The capability to conduct a wide range of financial transactions that require interaction with the bank while a person is in a distant location is sometimes called home banking. Such capabilities may also be referred to as electronic or online banking. The types of transactions that can be conducted in this manner include applying for new bank services, checking balances on existing accounts, and transferring money between a person's accounts and to the accounts of others. Benefits of home banking include convenience, speed, and savings.
With online banks, the majority of transactions that require interaction with the financial institution are conducted by way of home banking. The possibility of home banking is not limited to these types of financial institutions, however. Brick and mortar banks also commonly offer their clients this service. In many instances, however, when dealing with brick and mortar banks, the capability is not automatically granted and may require a person to apply.
Although the terms “home banking” and “Internet banking” are used interchangeably, they can both be misleading. To begin with, this capability is not restricted solely to people who are in their homes. This capability requires electronics and an appropriate network. When those two components are available, distant financial transactions can be conducted from nearly anywhere. Also, there are some transactions that do not require the use of the Internet.
With home banking, a person can accomplish numerous tasks using a touchtone telephone. This includes checking balances, transferring funds, and confirming transactions. There are generally more transactions that can be conducted if a person has access to the Internet. One, which became increasingly popular after its availability, is online bill payment. This makes it fairly simple for a person to transfer money to her creditors.
Convenience is one of the major benefits of home banking. People can conduct the transactions necessary at the times that suit their needs without regards to whether branch offices or customer service centers are open. Another major benefit is speed. Traditional methods of banking such as mailing checks to creditors or depositing checks that must clear can take several days. Home banking allows a transaction to be completed normally in a matter of seconds or minutes.
This method of conducting financial transactions can also be considered cheaper. For many, it eliminates the need to purchase checks and the postage to send them. Fees for services such as printing statements at an ATM can also be avoided.