Online Banking vs Traditional Banking
Every day, our world becomes more technologically advanced, changing many aspects of our lives—including the way we bank. Read on to learn more about online banking and how it can benefit you.
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What is online banking?
Online banking is almost exactly what it sounds like—using the internet to conduct financial transactions that you would normally do at your local branch. Today, traditional banks offer extensive online capabilities, while some banks are completely digital, or online-only banks. When you access your bank account online, you can accomplish a variety of transactions, like transferring money, depositing a check, or paying bills, all from the comfort of your home.
Advantages of Online Banking
If you aren’t familiar with online banking, there are numerous reasons to give it a try:
- Convenience: One of the biggest perks of online banking is accessibility. Did you forget to deposit a check, or need to access your emergency fund after normal bank hours? With online banking, you can complete those tasks from your couch on your own schedule. All you need is a device with a web browser, a secure internet connection, and your bank account number.
- Online banking tools: Whether you’re looking to open a new account or apply for a credit card, major banks have advanced, user-friendly websites and apps to ensure you can find what you’re looking for. They also include cutting-edge tools to help your banking experience match your lifestyle. At Huntington, we designed our website and mobile app with smart, money-saving tools to help you effectively manage your finances.
- Safety: Online banking platforms have the ability to enable fingerprint or facial recognition, and they may ask for additional verification if you’re logging in from an unknown device, giving your account an extra layer of protection.
- Control: At any given moment, it’s more than likely we have our smartphone or computer close to us, giving us constant access to our bank information. That means we can monitor our accounts as often as we’d like, sometimes giving us real-time insight to any fraudulent activity.
Are online banks safe?
If your online bank is insured up to applicable limits by the Federal Deposit Insurance Corporation (FDIC), your money is protected against bank failure, but digital threats like hacking, phishing, or spam can make you understandably nervous about banking online. Many banks have cybersecurity measures in place to keep you safer, like website encryption or multifactor authentication.
You can also help take the protection of your finances into your own hands by implementing safer online habits:
- Change your password regularly: If you never change your password, or use the same password across multiple websites, you’re more susceptible to having your information stolen. Make sure you develop strong passwords and update them every few months to decrease the risk of being hacked.
- Never use public Wi-Fi to log into your account: It’s much easier for hackers to steal your banking information if you’re accessing it through a public network or computer. Always make sure you’re using a private, secure Wi-Fi connection or your own smartphone data connection to view sensitive information, like your bank account.
- Use two-factor authentication: This little bit of extra effort could make all the difference if your password is stolen. With two-factor authentication, you usually receive a code via text, phone call, or email to log into your account, in addition to your username and password. This can help prevent hackers from accessing your account if they steal your password.
- Enable alerts for text messages: You can often enable alerts from your bank so you can find out about any unusual withdrawals from your account immediately.
Do online-only banks have ATMs?
Whether you have access to ATMs depends on who you choose to bank with. If your bank is online-only, it might be harder to find a physical ATM associated with that bank. Some are part of a fee-free ATM network, but it’s important to research your bank so you know for sure.
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Mobile Banking vs Online Banking
Mobile banking and online banking are both ways to connect with your bank digitally, but are usually accessed in different ways with diverse user experiences and functionalities.
Mobile banking refers to transactions with a bank through a downloadable app or text message alerts‡ on a mobile phone or tablet. Through your bank’s app, you have direct access to your accounts and can efficiently pay bills, find ATMs, transfer money, or contact customer service specialists.
Online banking can be performed through your bank’s website using a browser on a mobile device or a computer. When logged into your online account, you can view account balances, download statements, or apply for certain products, like loans or credit cards.
Both mobile banking and online banking are very convenient, depending on your needs. For example, if you need to quickly check your account or send money to a family member, using a mobile app is likely the way to go. If you want to apply for a new credit card with your bank or view a more detailed statement, try logging on to your bank’s website.
What is traditional banking?
Traditional banks are evolving in the digital space to create a seamless banking experience, but they also offer brick-and-mortar branches and more products and services, like loans, mortgages, or investment management.
Advantages of Traditional Banking
Traditional banks often have the advantages of online banking, plus in-person service, to match each person’s needs. The advantages of traditional banking include:
- Local branches: A huge benefit of traditional banking is the ability to visit a branch and talk to a banker or customer service specialist in person.
- Online and mobile banking options: Most traditional banks offer the best of both worlds. If you prefer to do your banking in person, you can. However, if you prefer the convenience of a sophisticated mobile app or website, traditional banks accommodate that as well.
- Large ATM network: With traditional banks, you typically have ready access to local ATMs.
- Access to a variety of products and services: Traditional banks offer more than checking and savings accounts. You can use them to apply for a loan, manage your investments, or as the bank for your business.
Online Banking with Huntington
Huntington strives to build banking that defies expectations, through faster access to money, fewer fees, and smart savings technology, because we want to look out for you and the health of your finances. When you open a checking account with Huntington, you have access to a variety of savings and budgeting tools:
Huntington Savings Tools
- Money Scout®: When you enroll, this tool analyzes your spending habits, income, and upcoming expenses to find money you're not using in your checking account—from $5 to $50—then moves it to your savings, automatically§.
- Savings Goal Getter℠: Your financial goals are important, and we want to make sure you reach them. Savings Goal Getter℠ allows you to create up ten goals and we’ll keep track of your savings progress and show you how much you need to get there.
