High-Tech Banking, 24/7

For young adults today, it's hard to imagine life without gadgets and high-tech helpers. We want to make sure you know about some of the attractive electronic banking services beyond ATMs.

Internet banking (online banking) enables you to transfer money between your accounts at the same bank and view account information, deposits as well as loans, at any time.

Internet bill paying allows you to pay monthly and one-time bills over the Internet. Some banks offer electronic bill payment free of charge, others charge a fee that is usually less than what you would spend on postage.

Debit cards look like credit cards but they automatically withdraw the money you want from your account. You can use a debit card to get cash from an ATM or to pay for purchases.

Direct deposit enables your paycheck and certain other payments to be transmitted automatically to your bank account. "Direct deposit is free and it's fast — there's no waiting for the check to arrive at home and no waiting in the teller lines," said Kathryn Weatherby, an Examination Specialist for the FDIC.

Telephone banking allows you to use your touch-tone phone to confirm that a check or deposit has cleared, get your latest balance, transfer money between separate accounts at the same bank, and obtain details about services.

Automatic withdrawals from your bank account can be arranged free of charge to pay recurring bills (such as phone bills or insurance premiums) or to systematically put a certain amount of money into a savings account, a U.S. Savings Bond, or an investment.

"Your banking can be so much more convenient and easier to monitor and control when you have access to your accounts 24 hours a day, seven days a week, from your home or practically anywhere else," added Weatherby.

However, she also stressed the need to take security precautions with your electronic transactions and your computer, such as those discussed on Financial Fraud and Theft: How to Protect Yourself and Five Things You Should Know About Credit Cards. To learn more about electronic banking and consumer protections, see the Winter 2004/2005 FDIC Consumer News online at www.fdic.gov/consumers/consumer/news/cnwin0405.