Online banking 101

Consider online banking to maintain social distance

If the coronavirus has you self-isolating, you may be wondering how to do some everyday financial tasks. Consider banking online — especially if your bank has temporarily closed its locations.

“It’s everyone’s responsibility to prevent the spread of COVID-19,’’ says Richard Crone, a payments expert and CEO of Crone Consulting, LLC. “For the safety of consumers, the bank staff, all our families and the community, nobody should be walking into a branch. Financial services can all be obtained digitally. It’s a risk we don’t have to take.”

What is online banking? Online 1

banking lets you manage your accounts through your desktop or mobile devices. You can typically perform tasks such as transferring funds, paying bills, depositing checks and checking your account balances.

If you have questions that require a human to answer, you can usually reach out to the bank’s customer service reps via phone, social media, email or online chat as well.

There are many online-only banks, but these days, most brick-and-mortar banks also have online services their customers can use from home (or elsewhere).

Is it safe? Banking sites and apps take many steps 2 to keep your money secure.

Bank websites encrypt your data to prevent third parties from accessing it. Mobile banking apps often offer two-factor authentication, which requires you to login with your password as well as an additional code sent via email, call or text. Smartphone logins can be protected with passwords and sometimes biometric measures, like fingerprints or face recognition.

These mobile safety features can make other financial tasks simple and secure as well, such as using your smartphone’s wallet app to make contactless payments.

“It’s much safer to bank, and pay, with your mobile device,” Crone says.

What are the perks?

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• Most banking services can be done remotely. The only thing you can’t do from home is deposit and withdraw physical cash. If that’s a necessity, most banks have large ATM networks, but be sure to wash your hands afterward.

If your bank’s services aren’t mobileor desktop-friendly, consider opening a new account with a tech-savvy bank that allows online applications.

• Banking online saves time. Instead of driving to a branch, waiting in line and talking to a teller, you can finish your banking with a few taps on your smartphone.

• Sometimes you’ll get better interest rates. Online-only banks, which have few to no branches, tend to have higher interest rates. They save money on operational overhead, allowing them to pass the savings on to consumers.