The number of people who check their bank balances and pay bills online are growing. According to an Ipsos-Forbes Advisor U.S. Weekly Consumer Confidence Survey, more than three-quarters of Americans with bank accounts (78%) prefer to bank online.
That still leaves 12% of Americans who manage their money the old-fashioned way, in person at a local branch.
If you haven’t made the switch yet, this article might change your mind. You can do a lot more than just check your balances and transfer funds once you go digital.
1. Automate Bills
Keeping on top of everyday bills is a lot easier once you go digital. Online banks make it possible to automate regular bills, so you don’t have to sign in every month to transfer money. More importantly, you don’t have to send checks or speak to a teller every time you want to pay off debt.
But perhaps the biggest advantage to automating bill payments is how you can avoid late fines. Once you set up these payments, your bank will send money to your creditors like clockwork, so you never miss a due date.
There are just two things to keep in mind when automating bills.
It works best for regular, fixed bills that stay the same each month.
You should always make sure you have enough money in your accounts to cover the payments or you might overdraw your account and face a penalty.
2. Borrow Money
People borrow money all the time. Some people get mortgages to afford a new home. Others take out lines of credit for household repairs or apply for cash advances to cover an unexpected medical expense.
Traditionally, asking for money in-person involves jumping through a lot of financial hoops to show the bank you can be trusted to repair what you owe on time. In some cases, going through all that red tape can take weeks to complete.
In urgent situations, when you need money as soon as possible, going digital may help you get funds faster. You can find a same day cash advance that delivers your funds the same day as you’re approved.
While the exact speed of same business day loans depends on your financial institution and bank’s deposit release policies, it can cut down on the typical wait time for funds.
3. Earn Interest
Savings are important. Not only can they help you handle emergencies without needing a same day cash advance, but they also help you achieve your life’s biggest goals, like going on vacation or buying a new car.
But have you ever thought about the interest you earn on the typical savings account? Interest can help you grow your savings while staving off the effects of inflation.
Going online can help you earn more because digital financial institutions don’t have as many overheads as banks with brick-and-mortar locations. They share some of those cost savings with their customers by increasing the Average Percentage Yield (APY) on their accounts.
4. Track Spending
When you do everything online, you’ll have an electric paper trail that’s easy to review. You’ll be able to track your spending to understand your cash flow better, giving you a chance to catch bad habits and improve your savings. You can also detect signs of identity theft and fraud should someone use your line of credit or credit card.
Even better, you can automate this task with budgeting apps that ring the alarm when you’re overspending.