5 Advantages of Online Banking

Written by Banks Editorial Team
5 min. read
Written by Banks Editorial Team
5 min. read

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Online banking is revolutionizing the banking industry. Some of the advantages of online banking are giving consumers more choices, and flexibility with their money management. Consumers have become more comfortable with buying goods and services online. Brand experiences take place on social networks and websites, not just in brick-and-mortar stores. 

As more people wanted online experiences and became comfortable with e-commerce, the banking industry adapted. Most banks have mobile applications where users can access their funds and other features. However, new banks have emerged that don’t rely on bank branches to serve customers and provide quality features. Current (*) is one of the mobile banking apps leading the charge with a 4.00% Annual Percentage Yield (APY) on savings (1) and other perks you won’t find at traditional banks. We’ll share the details about online banking and how this trend can power up your finances.

Mobile Banking Done Better

1992 Reviews
Learn how the Current mobile banking app makes it easy to manage your money and tap into all the perks the platform has to offer.
1992 Reviews
Discover Current Spend Account and read about how to open one, what benefits can give and how to manage your bank account online from the app.

What is Online Banking?

Before the internet, you had to visit or call the bank to make any request or fulfill a transaction. You had to show up in person to take out funds for a purchase, pay off a credit card, or perform other financial activities. Showing up in person for basic transactions seems strange today because of online banking.

Online banking platforms let us do these transactions from any device. They simplify a consumer’s financial experience. Some banks provide the minimum while others exceed expectations with their features designed to improve your financial health.

Online Banking vs. Traditional Banking

Traditional banking makes it more difficult to conduct basic transactions. You have to call or visit a local branch to get anything done. You have no way to withdraw money for purchases if you aren’t near a local branch. Although you could use your credit card, you can’t immediately pay off credit card debt. You would have to reach out to someone and write a check to the credit card company. 

Online banking lets you perform these transactions with ease. You can check your bank accounts and credit card balance anytime you desire. Traditional banks don’t stay open 24/7, giving you a limited window to obtain funds, make payments, and get your questions answered.

Is Online Banking Right for You?

The internet has increased convenience and provided us with more choices. Online banking does the same and makes life less stressful. If necessary, you could pay bills from your hotel room during vacation. You don’t have to drive to a local branch or call your credit card company. 

Online banking gives you easy access to your credit score and financial products, such as loans and lines of credit. Online banking apps are safe ways to view your finances and make transactions. You can do online banking anywhere in a few minutes without dialing your local branch’s phone number. All you need is an internet connection to get started.

5 Advantages Of Online Banking

Online banking provides consumers with many advantages. We’ll highlight the five advantages of online banking you’ll come across the most frequently. You may already capitalize on some of these perks, but you don’t want to miss out on any of them.

1. Convenience And Control of Your Account

Convenience and control reduce stress and uncertainty in your life. Having your account information accessible on a mobile app means fewer trips to the bank. Online banks give you more time to spend with loved ones, work on a side hustle, or pursue a hobby. 

Some business owners receive checks from their customers. Under the traditional banking model, you would have to drive to the bank to get the check deposit in your checking account. However, online banking platforms such as Current (*) let you take a picture of the check with your mobile phone. After taking the picture, the funds will show up in your account once reviewed, and ready for use. You’ll save time and money on gas with this approach.

It’s easy to take the internet for granted since we’ve had it for decades. However, it continues to simplify many parts of our lives. Financial institutions with online setups also give you more control over your account. You can use several safety features to restrict access to funds so malicious thieves don’t blow through your savings. Apps also come with passwords and two-step authentication to help protect personal information and give you more control over your account. If you use Current (*) , they offer a number of security features, including instant spending notifications that give you visibility every time your card is swiped.

Mobile Banking Done Better

1992 Reviews
Learn how the Current mobile banking app makes it easy to manage your money and tap into all the perks the platform has to offer.
1992 Reviews
Discover Current Spend Account and read about how to open one, what benefits can give and how to manage your bank account online from the app.

2. Easier Bills Payment

Bills will never go away, but late payments make them worse. Credit card debt comes with higher interest rates than average, and missing utility payments can result in losing power. A more accessible bills payment system reduces the chance of making a late payment or falling behind.

You can pay down credit card debt and other bills through a mobile device. Consumers can visit their bank’s website, log into their account, and check their balances. Online banking makes it simple to pay bills ahead of time to create a buffer.  

3. Simple Fund Transfer

Transferring funds gets complicated if you don’t use internet banking. You’ll either have to visit a local branch or call your bank. Simple fund transfers can protect you from overdraft fees. It’s common for people to eat at restaurants. 

Let’s say you get a restaurant bill for $250 and want to use your debit card. After handing them your debit card, you remember your checking account only has $200. You don’t have enough time to call or visit a local bank. Let’s assume that you also have $100 sitting in your savings account. Instead of getting your payment declined and incurring a late fee, you should quickly transfer $50 of your savings into the checking account tied to your debit card. Online banking apps on your phone let you do this within minutes. After initiating the transfer, the funds automatically move from your savings to your checking account. Another alternative to avoiding overdraft fees is using your Current debit card (*) , which offers up to $200 in overdraft protection if you find yourself paying more than what is in your account. (2)

You may not be down to the wire with a debit card payment, but simple fund transfers come with other perks. Some banking apps, such as Current (*) , make it easy to create several budgets. You can allocate funds for the following categories:

  • Living expenses
  • Vacation
  • Taxes
  • Investments
  • Entertainment

You can get creative with your categories, but simple fund transfers become vital. You can take a percentage of each paycheck and distribute it across your accounts. Under the traditional banking model, you would have to visit a financial institution’s local branch or make a call each time you wanted to distribute your funds across accounts. The online banking model simplifies this process and only takes a few minutes.

