Online Banking

Online Banking

The Online Banking also known as Internet Banking is the process of performing banking transactions using a financial institution website. Online banking is relatively new, but is becoming very popular and more and more customers of major banks do their banking online. The online banking is straightforward and easy and all you need to do it is a computer and Internet connection.

How does Online Banking work?

The online banking process starts with setting up an online banking for the customer by their bank. For example if you are a client of Royal Bank of Canada and want to bank online with RBC, then you need to call them or visit any of RBC's bank branches and they will setup online banking account for you. Your online banking login is usually your bank card number, and you have to choose a password. Once your online banking account has been set up, you can start banking online by going to your bank's online banking website and logging in there.

What can you do with Online Banking?

Once you login to your online banking account you can do various types of banking transactions, some of which we have listed below:

1. Transfer money between your accounts

2. Pay bills (telephone, hydro, etc.)

3. Pay your credit card bills

4. Invest online (buy/sell shares and mutual funds)

5. Apply for loans

6. Import bank statements

Is Online Banking safe?

The first level of security in online banking is your login information – your banking card and your password. Online banking websites employ https protocol, to offer a secured online communications. The communication between the customer and the bank's server is encrypted and thus very hard to decode if intercepted. Some of the Canadian banks provide additional layer of security by asking customers to enter several questions and their answers (the answers should be personal, presumably known only by the customer) before they start using their online banking account. Every time the customer login to his online banking account he/she is asked to answer one of these questions and if he/she fails then login is unsuccessful. An example of such a question might be “What was the name of your first school?” or “What was the name of your first dog?”.

It is very important to keep the computer you are using to do your online banking, up to date and to apply any software patches/fixes as soon as they are available. This will minimize the risk of hackers getting control over your PC and installing spyware programs. It is recommended that you use antivirus software and a firewall to protect your computer from unauthorized access.

Canadian Online Banking

All major Canadian banks including Royal Bank of Canada, Scotiabank, CIBC, Bank of Montreal, and TD Bank offer online banking. Online banking saves a lot of money to Canadian banks, because it doesn't require banking branches and tellers. Compared to traditional banking, Online Banking is the clear winner.

Online banking saves time to Canadian banking customers, because they can do their banking online from the comfort of their homes instead of waiting in the line in the bank branch.

Online Banking Tips

Never share your online banking password with anyone. Change your online banking password frequently. Do not use passwords that can be easily guessed like your birth date, or your spouse's name. Regularly check your online banking account for unauthorized transactions. Keep your computer patched and secured by using online software updates, antivirus software and a firewall.