The internet has infiltrated every aspect of our modern lives. We can watch movies, listen to music, talk with friends, and make phone calls online. We can buy a car, buy a house, or meet a future spouse, all online. Why should our banking be any different? Online banking is not only convenient it is safe, as long as you are responsible with your banking practices.

Banks are really hyping up online banking. They offer special incentives for opening checking and savings accounts online; higher interest rates, free checking, free personalized checks, the list goes on and on. What are the advantages to using online banking? Well, there are many. First of all, many banks offer higher rates for your savings or checking accounts if you use online banking. The higher your interest rate is for either of these accounts, the more money you make every year.

Banks want you to use their online services because it saves them money. If a person can use online banking to electronically pay a bill or transfer money from one account to another, that means their phone bankers or tellers do not have to do this, enabling them to help more customers and in the end making the bank more money. So, the more customers use online banking the more business the bank can do, and the more profitable they are. More profit for your bank isn't always a bad thing; if the bank is profitable then they may offer more incentives like even higher interest rates, which means more money in your pocket if you have an interest bearing account. Who doesn't like more money?

Online banking can have a seedier side. In today's climate of identity theft, one can never be too careful with personal information. Many banks require username and passwords to access account information online. Security questions are another method these sites verify customer identity. When choosing usernames and passwords many websites require a minimum number of characters, and some even require a combination of letters and numbers. The more complex a username and password is the less likely it is to be guessed by would-be-identity-thieves.

Remember; never ever give out your username and password, not even to your bank. They would never ask you to divulge this information to them; they don't need it to access your account for you. If someone asks you for this information, you should report them to the authorities immediately.

Security questions are a second layer of defense against bad guys. Choose your security questions carefully and make sure they are ones you can remember. It is your choice as to whether or not you are truthful in your answers to these questions, just as long as you can remember the answers to them. If you choose to write down your privacy information, make sure you keep it in a secure place where no one can get access to it.

Online banking is an important part of our personal finances; it can make money matters easier to handle. Remember to use it wisely and responsibly, and you will reap its rewards tenfold.