How to manage your accounts online

Online banking offers the ability for customers to manage their accounts online. Dozens of banks have an online banking option and all of them have slightly different policies concerning how the accounts are managed, but most of them have similar components.

Online banking encompasses savings, checking and sometimes investment accounts. With a single account, you can view transactions performed, stop payment on checks, view digital copies of returned checks and pay bills. If you have multiple accounts such as a savings and checking, you can immediately transfer funds from one to another. This becomes especially useful when trying to cover the amount written on a check by moving money from the higher interest savings account. Some online banking services will do this automatically for you so that you avoid overdraft fees.

Overdraft fees often result from those who spend too much without checking their account balance. These seldom make sense as how can a person who does not have enough money to pay the amount written on a check pay a typically $30 overdraft fee? Such fees add up quickly, and they do serve as a deterrent to writing hot checks. Some banks will have overdraft protection and online banks might give you the option to sign up for automatic balance notices. These notices are sent to your phone or email and inform you when one of your online accounts dips below a set amount. Knowing the amount of money in your accounts at all times can save you having to pay overdraft fees.

Check with your online bank about how they allow you to manage your banking accounts online.

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