TECH Electronic Banking: Q and A and Opinion Thread

[Nuthatch]

I am just curious: how many of you use a form of electronic banking?

I resisted until my last job required direct deposit. That ended up being great when the weather was bad.

Then I started paying my bills online from the bank....not through the bills' web sites but through my bank. There are no fees for this and you can set automatic payments when the bills don't change (like a mortgage) or even one-time payments, like a check to a friend or a bill that varies. Plus, I can see the records online 24/7 and track my expenses really easily.

Turns out I love it: saves money on stamps, I control what gets paid when, I can enter the bills the day I get them but schedule them to be paid weeks from now--I don't have to worry about forgetting anything, I can even set reminders. And if a deposit was to be late (never happened to me) I could hold the bills being paid because I control them...the bill collector doesn't have access (no overdrafts). I can transfer money from the savings to checking online and even get into our business accounts.

FWIW I use a credit union. I have a debit card I mainly use at Aldi's on occasion. I usually get spending cash once or twice a month and keep that at home.

What do you do?

 

[changed]

I am resistant to going cashless. I read the Bible and know how it all ends. Also, there is NO privacy in use of electronic banking.

 

[Nuthatch]

Direct Deposit was not available for unemployment. The bank that issues their credit/debit cards doesn't have services in my area, so getting dinged for fees would be a pain or I'd have to go to my bank and take it all out once a month....if I had to go in the bank anyway, I insisted on a paper check. You get the money slower by a day or two, which is ok,, as I plan for that.

 

[Desert Fox]

Had direct deposit, but that is all the only form of electronic banking I will use. I don't like the possibility of internet hacking of my account and I don't like giving permission to third parties to tap my account of their own voilition. Knowing that the IRS can do it scares me enough. Why borrow potential trouble. I will use stamps until they get so high I can pay my bills in person and save money.

 

[Nuthatch]

That's the point Desert---no third parties have my info any more than they would if I wrote a check. I control the whole thing through my bank.

I still pay cash for my day to day purchases, but I love paying online.

I also like not carrying a checkbook and risking its theft. Did I mention I can access electronic copies of my written checks online too?

 

[Volleyball Granny]

I use electronic banking. I love it. From the hospital, I paid my mortgage and my natural gas bill--with no problems or delay. The truth is that we are way past the olden days and resistance is futile.

I don't see using an ATM card any more the mark of the beast than having a social security number. I think that the mark is going to be a literal mark--a tattoo or something. After all, 90% of prophecy has been fulfilled literally--why would we think that the last 10% of prophecy will be fulfilled figuratively?

 

[Blastoff]

A paper check already has your bank account number and bank routing number, , I could clean out your account with that info, and now everyone that handles that check has that info, as well. They also have your name and address and your signature to copy.

 

[BertaBurtonLake]

I deposit enough to pay my monthly bills and leave a $20 balance each month. The rest I keep in cash. I have been doing this since April 2008.

Works for me.

 

[TerryK]

Welcome to the 21st century Nuthatch.
You are right when you say that mailing a check gives the receiver as much or actually more personal info than when the bank sends payment.
No more lost letters or stamps either.
People should know that your money is not really cold hard cash in the bank. It's all ones and zeros in a computer anyway. They just give you a few pieces of paper when you come in to withdraw some cash.
Many companies and most government agencies make direct deposit a requirement for employment now days.

 

[Kris Gandillon]

I have a book of 50 checks from over 12 years ago now...it still has over 20 checks left. That is how few checks I write...1-3 per year.

Have had direct deposit for as long as they have offered it. Have been banking online even before the Internet (when it was direct dial-up to the bank) and paying bills and purchasing on the Internet for as long as those technologies have been available. But of course I am a geek and computers and such technology have been my business and my wife's since 1974. Never had a major issue of any kind with any of it. Had far more "issues" with manual checks getting posted wrong at the bank and then having to call or write or go in person to fix the problem.

Kris

 

[jazzy]

i was never a fan of online banking til we moved and i had to get a new bank. now, i think it is a breeze. i do have direct deposit for unemployment, the other option was a wells fargo debit card and no way am i gonna do that.

when i make a deposit it is to pay certain bills online, i almost never write a check. anything extra i cash and keep. i can go online and see exactly when a bill i paid online goes thru. i print off copies of my online statement regularly, especially when i make a large deposit to pay something, i like having proof i deposited it and they show it in my account.

once unemployment ends ill probably only leave $20 to stay in the account.

one good thing about online banking, because i check my account daily, i was able to see a draft that came thru that i did not do. it was for $35, i called the bank and they looked it up. when i told them i did not make the draft, they returned the money immediately, closed my account and opened a new one for me.

i had to go to the bank and sign a form stating the draft was not mine and forms for the new account, thats all.

so i appreciate being able to check my account and not having to wait til i get a statement in the mail.

