Online Banking

Online banking is the latest trend in personal finance, and it can be a powerful tool for managing your personal finances. With online banking, you can check your bank balance, transfer money between your accounts, pay your bills, invest and borrow through a single online account. And you don't have to worry about banking hours — the bank is up and running around the clock.

Accessing your account

There are two ways you can access your account. You can purchase banking software, which acts as an intermediary between your online account and you. Or, you can connect directly to your account through your bank's website, if your bank offers that option.

Online banking has grown increasingly popular for a variety of reasons. One of the biggest, though, is the real-time account information that's available to you. Knowing exactly what's in your bank account at any given moment puts you in a much better position to answer important questions like, "Is my car payment check going to clear?" Further, online banking is a great way to spot possible account fraud activities in your account earlier.

Pay your bills online

Another great feature of online banking is electronic bill payment. You can authorize your bank to pay certain bills automatically each month just by providing the payment information the bank needs and identifying your account from which you'd like to pay these bills. If you've sometimes been late in paying your bills, using this service can help you make your payments on time. If you'd rather authorize each bill payment as it comes due, you can do that too. And you always have a record of what was paid and when.

Some banks charge a monthly fee for electronic bill payment services, while others offer it for free or link the charge to your account balance.