Far in the past are the days of being required to to travel to the bank and talk to a teller just to enter a deposit, withdrawal, or funds transfer from one account to another. Back then, it used to be that most transactions took place at the physical bank itself. The recorded records were kept on physical paper, and physical cash was the payment method of choice – in any other case, checks were used to demand transfers of funds to another person or company. Bills that you got from the home loan company, electricity company, phone provider, water service, etc. were sent to the house, then before it was due, a check was mailed from the customer to the service provider for a credit to the account.
While many of these practices are still possible, and are even still used by many people, there is no need to do these transactions in person for most people. Everything from the auto loan, to your credit card bill, to your mortgage payment can be taken care of over the internet! To get started on the right foot, contact your bank and look into their online banking system. Often, you will be able to find such information right through your bank’s website. Often you will be required to call them to activate your online banking account, while other times you can merely enter your bank account number and answer a few “secret questions” to activate online access for the account. Don’t be surprised if your bank has some hefty safety systems to make sure your account stays secure.
Once registered, you can use electronic transactions to either “push” money to your bills (by initiating the transfer from your personal bank itself), or to “pull” the funds from the bank account by the receiving institution. Pulling funds is considered to be definitely a little bit sounder than pushing the funds, since there is much less of a chance they will unexpectedly wind up in the inproper account.
Online banking transactions can be taken to the next level by arranging for the automatic payment of bills. For example, if your mortgage payment of $1,435 is due to be paid on the very of every month, you can set up that amount to be digitally withdrawn and thrown to your home loan facility exactly on the first, without you doing anything.