plus, many of them have additional features such as budgeting tools and spending trackers to help you save money.

6. Take advantage of online-only offers

Many online banks offer special deals and discounts for their customers.

For example, some banks offer cashback rewards when you use their debit card or make certain purchases.

Taking advantage of these offers can help you save money.

7. Simplify budgeting

Budgeting can be a tedious process, but online banking makes it easier.

You can use budgeting tools to track your spending and make sure you’re staying within your budget.

Plus, you can set up automatic transfers to make sure you have enough money for your bills each month.

8. Get alerts for fraudulent activity

If someone tries to access your account without your permission, online banking can alert you.

This can help you catch fraudsters before they do any real damage.

9. Avoid ATM fees

Using online banking can help you avoid ATM fees or visiting your bank branch.

Instead of withdrawing cash from an ATM, you can transfer money directly from your account to your debit card.

This way, you can save money on fees.

10. Save on check-ordering fees

Instead of ordering checks from the bank, you can print them at home using online banking.

This can help you save money on check-ordering fees.

Best Online Banking Platforms

When it comes to online banking, there are several platforms to choose from.

Some of the best options include banks like Ally, and Capital One, as well as digital banks like Chime and Aspiration.

More information on our recommendations for online banking platforms is discussed below.

1. Ally Bank

Ally Bank is a popular online-only bank that offers a range of financial products, including checking and savings accounts, credit cards, and loans.

2. Capital One 360

Capital One 360 is an online-only bank that offers checking, savings, and money market accounts, as well as credit cards and loans.

3. Chime

Chime is a mobile app that offers a checking account with no fees and a savings account with a high-interest rate.

4. Aspiration

Aspiration is a financial technology company that offers a range of banking and investment products, including a checking account and a debit card with no fees.

5. Discover Bank

Discover Bank is an online-only bank that offers a range of financial products, including checking and savings accounts, money market accounts, and certificates of deposit.

6. SoFi

SoFi is a financial technology company that offers a range of financial products, including checking and savings accounts, credit cards, and loans.

7. Acorns

Acorns is a financial technology company that offers a range of investment products, including a checking account and a debit card with cashback rewards.

Things to Consider When Evaluating Online Banking Platforms

Fees

Some online banking platforms charge fees for certain banking services, such as overdraft protection or account maintenance.

Make sure to compare the fees associated with different platforms to find one that fits your needs and budget.

Features

Different mobile and online banking platforms offer different features, such as the ability to pay bills online, track your spending, or set up automatic savings plans.

Consider which features are most important to you and choose a platform that offers them.

Security

Security is a top concern when it comes to online banking.

Look for a platform that has strong security measures in place, such as two-factor authentication and encryption of your personal data.

Customer service

If you have questions or need help with your account, it's important to have access to customer service.

Consider the availability and responsiveness of customer service when evaluating online banking platforms.

Tips for Making the Most of Online Banking

To get the most out of your online banking experience, there are a few tips you should follow.

First, make sure you’re using a secure internet connection.

This will help protect your financial information from hackers.

Second, set up alerts for when your account balance dips below a certain amount.

This will help you avoid overdraft fees.

Third, take advantage of online-only offers.

Many banks offer discounts and cashback rewards for their customers, so make sure to take advantage of them.

Finally, make sure to monitor your spending.

Online banking makes it easier to keep track of your money, so make sure you’re staying within your budget.

Frequently Asked Questions about Online Banking

Q: Are online banks safe?

A: Yes, online banking is safe. Your financial information is encrypted and stored in a secure server, so it’s much less likely to be stolen or hacked.

Q: What are the benefits of online banking?

A: Online banking offers several benefits, including convenience, time savings, and increased security. You can also take advantage of online-only offers and budgeting tools.

Q: How can I use online banking to save money?

A: You can use online banking to save money in several ways, such as paying bills automatically, monitoring your spending, setting up alerts, and taking advantage of online-only offers.

Conclusion

Online banking is an incredibly convenient way to manage your finances.

It can help you save time, and money, and even make budgeting easier.

In this blog post, we discussed what online banking is, some of the benefits it offers, and 10 ways you can use it to save money.

We also discussed the best online banking platforms and some tips for making the most of online banking.

If you’re looking for an easy way to manage your finances and save money, online banking is a great option.

For more personal finance money-saving tips and hacks, check out our Spend Less and Save Money page.