by C. Elliot

Created on: July 24, 2008   Last Updated: August 11, 2008

With the ease and convenience of online banking, more people are opting to take advantage of their banks' online services. But before you make this move, keep in mind a few simple but important steps that will set up you for success.

1. Contact your prospective bank to ensure that they offer online banking and bill pay. While such services are increasingly common, they are not yet universal (particularly in the case of smaller banks). Also, find out if your bank charges any extra fees for online banking. Know what any fees are, so you won't be surprised later.

2. Learn the ins and outs of your online banking site. Ask your bank detailed questions about where to go online, what account information you need to log on, and if there is anything else you should know. Being educated will help you most effectively handle your finances online.

3. Set up bill payments automatically. Bigger banks usually have tutorials on their websites, demonstrating how to use online banking through their company. Using automatic payments is fast and simple. Perhaps you may know that you will be paying exactly $29.99 for your Internet every month. You could set up an automatic payment, telling your bank to pay $29.99 to your Internet provider on a designated day each month. Setting up automatic payments is a great way to simplify your finances. No longer will you constantly remind yourself to pay "such-and-such bill."

4. If you choose to use automatic bill pay, periodically check your online banking page to make sure that all payments are being processed as they should be. Continue to monitor incoming bills from your service providers. If one of your service providers raises its fees, be sure to update your automatic bill pay settings accordingly. Also, inquire about your recipient's automatic payment options. Some credit card companies, for example, can work with your bank. They can tell your bank how much you owe each month, and your bank can pay that unfixed amount automatically. You don't have to do a thing!

5. Keep in mind that not all automatic bill payments are received instantaneously. Some banks pull the set payment amount from your account and then send a paper check to your payment recipient. Checks sent via snail mail can take several days to be received and processed. Find out how your payment recipients receive online bill payments; and, if necessary, set payments several days in advance of their due date.

6. Know your bank's customer service phone number. Online banking

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