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Internet Banking

By Edited Aug 26, 2015 3 4

What Is Online Banking

Online Bank Account

Internet Banking

My Internet banking experience created more unnecessary work for me.  I decided to write this review about Internet banking to help others with what to expect when they decide to do business with an Internet Bank.

I can understand the incentives Internet Banks offer are impressive.  The Internet Banks generally offer a higher interest rate on your hard-earned dollar and that is how two Internet Banks got me to open an account with them.  The interest rate was so high that it was hard to ignore the opportunity to save money faster.  Each weekend I watch CNN or FoxNews channels and would see the commercials showing how much higher the interest rates using Internet Banks compared to my local bank around the corner.  A higher interest rate helps people save money faster.  I'm sure you agree that this does make sense but as time went on the Internet Banks lowered the interest rates on my accounts and started to charge me every time I transferred money to my local bank.  The higher the interest rates incentives were at first became not so appealing to me over time.

When I decided to open two Internet Banking accounts at two different online banks, the process of opening an account is time-consuming.  I was asked to fill out a lot of online forms, create a user name and password, create security questions if I ever forgot my username or password and then I was asked to wait for the information to be mailed to me in the regular mail.  A couple of weeks went by, finally received my information I supplied online already then had to sign in to confirm following some steps.  OK, the process takes a while but the result was to help myself save money faster than I would if I kept all my money in my local bank.

Under Lock And Key

Internet Banking

The first year I opened the two Internet Banking accounts did help me save money faster because I was receiving a higher interest rate on a dollar.  Not bad, I was thrilled and I was saving $5000.00 to put a down payment on a new car.  I continued to add money each week by transferring money from my local bank to the online bank and my local bank was not charging me any transfer fees.  This was all good until the day came when I needed to take out the money I saved to go buy a new car.  OH MY, what a hassle it was to get that money transferred to my local bank so I could withdraw it to put a down payment to buy that new car.  Because I was going to withdraw most of the money I had saved, I had to call the customer service number and the customer service representative explained to me that I had to physically go to the bank to ask for a withdrawal.  Well that left me lost because the Internet Bank did not have a bank in the area I lived.  Requesting a withdrawal became a chore and held me back a week to purchasing that new car I wanted and needed.  So, I was informed where the closets place was and had to drive miles away to ask for a $5000.00 withdrawal and because I had to ask for a Cashiers Check to bring as a down payment, the bank had the nerve to charge me a fee for the cashiers check.  I was livid but I did stay calmly livid.  OK, after I brought my down payment into the car dealer and went through the steps needed to buy the car and change my car insurance, the first free day I had I went to close the Internet Bank account.  I had to drive back to the Internet Bank site that was miles away from the area I live and spent about an hour closing the account.  What a pain in the butt.

I thought sharing my story would help anyone who is considering opening an Internet Banking account to get more for their money.  Call first, ask the questions such as is there a bank location near the area I live and find out if they charge a fee when if you choose to transfer money to another bank account?  Also make sure they don't charge you checking account fee or charge you money for not having more than a hundred dollars in your accounts.  Online banking from my experience are banks looking to make a quick buck off of anything they can get.  I had to go out of my way, wasted energy and time trying to withdraw money I saved.  I happen to find that ridiculous, don't you?

Internet Banks have come a long way.  After my first experience of withdrawing money and being charged to withdraw my money, I decided to close the second Internet Banking account I had open for a couple of years.  On 8/8/11 I decided to close the one other Internet Bank account I had.  I tried to sign into the account and because I have not signed in to the account in six months or more, I had to call customer service to help me sign in to view my account so I can see how much money I had in that account and then had to request my money be transfer to my local bank and needed the customer service to help me close the account.  The customer service representative was very helpful but with this particular Internet Bank account, I was not able to close the account on my own.  I had to call for help and of course they asked why I was closing the account.  No biggie but opening the two Internet Banking accounts was one of the many mistakes I've made but I did learn from those mistakes and now understand how Internet Banking really works.

I'm not knocking down online banking but I am knocking down opening Internet Banking accounts that don't have a main office in or near the area you live in case you ever need in person help.  Getting the right people on the phone, explaining your situation to several different customer service representatives and not having access to your money is a huge pain in the butt.  I have an online banking account with my local bank and I use it to pay bills and to view my accounts but I can also drive for five minutes and walk into a bank to make deposits or withdrawals (with no hassles) and able to speak with a customer service representative if needed.  I appreciate being able to have access to my money all the time.

Think twice, ask those questions and make sure you can have access to your money without being charge a withdrawal fee.


Aug 9, 2011 11:12am
Thank you for sharing your experience. I have been tempted to open an online account, but haven't. Lucky me! I will keep your tips in mind now.
Aug 9, 2011 10:02pm
Your Welcome. Yeah, my experience taught me how the online banking works but for me, online banking don't work. I learned a lot and wasted a lot of time learning then closing the accounts.
Aug 18, 2011 3:33am
My bank gives you the option of an esaver account. With this I just transfer from a basic account to that online and back out when ever I want.
This account does not show when going to the bit outside the banks only online. If I go and transfer in the bank or withdraw in bank it costs $5 so I just transfer to basic account and withdraw wherever I want.
I know I get more interest in esaver than in the westpac basic account.
Dec 6, 2011 9:21pm
Glad you shared your experience. Some banks are great at online banking but many are not. Before I place my money in an online bank I always research the fees and I try to get a recommendation from a friend.
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