 

[fairbanksb]

I use electronic banking. I can't even remember the last time I even walked into my bank?credit union. My pension check is direct deposit on the first of the month and my credit union has a bill payer service. All of my payees info is on the service. I just check the ones I want to pay and enter the amount. The only time I write a check is when I have pizza delivered. I never have cash and use a debit card for pretty much all purchases.

 

[ceeblue]

I started paying bills online just to save stamp money and quickly came to appreciate the convenience.

Paper pay checks can be stolen and forged. Direct deposit is more secure.

Locally there is nowhere I would keep more than enough to pay the bills.

 

[Nuthatch]

Thanks Terry

I never thought I would do this, but it became so much safer and when you could send the money instead of letting someone (a payee/bill) take it by remembering their log-in or PITA procedure for each bill location (!!) I said, "go".

I truly find it convenient and safe. I want this to be a discussion, of course.

I just think there are a lot of myths out there about online banking. And I think there are a lot of pluses for most of us, in real life.

 

[Sysman]

My checkbook has about an inch of dust on it...

Seriously, I pay, quite literally, everything either on-line, with a debit card, or ATM cash for small day to day stuff.

My landlord was one of the last holdouts, still wanted a paper check every month. But about a year ago, they started accepting ACH transactions.

I use ACH for monthly bills - rent, power, cable. But let me be perfectly clear - NOBODY (except maybe the IRS etc.) CAN >>>LEGALLY<<< WITHDRAW MONEY FROM MY CHECKING ACCOUNT!

I am the one that initiates every transaction. I say how much to pay, and when to pay it.

I've been doing on-line banking since the late '90s. Started with BankDirect (they suck now). Today I use ING Direct, and my smallish local bank which has been on-line for the last several years. Never had a single problem...

For those that are worried about "hackers", the real problem isn't somebody using a "key logger" to get your login info. The real problem is somebody finding a way into the bank database. Then it doesn't matter. If your bank is "on-line", and just about every one is these days, then your account is just as vulnerable even if you don't personally use their "on-line" services...

What first attracted me years ago were the higher rates on-line banks were paying. Since they don't have to pay for a bunch of "brick and mortar" branch offices, they can pay more interest. If my local bank was offering 4% on CD, I could easily find 6% at the "on-line only" banks.

With the crap economy today, nobody is paying a decent rate. You're lucky if you can find a 1% CD these days, on-line or anyplace else. But up until a couple years ago, on-line banks were still paying a much better rate than just about every "traditional bank"...

Maybe we'll see that again some day, if we live long enough...

.

 

[Nuthatch]

Sysman said:

If your bank is "on-line", and just about every one is these days, then your account is just as vulnerable even if you don't personally use their "on-line" services.

Excellent point.

Of course, now that I have the money to ladder CDs it is pointless. So it goes.

 

[willowlady]

Been using online services

since they first became available through our bank -- it was about 1995 or so. As soon as they got bill pay, I started using that, too. In 1993 or so I started using MS Money to keep track of things, integrated that with the online services and it made a HUGE difference in how well we could plan and stay within budget. DH previously had a habit of using the ATM and "forgetting" to tell me. But that's a different story.....

Only once a $60 ATM charge came through that we had not drawn, so I called the bank and disputed it. I had made a purchase in the store that very day (if I had wanted cash, I would have gotten some when I went through the checkout line), and had NOT gotten cash from the ATM. They wanted to keep the charge on the account and I said if they could provide me a picture of me using the ATM that day, then they could charge me. They took it off and said they would investigate. They dithered around about two weeks and finally sent a letter saying the charge could not be verified. To this day I wonder how someone got our ATM information.... I haven't had a problem since then. I have told the online people that I watch my account like a hawk. Bet it's been flagged with a "don't mess with this one." The ONLY way I can see that the charge could have happened was from the bank itself. I can envision some kind of little spider sub-program from the bank that goes through and hits random accounts with "minor" ATM charges and most people aren't sharp enough to catch it, or don't know what to do if they do notice it. Would be a nifty little way for the bank, or someone in the bank, to make a tidy sum, wouldn't it? Pardon, my paranoia is showing!

 

[timbo]

We have online. Much more secure IMO.
We use a credit union. I can't give specifics, but I trust the credit union system more than a bank.

Bank, the word that leaves a bad taste in my mouth.

Knock on wood. Jump over a crack kind of feeling for me.

