You must have heard a about online banking. It is growing in popularity as more people use the internet. In early days everyone use to operate their accounts manually, they pay bills by mail and deposit checks at the bank branch. Now The things have changed drastically. Today many banks offer Internet banking services which enable you to manage all aspects of your account online, 24 hours a day/365 days a year without ever having to leave your chair.

Online banking gives you the option of bypassing the time-consuming, paper-based aspects of traditional banking in order to manage your finances more quickly and efficiently.

Online facilities include:

• Checking statements
• Checking balances
• Paying bills
• Transferring funds between bank accounts
• Check your account activity
• Send and receive money
• Contribute to your RRSP and double-up on your mortgage payments

When deciding on an internet banking account, you should consider some factors:

• Minimum balance requirements
• Monthly maintenance fees
• ATM fees
• Availability of online and telephone banking
• Whether the account comes with a debit/check card

Banks view online banking as a powerful "value added" tool to attract and retain new customers while helping to eliminate costly paper handling and teller interactions in an increasingly competitive banking environment.

Online banking, variously known as:

• PC banking
• Home banking
• Electronic banking
• Internet banking

Brick-to-click banks: The banks or credit unions that offer some form of online banking are sometimes referred to as "brick-to-click" banks.

Virtual banks: Some banks are pure Internet banks and do not maintain any bank branches or buildings accessible to the depositor or we can say that they are banks without bricks, they exist entirely on the Internet, where they offer pretty much the same range of services and adhere to the same federal regulations as your corner bank. These banks can often offer better rates and fewer restrictions in exchange for providing you with less flexibility around having instant access to your money. The major disadvantage of virtual banks revolves around ATMs. Because they have no ATM machines, virtual banks typically charge the same surcharge that your brick-and-mortar bank would if you used another bank's automated teller. Likewise, many virtual banks won't accept deposits via ATM; you'll have to either deposit the check by mail or transfer money from another account.

Advantages of online banking:

• Online banking is more convenient than the corner banks, they're always available 24 hours a day, seven days a week, and they're only a mouse click away. 
• It is efficient in terms of managing your accounts, paying bills & many more. You can access and manage all of your bank accounts, including IRAs, CDs, even securities, from one secure site.
• Online Banking is anywhere you have Internet access so if you're out of state or even out of the country when a money problem arises, you can log on instantly to your online bank and take care of business.
• Transaction speed is very high generally quicker than ATM processing speeds.
• Many online banking sites now offer sophisticated tools, including account aggregation, stock quotes, rate alerts and portfolio managing programs to help you manage all of your assets more effectively.

Disadvantages of online banking:

• To register for the bank's online program, you will probably have to provide ID and sign a form at a bank branch. If you and your spouse wish to view and manage your assets together online, one of you may have to sign a durable power of attorney.
• Banking sites can be difficult to navigate at first. You have to devote some time to understand the whole program. 
• Most of the banks periodically upgrade sites, adding new features or deleting some old things. In some cases, you may have to re-enter account information.
• For many people, the biggest hurdle to online banking is learning to trust it. Did my transaction go through or not? it is the most common question that comes in the mind when you are doing banking online.

Internet banking is becoming the most common way finances are handled. The Internet offers you the opportunity to bank and shop in safety at your convenience. There is no reason why it should not be used with confidence, but you should not relax your guard when online.