Manage money online
Wednesday 9 May 2007
Most of us in the UK now have a computer with an internet connection and emailing, instant messaging and social networking have now becoming common place. But what about managing your money online? Find out the benefits and safety precautions in our need2know guide to internet banking.
Signing up
Almost all major banks and building societies now have facilities for internet banking. In order to bank online, you’ll have to register for special secure access.
This will involve calling your bank manager or branch and requesting to set up your online banking facility. You can also visit your bank’s website for information on how to set up your facility.
Your bank will then ask you for a series of security questions and answers. These can range from your mother’s maiden name, to a date of special significance to you. You will also be asked to set up a password and in many cases a personal identification number (PIN) as well.
At some point you will have to sign an application form and post it to the bank, because the law doesn’t yet recognise signatures sent over the internet.
Also if you are setting up a new account, you’ll need to identify yourself in some way before being allowed to activate your account.
Logging On
Once you have set up your internet banking with your bank, you will have to log on to access your accounts online. You will first be asked a random combination of questions that you set up initially, as well as entering your account details.
You will only be able to access your account if all the details you enter are accurate. If you forget your details you may have to go through the process again.
Convenience
The main benefit of internet banking is that you can manage your money online 24 hours a day, 365 days a year. No more waiting in line at the bank or post office to pay bills.
You can check your balance on all the accounts you have with that bank. You can also transfer money between your accounts and also to other people’s accounts in the UK. Most banks will also allow you to pay bills such as credit cards and utilities. Some banks will even send you emails reminding you when your bills are due. If you pay any bills by Direct Debit, these can also be managed online.
Most banks also offer basic admin over the internet. These include ordering new cheque books and paying in books, as well as the ability to view and print old bank statements.
Save money
Many banks offer internet-only savings accounts with better interest rates than your traditional high street banks.
Because internet banks are cheaper to run than those on the high street, these savings can be passed on to customers, giving you a better deal.
Safety
It is always safer not to log in to your account in a public place but if you do, try not to walk away from the computer for any length of time and always log off when you finish using it.
Emails
If you receive what seems like an email from your bank asking you for your information, ignore it or report it to your bank immediately.
This is called “phishing” (fishing for bank details) and are actually fraudsters pretending to be your bank in order to get access to your accounts. However real it may look, your bank will never send you emails or call you to ask for this information.
Keep it to yourself
It is important to keep your passwords and account details safe. Although it may be tempting, try not to store your password or other bank information on your computer. Keep it to yourself.
Choosing a ‘strong’ 6 to 15 character password for internet banking is the best way to keeping it secure. Use a mix of letters and numbers that you can remember without writing down. Also avoid using words that may be easy for others to guess, such as the name of a family member or pet.
If you do think someone has gained access to your information or account, change your password immediately. Most banks also allow you to do this on line.
