Most banks now offer online banking with both online checking accounts and online savings accounts. Online bank accounts operate much like standard bank accounts. In fact, an online bank account is exactly the same as your pre existing bank account, only now you can handle transactions and maintenance from the comfort of your own computer. If you have an account with an American bank, chances are you already have an online account. Most domestic banks have been encouraging customers to switch to online banking for the last few years. Even if you have never used online banking, it is easy to activate your online accounts. 



The first thing that must be mentioned about online banking is that it is actually very secure. Online checking accounts and online savings accounts are just as secure as the old brick, mortar and paper bank accounts. Many people believe that online banking is risky, but with the proper safety precautions it is no more risky than actually walking down to your local bank. Best of all, online banking lets you view your balances and transaction history at any time, and you can make instant, real time, account transfers.



An online savings account accrues interest and cannot be used with a check card. Online checking accounts do not gain interest, and can be used for online purchases. It is easy to transfer money between your online checking account and online savings account. This transfer only requires a few clicks of the mouse and the money can be instantly transferred. Online bank accounts also make wiring money a breeze, as your account numbers and routing numbers are easily visible on your private account page.



Because security is such a big issue on the cyber banking world, many online banks will have several layers of security. You will likely have a user name and a password. You will have to state where you opened your account. And, you will also likely have a private site key and several security questions. When accessing your accounts away from your home computer you will likely have to navigate all of these security checkpoints. You should always try to have the strongest password possible. Passwords that combine letters and words with more than ten characters are often the strongest. 



Because online banking is the future of American banking, all banks take online security very seriously. In many ways, online banking makes it easy to avoid fraud, because you can monitor your account activity in real time, and it will be easy to tell if there is any unwanted account activity. For convenience, speed, and ease of use switching to online checking accounts and online savings accounts is a really great move.