by Starla Ross

Created on: July 24, 2008   Last Updated: June 14, 2011

Online banking is everywhere. These days it is the rare bank that does not offer online banking with bill pay, and most banks offer this service for free as part of the benefits of being an account holder.

Remember the days of sorting bills, writing checks, and licking envelopes? Not to mention the hassle of finding a stamp, paying for postage, and then taking your bills to the post office? With online bill pay, you simply set your bills to be paid on a certain date, having them withdrawn from your checking or savings account. Bills are never late, eliminating the possibility of missed deadlines or late payments. In addition, if your checking or savings is an interest-bearing account, you'll make the most of your money. You can have your payment withdrawn the day your bill is due (versus sending a check two weeks before the due date), letting your money earn the most interest for you.

As a banking customer, you may ask yourself if online banking is safe. The short answer is yes. All banks that offer online banking and/or bill paying services use encryption technology or SSL (Secure Socket Layer) technology. This simply means they are able to take your information and convert it into a string of unrecognizable characters to prevent theft of your important information. While it's not entirely impossible for your information to be stolen, you would have a higher probability of having your wallet stolen from you while walking down the street.

If you're thinking of using online banking and bill pay, it's easier to open a checking or savings account through one bank and pay all of your bills through that one web site. While it is possible to sign up to pay bills directly with each of your creditors, it is more time-consuming and cumbersome to do so.

1. Decide which bank you would like to use for online services. If your current bank offers online banking and bill pay, it's as simple as requesting this service. If you don't have a bank or your bank does not offer online banking, search for a bank that offers the service at no cost to you. You'll need to set up a checking or savings account with the bank first before you can use bill pay features.

2. Pick a user name and password for your online banking account. Sometimes this will be assigned to you by the bank, but most of the time you will select this yourself. Remember to pick a user name and password that is not your name, spouse's name, or your birthday, as this information can easily be located by a computer-savvy

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