 

[Cardinal]

I use it, I have way too much to do not to. Paying bills is so much easier, the only thing I use a check for is the rent, landlady will not do things any other way. So I spend about 5 minutes a month paying bills, and other than internet connection, it costs me nothing to do so.

 

[Sysman]

I started using MS Money to keep track of things, integrated that with the online services and it made a HUGE difference in how well we could plan and stay within budget. DH previously had a habit of using the ATM and "forgetting" to tell me. But that's a different story.....

My local bank included FinanceWorks on-line a while ago. Pretty nice, lets you put everything into as many categories as you want, like rent, power, cable. You can split items, like ATM cash, into the categories, like lunch, beer, pocket change...

It also links to "outside" accounts, like my savings and CDs at ING. So I can get an up to the minute "big picture".

You can set "goals" and it tells you if you're + or - ...

Lots of "detail control", review the last xx days, last month, last year. etc.

And it draws some kool pie charts...

I like it. And it's part of the basic service, no additional charge...

.

 

[Josie]

I do electronic banking. I like being able to make transfers from savings to checking and vise versa, whenever I want. I also do electronic bill pay. I got dinged a couple of times with late fees because snail mail took and extra day or two or three to deliver the payment. Also I suspect that my payment would sit on someone's desk for a couple of days before they opened the envelope and once again, my payment was late. Now I pay and I can see when the payment gets there. I haven't had a late charge since I started using it.

 

[kjcap_777]

I deposit enough to pay my monthly bills and leave a $20 balance each month. The rest I keep in cash. I have been doing this since April 2008.

Works for me.

Works for me too. I wouldn't have it any other way.

I deposit, I pay, I track.
Everyday or so I check to see if any funny crap is going on, and have been doing this as of May 2006.

No problems yet
MCA

 

[Sysman]

The rest I keep in cash.

Remind me, where do you live again?

 

[knickgnat]

Been using for a long time now, love it. No more late fees, bounced checks, and no bank fees at all with direct deposit. If I need a check, I can print them on my PC.

 

[Nuthatch]

The only banking problem I ever had was at a drive-thru. A teller returned my entire cashed paycheck and license to the guy next to me. He got out of the car and got a tongue lashing from a teller to "get back in the car" and came over to me and asked my name, compared my photo and asked me to count the cash in front of him. That teller shut up real quick when I said, :you sent all my money to him and he is giving it back to me".

 

[Mixin]

A few words of caution for anyone who is anticipating any type of financial problems.

1. Make sure the bank who holds your account is not a bank who holds your mortgage. I'm not sure I would even bank with one who issued my credit card if I carried a balance.

2. If you are on Social Security, set up an account specifically for it and do not deposit any other money into it.

3. Removing your cash upon deposit and paying with cash or money orders leaves no trail.

With that said, I really like the convenience of electronic banking and have done it for years with no problems. There are a few contractors I issue checks to; but everything else is paid electronically.

I also like my pre-paid debit card.

 

[Moto]

Online banking is an incredible time saver! I manage all of my personal and business accounts online with ease, checking and all cards; and I would be swamped to do this any other way. I'm not kidding, I would otherwise probably have to hire a bookkeeper.

I don't set up automatic payments other than my mortgage, but it takes just a moment to pay a bill manually using my banks online payment system. It's also 100% free unless I need to overnight a check to someone, in which case I pay for the overnight charges.

Again, I cannot overstate the convenience of online banking. I also recommend using a program such as Roboform to create and manage web passwords. Not only is Roboform itself incredibly convenient, it allows one to create complex passwords and not have to remember them. Also, it defeats keyloggers as no key strokes are transmitted during the login process.

 

[rcstew]

Also, there is NO privacy in use of electronic banking.

? I am not sure I get this. How does privacy differ in electronic banking vs traditional banking?

 

[Nuthatch]

RCSTEW: You don't get it, because it is not true! Privacy is no different than with any other banking.

I suppose if you stored the password on a shared computer you would lose privacy. But who the heck does that? Complex passwords and changing them often is called for with any passwords. I do not access my bank account via unsecured wifi, as a rule. But I also don't shout my password out the window to the drive-thru teller.....common sense stuff here.

I think some folks have fears of the technology that self-limit their use of them. I am stunned that some even have phones and addresses...but now I am just being ornery.

 

[NC Susan]

Direct Deposit was not available for unemployment. The bank that issues their credit/debit cards doesn't have services in my area, so getting dinged for fees would be a pain or I'd have to go to my bank and take it all out once a month....if I had to go in the bank anyway, I insisted on a paper check. You get the money slower by a day or two, which is ok,, as I plan for that.

direct deposit is required by NC for unemployment.