A Beginners Guide to Online Banking

Rapid technological advances have resulted in more and more people turning away from traditional banking methods and using the internet to manage their finances instead. Opting for an online current account is fast becoming the norm, even if you are far from being an IT expert.

Online banking has a number of advantages, one of the chief ones of which is that you don't have to queue to transfer money or pay a bill. You can also access your account whenever you want from wherever you are, as long as you have an internet connection.

Security is often a concern to those thinking of opening an online account for the first time. Your bank, however, will have stringent security measures in place on its website to make sure that no one else can access your details or money. So how does online banking work?

Choosing an Account

One of the first things to do is to choose an online current account that is right for you. Most of the banks and building societies that are well-known high-street names offer online accounts.

As with traditional current accounts, different providers have different requirements. Some charge a monthly fee, some require a minimum amount to be paid in each month and others don't pay any interest.

There are a number of benefits on offer too. These range from cashback deals to free travel insurance or interest-free overdrafts. It is, therefore, important to work out what would be most beneficial to you when choosing your account.

Setting up an Online Account

Setting up your online account is a straightforward process. You will need to complete an online application form which asks for details about you, your home, your employment and your other bank accounts.

You don't need to worry about reorganizing all your direct debits either. Most banks and building societies will contact all your direct-debit providers on your behalf so that they can update their records with your new account details so you won't need to.

Documentation

To activate your online account, you will need to provide the same documentation that you would to open a branch account. This is in order to comply with money-laundering regulations.

You will need to provide proof of identity and of your address. There are a number of acceptable forms of documentation for this, including your passport, driving license, recent utility bills or a benefits book.

You will usually need to take your documents to your nearest branch to be verified before your account is activated. Once it is up and running, however, you will be able to safely manage your finances from the comfort of your own home.