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    6 Replies Latest reply on Feb 27, 2009 8:09 AM by san.stephens

    online banking

    elochka Wayfarer
      I don't know much about online banking, but would they be good for your business checking/savings account if you are in a rural area or move a lot?
        • Re: online banking
          Lighthouse24 Ranger

          Are you asking about a brick-and-mortar bank that offers on-line banking (like BoA), or a virtual bank (i.e. there is no physical building with tellers, safe deposit boxes, etc.)?

          The first is good in any situation, as far I'm concerned. I'd recommend that almost anyone use the on-line banking features offered by major brick-and-mortar banks.

          The second has some disadvantages -- (1) if the technology is unavailable, so is your bank (for instance, if you need money for a storm-related emergency and have no power or Internet access, it's nice to have "real" bank to go to); (2) poor customer service (like other "on-line only" businesses, everything is automated -- it's hard to find a real person to handle a problem); (3) deposit transactions can take much, much longer to clear (if your small business gets paid, you usually need the money to show up in your account NOW, not in ten or fifteen days); (4) security and regulatory oversight may be not be as good (depending on where the virtual bank is based).

          Hope that helps. Best wishes.
            • Re: online banking
              elochka Wayfarer
              I would probably go with a known bank then with real offices, but do you have to apply there or could you do that online?
                • Re: online banking
                  Lighthouse24 Ranger
                  Most banks and credit card offerers have an "apply on line" feature -- but many require new business owners to come in anyway, or to fill-out and return something by mail, in order to complete the application process. So you can try applying on line, but don''t get upset or discouraged if it doesn't allow you to go through the whole process. (I think some state laws require more than an on-line application, too -- so that may figure in.) Good luck.
              • Re: online banking
                VishSastry Wayfarer
                One big advantage is higher interests that online only bank pay. You may want to check out ING. Thanks
                • Re: online banking
                  Lighthouse24 Ranger
                  I agree -- on-line banks offer higher interest, and ING is a good firm.

                  I'm an ING customer, and have been since they acquired Aetna's financial services in 2000. For me, they've been easy to work with and I highly endorse their small business savings and retirement plans, but I would (and do) use full service brick-and-mortar institutions with on-line banking for my business checking (and payroll processing). In my small businesses, money goes in and out of operating accounts (i.e., lots of checks, transfers, and deposits -- and average balances are never that high) so it makes sense for me to give up a half-point in interest in exchange for being able to do a higher volume of "no fee" transactions. Plus, I like having face-to-face access to a bank officer.

                  It's really a case of analyzing your cash flow, comparing the features and fees of various banks and banking products, and deciding what's best for your business. (If you find something better later, you can always change.)
                  1 of 1 people found this helpful
                  • Re: online banking
                    san.stephens Newbie
                    Online banking is certainly getting popular
                    these days. It's not only safe but also saves a lot of time. Moreover, place
                    and time become irrelevant with online banking. I would definitely recommend
                    using it. Check <a href="http://www.igoonlinebanking.com/">IGOOnlinebanking</a>
                    for more info on internet banking. Cheers!