Online Banking and Linking External Accounts

One of the best features of online banking is linking external bank accounts. The basic idea behind linking an external account to your existing bank account is the ability to transfer funds between the two accounts online. The transfer of funds online is much easier and faster than mailing a paper check from one bank to the other. It is also cheaper than paying to wire transfer funds. In fact in most cases it's free! And to the surprise of some, it can be a safer way to transfer funds. According to recent statistics, identity theft is more likely to occur through the use of paper records than from the hacking of a bank's website. That doesn't mean you don't have to protect your data and your computers on your end, but it does mean that the overal level of online security at banks is very good.

Linking an external banking account is easy. Most banks offer the feature for free through their online banking platform. Often the banks will require you to verify a deposit or two which can take up to 1 to 3 days. Some banks will limit the type of account you can link to checking accounts, but other banks will allow you to link to money market accounts and savings accounts as well as checking accounts. Transfers from a savings account or a money market account will count against your monthly withdrawal limitations.

Linking external banking accounts is smart even if you do have a pressing need to tranfer the funds. Savers who like to shop for the highest bank rates can link external bank accounts and use external transfers to maximize the rate of return on their savings. Benjamin Franklin said: " A penny saved is a penny saved earned", but a penny saved at a higher interest rate is even better.

Showing 1 comment | Add your comment