JP Morgan Chase Online Banking

In an age where I can purchase my clothes and food online, talk with my friends online, and even meet a spouse online—doesn’t it make sense that I can manage the funds in my standard bank accounts online?

It absolutely does.  Fortunately, the banks have heard our cry.

Online banking allows you to do everything that you used to do with your teller physically at the bank virtually over the internet. It is very easy to set up (different depending on which bank you bank with, simply ask your teller or search “[Bank Name] Online Banking”.

Why do I have several balances?

You may notice that your accounts each have two balances available.

1. Available Balance
   The available balance is the actual amount you have available to spend. This includes any “holds” or un-posted expenses on your account.
2. Posted/Present Balance
   The Posted/Present Balance is the amount that has already cleared your account.

What can I do with Online Banking?

Well, Like I said: Almost anything you can do in a brick and mortar bank.

1. Recent Activity
   This will outline all of the activity on your account for you for months, if not years, prior.
2. Transfer Funds
   This will allow you to transfer funds between your personal accounts, even accounts held at other banks.
3. Pay Bills
   By setting up online bill pay, you can have your bills automatically withdrawn from your account so you never pay another late fee again.
4. View Paper Statements
   This allows you to see all of your past paper account statements online in PDF form.
5. Order Checks
   This will allow you to order checks online.
6. View Rewards
   Many accounts allow for a rewards system when you use your debit card.  You’ll earn points for each dollar spent, etc.
7. Go to Customer Service

A savings account is a great place to store your money and earn a little interest, although they are a bit less accessible than a Checking Account (What is a Checking Account?)

As opposed to a checking account, when you store your money at a bank using a Savings Account, your money is not directly accessible (though it can be with a simple visit to the bank). By storing your money with the bank, you can be sure that your money is safe and secure.

The money is even further secured against bank failure by the FDIC (What is the FDIC?) as well.

Will I Earn Interest with a Savings Account?

You absolutely should. If you’re opening a Savings Account that pays zero interest, you should look into another bank. However, if you’re looking for any sizable interest a savings account is likely not the answer for you. The interest that you will receive will be very, very small. Often under 1% annually. But, minuscule interest is better than none at all.

Savings Account as Overdraft Protection

Many banks offer a great service called overdraft protection. Learn what Overdraft Protection is.

A checking account is an account held at a bank where they store and protect your money for you. This money is immediately available to you at all times, and the bank will usually provide extra services to you like a debit card, checks, and online banking.

By storing your money with the bank, you can be sure that your money is safe and secure.

The money is even further secured against bank failure by the FDIC (What is the FDIC?) as well.

Will I earn Interest?

Probably not, although it isn’t completely unheard of. Most checking accounts pay you via convenience and safety services as opposed to yielding actual interest. If you want to earn interest, you should consider looking into a Savings Account (What is a Savings Account?) or Investing.

Debit Card’s Convenience Factors

Most checking accounts are accompanied by a debit card.  This debit card makes it much easier to spend and access the funds in your account than to carry cash:

1. Mobility
   By carrying a debit card, you could have access to millions of dollars (if you were so lucky to have that amount in your checking account).  In order to have control over that same amount of money in cash, though, it would take carrying backpacks full of money.  This could be very heavy and inconvenient- not to mention it draws unwanted attention, which brings us to%hellip;
2. Safety
   If you carry cash, it is very easy for someone to steal from you.  There is little or no recourse and unless the police manage to catch the thief, you will likely never see your money again.
   With a debit card, however, as soon as it is stolen you can call your bank and cancel the card.  No thief will have access to it and your funds are much safer.