Introduction to Internet Banking

While the services offered by high street banks and online-only institutions are essentially the same, many online-only banks, such as Smile or Egg and those listed in our Online Banking section, offer more competitive rates.

However, they can’t of course, provide the face-to-face customer service if their high street rivals.

Online banking advantages

Flexibility is the first and most obvious advantage of online banking. Your account can be accessed quickly, any time of the day or night, 365 days a year, doing away with the inconveniences of restrictive banking hours, public holidays and queuing.

It also means that you can set up direct debits, transfer money and pay your credit card bill no matter where you are in the world.

And if you have more than one account with the same bank – for example a current account, credit card and savings account – you'll be able to see all of your balances in one place.

While you don’t have to choose an online-only bank to take advantage of everything that online banking has to offer, these types of institutions can offer some of the best rates on internet-only savings accounts, online credit cards, personal loans and mortgage deals.

This is because internet banks are cheaper to run than high street operations, so savings can be passed on to customers. As with old-style banking, balances and statements can be viewed, funds transferred between accounts, bills paid and standing orders arranged as usual and debit and credit cards and chequebooks usually come as standard.

Getting started

If you want to switch to an online-only bank, then you will first need to open a bank account with your chosen provider. Otherwise, you can simply sign up for online banking with your existing current account or credit card.

Visit your banks’ website – many of which are listed on our High Street Banks page – where you will be able to sign up online for internet banking using your personal account details.

For added security, a personalised password or pin number will then be posted to you, allowing you to activate your account and get banking.

You will then be able to log in whenever you want, using a series of customer numbers, passwords, and security questions.

Security

Many people are concerned about online banking fraud, which increased by 55 per cent over the first half of 2009. However, there are a number of steps you can take to keep your accounts secure:

• Keep your ID, passwords and PIN numbers secret – never tell them to anyone or write them down
• Never send your personal details via e-mail as these can be easily intercepted
• Never respond to emails that might be phishing – your bank would never ask you to reveal your personal security details. If you have received an email asking you to do this, contact your bank for advice
• Never use an obvious password – such as “password” or something someone could easily guess
• Sign up to Verified by Visa or MasterCard SecureCode which add an extra level of security to online payments
• Always log out of your account and close your internet browser once you have completed your banking, to avoid your account details being accessed by someone else using the same PC
• Some banks offer their own free security software that can be installed to add an extra level of security, such as NatWest’s Rapport software that can be used on NatWest’s own website as well as any others where you're inputting personal information such as your credit card number or bank details
• Install up to date security software like Norton or McAfee on your computer to protect you from viruses and hackers