Major banks like Citibank and Chase offer free online banking, while Bank of New York charges about $9 monthly. You can pay bills and transfer money from home, but you lose face-to-face advice from advisors, and older computers may need upgrades.
Here we go. Okay. You won't find Courtney Pulitzer fighting the noontime crowds at the bank. Courtney Pulitzer is one of the millions of Americans who are banking in cyberspace.
So much more convenient to be able to come home after working and be able to review your statements, download your, um, your balance, pay bills, transfer monies. It's so convenient.
Banks like Citibank and Chase are so eager to steer you to cyberspace instead of a teller, they're offering the service free. Others, like Bank of New York, charge about $9 a month for banking and bill payment. Competition is forcing banks to expand beyond the basics. Many will allow you to apply for loans and make investments with the click of a mouse. While some consumers are wary of security risks, many industry watchers say online banking is safe.
There's a lot of password protection, there are a lot of encryption codes. Banks have really taken a proactive stance because it's in their best interest to make sure that their consumers' financial information is not being leaked.
But before you jump on the cyber banking bandwagon, consider the pitfalls. If you have an older computer, you'll probably have to pay to upgrade it. And once you get online, you'll be banking without the benefit of an advisor.
You're not going to have someone there holding your hand throughout the process. So if you're the kind of person who knows that you like to be walked through things or who knows that you like personalized one-on-one contact, then online banking is not for you.
Depending on your needs, banking online may not be the most cost-effective tool.
Online banking sounds great. Hey, look how much easier this is going to be. But if you're the type of person who, A, doesn't pay a lot of bills every month, or doesn't go to see a teller every month, or doesn't really have a lot of banking needs, then there's really no reason to pay these kinds of extra fees.
And like all trips through cyberspace, you may hit occasional speed bumps. Courtney is having trouble logging on.
See, here I'm having to wait now.
Still, online banking is clicking with consumers. By the year 2002, an estimated 18 million Americans will cyberbank. For more information, log on to Money Magazine's website at www.pathfinder.com. You can also check out Bankrate Monitor's website at www.bankrate.com. Elizabeth Gerst, New York One.