4. Better Rates, Lower Fees

Don’t like getting higher interest rates on your loans or fees? Mobile banking apps don’t rely on local branches, which means less overhead. These companies pass their savings onto consumers. It’s why companies like Current (*) can provide overdraft protection for up to $200. 

Traditional financial institutions offering digital apps can’t provide these same benefits. They still have local branches to manage. Those commercial properties come with mortgage payments, utilities, and other expenses. Traditional institutions pass those costs to consumers through hidden fees and higher interest rates. Online banking companies like Current (*) don’t have to raise prices on consumers to break even.

5. Tons Of Features

Online banking apps aren’t only for checking your account balances and paying bills. Some apps provide features that can strengthen your finances. Current (*) provides insights on your spending and helps you track each purchase. These insights can reduce your monthly expenses and move you closer to your savings goals. You’ll get the basic features from any app, but some online banks go above and beyond with their financial services. Current (*) also offers perks to using your debit cards such as points for cash back rewards from eligible purchases, fee-free ATM access at over 40,000 Allpoint ATMs in the US, and contactless cash deposits at over 60,000 participating stores including CVS. (3)

Where Can You Bank Online?

Many financial institutions let you bank online. However, some of these institutions rely on their brand’s past successes to attract new account holders. Modernized online banking companies offer more advantages of online banking with them, which lower your costs and strengthen your personal finances. Current (*) is leading the charge for people who want a better banking experience. Current (*) provides insights to improve your finances, 4.00% APY on savings, overdraft protection, and other features. If you want a superior banking experience, open an account with Current today.

Current

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Current is a financial technology company, not a bank. Banking services provided by and Visa® Debit Card issued by Choice Financial Group, Member FDIC, pursuant to a license from Visa U.S.A. Inc and can be used everywhere Visa debit cards are accepted.

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The Annual Percentage Yield ("APY") for Current Interest is variable and may change at any time. The disclosed APY is effective as of January 1, 2022. No minimum balance is required. Must have $0.01 in savings pods to earn Current Interest on up to $2000 in deposits per Savings Pod up to $6000 total.  Please refer to Current Interest Terms and Conditions.

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Current is a financial technology company, not a bank. Banking services provided by and Visa® Debit Card issued by Choice Financial Group, Member FDIC, pursuant to a license from Visa U.S.A. Inc and can be used everywhere Visa debit cards are accepted.

×

Current is a financial technology company, not a bank. Banking services provided by and Visa® Debit Card issued by Choice Financial Group, Member FDIC, pursuant to a license from Visa U.S.A. Inc and can be used everywhere Visa debit cards are accepted.

×

Current is a financial technology company, not a bank. Banking services provided by and Visa® Debit Card issued by Choice Financial Group, Member FDIC, pursuant to a license from Visa U.S.A. Inc and can be used everywhere Visa debit cards are accepted.

×

Please refer to Overdrive™ Features Terms and Conditions. Current Premium Accounts only.

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Current is a financial technology company, not a bank. Banking services provided by and Visa® Debit Card issued by Choice Financial Group, Member FDIC, pursuant to a license from Visa U.S.A. Inc and can be used everywhere Visa debit cards are accepted.

×

Current is a financial technology company, not a bank. Banking services provided by and Visa® Debit Card issued by Choice Financial Group, Member FDIC, pursuant to a license from Visa U.S.A. Inc and can be used everywhere Visa debit cards are accepted.

×

Current is a financial technology company, not a bank. Banking services provided by and Visa® Debit Card issued by Choice Financial Group, Member FDIC, pursuant to a license from Visa U.S.A. Inc and can be used everywhere Visa debit cards are accepted.

×

Current is a financial technology company, not a bank. Banking services provided by and Visa® Debit Card issued by Choice Financial Group, Member FDIC, pursuant to a license from Visa U.S.A. Inc and can be used everywhere Visa debit cards are accepted.

×

Current is a financial technology company, not a bank. Banking services provided by and Visa® Debit Card issued by Choice Financial Group, Member FDIC, pursuant to a license from Visa U.S.A. Inc and can be used everywhere Visa debit cards are accepted.

×

Out of network cash withdrawal fees apply. Third-party, adding cash and Current membership fees may apply.

×

Current is a financial technology company, not a bank. Banking services provided by and Visa® Debit Card issued by Choice Financial Group, Member FDIC, pursuant to a license from Visa U.S.A. Inc and can be used everywhere Visa debit cards are accepted.

×

Current is a financial technology company, not a bank. Banking services provided by and Visa® Debit Card issued by Choice Financial Group, Member FDIC, pursuant to a license from Visa U.S.A. Inc and can be used everywhere Visa debit cards are accepted.

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