by Starla Ross

Created on: September 03, 2008   Last Updated: January 24, 2009

Online banking is everywhere. These days it is the rare bank that does not offer online bill pay services, 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 With online bill pay, you simply set your bills to be paid on a certain date by having them withdrawn from your checking or savings account.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 You can have your payment withdrawn the day your bill is due (versus sending a check two weeks before the due date to make sure it arrives in time) - letting your money earn the most interest for you.

As a banking customer, you may ask yourself if an online bill pay service 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.

It is possible to pay each of your creditors directly through their individual websites. Most utility companies, lending institutions, and mortgage companies do allow you to pay bills online. However, doing this could mean having to remember up to 15 or more different user names and passwords.

If you're thinking of using bill payment online, it's easier to open a checking or savings account through one bank and pay all of your bills through that one web site.

First, 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.

Next pick a user name and password for your online banking account. Sometimes this will be assigned to you by the bank, but most

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