- Huntington Heads Up®: Sign up for our alerts to receive real-time updates on where your money is going, so you can realistically save and plan for the future‡.
Huntington Budgeting Tools
- Spend Analysis: Spend Analysis shows you how much you’re spending and where you’re spending, in categories like groceries and entertainment, so you can efficiently adjust your spending to align with your personal budget.
- Spend Setter℠: With this digital tool, you can easily set your own budgets for categories where you’d like to tighten up your spending, and we’ll update you on your progress.
- Look Ahead Calendar℠: Don’t let a payment catch you by surprise ever again. With our Look Ahead Calendar℠, you can see your upcoming transactions before they happen.
Additional Online Banking Advantages with Huntington
- Standby Cash®: You can qualify for a digital-only line of credit based on your checking deposit history, not your credit score†.
- Early Pay: At Huntington, we found a way to make payday come early at no cost to you. If you have a Huntington checking account with direct deposit, you could get paid up to two days early#.
- 24-Hour Grace®: Nobody sets out to overdraft their accounts, but sometimes life has other plans. That’s why we created 24-Hour Grace® – you receive more time to make a deposit to avoid an overdraft fee or get pending return items paid.
Huntington is proud to be a traditional bank with helpful, user-friendly online banking options, so you can receive the support you need in person, by phone, or through online and mobile banking.
§ Money Scout automatically schedules transfers from your selected checking account and credits your selected savings account. A money market account (MMA) cannot be a selected savings account for use with Money Scout. A scheduled transfer may be canceled before midnight ET on the day it is scheduled. Transfer amounts and frequency may vary and will reduce the money available in your account to cover other transactions. You are responsible for ensuring your account has sufficient funds. You may be charged overdraft fees if your account falls below -$50. Subject to eligibility, terms and conditions, and other account agreements.
Savings Goal Getter℠ is a service mark of Huntington Bancshares Incorporated.
‡Message and data rates may apply.
Spend Setter℠ and Look Ahead Calendar℠ are service marks of Huntington Bancshares Incorporated.
# You may receive a direct deposit up to two days early with Early Pay if 1) you have a checking account with us, 2) a recurring qualifying direct deposit, and 3) provide us a valid email address. It is at our discretion to identify which recurring direct deposits are eligible for Early Pay and it may take up to 90 days to identify those deposits that qualify. We cannot guarantee that you will receive the Early Pay service due to unanticipated circumstances. Early Pay is automatic and there is no fee. You can opt out of the Early Pay service at any time, by contacting a branch or calling our service center at (800) 480-2265 and asking to have Early Pay removed. For more information, please see a Consumer Deposit Account agreement, or contact a branch. Learn more at huntington.com/EarlyPay. Receive recurring qualifying direct deposits up to two days early at no charge. Some direct deposit types are not eligible.
The information provided in this document is intended solely for general informational purposes and is provided with the understanding that neither Huntington, its affiliates nor any other party is engaging in rendering financial, legal, technical, or other professional advice or services, or endorsing any third-party product or service. Any use of this information should be done only in consultation with a qualified and licensed professional who can take into account all relevant factors and desired outcomes in the context of the facts surrounding your particular circumstances. The information in this document was developed with reasonable care and attention. However, it is possible that some of the information is incomplete, incorrect, or inapplicable to particular circumstances or conditions. NEITHER HUNTINGTON NOR ITS AFFILIATES SHALL HAVE LIABILITY FOR ANY DAMAGES, LOSSES, COSTS OR EXPENSES (DIRECT, CONSEQUENTIAL, SPECIAL, INDIRECT OR OTHERWISE) RESULTING FROM USING, RELYING ON OR ACTING UPON INFORMATION IN THIS DOCUMENT EVEN IF HUNTINGTON AND/OR ITS AFFILIATES HAVE BEEN ADVISED OF OR FORESEEN THE POSSIBILITY OF SUCH DAMAGES, LOSSES, COSTS OR EXPENSES.
Third-party product, service and business names are trademarks/service marks of their respective owners.
24-Hour Grace®, Money Scout®, and Standby Cash® are federally registered service marks of Huntington Bancshares Incorporated. The 24-Hour Grace® system and method is patented. U.S. Pat No. 8,364,581, 8,781,955, 10,475,118, and others pending. Standby Cash is patent pending.
†
Standby Cash is subject to terms and conditions and other account agreements. A cash advance fee equal to 5% of the amount of the cash advance will be collected from your Eligible Deposit Account immediately after the cash advance is deposited in that account. A 1% monthly interest charge (12% Annual Percentage Rate) will be added to outstanding balances if automatic payments are not scheduled. Available through online banking or the Huntington Mobile app to individuals with an active Huntington consumer checking account with at least three months of consistent deposit activity of $1,000 or more, and an average daily balance of $200 or more over the last 30 days. An active or recent bankruptcy or other legal process may disqualify you. Other eligibility requirements apply, including your recent overdraft and/or return history, regardless of whether you are charged overdraft fees or have transactions returned or they are waived with our 24-Hour Grace® and $50 Safety Zone® services. We reserve the right to change eligibility criteria at any time. Line amount and/or ongoing availability may vary based on changes to your deposit activity, average daily balance, and number and length of overdrafts and/or returns on any of your Huntington deposit accounts. When any of your Huntington deposit accounts are in an overdraft status for more than one day, your Standby Cash line may be suspended until they are no longer negative. If 90% or more of the approved credit line is drawn three months in a row, Standby Cash will be suspended until it’s paid to a zero balance. Business checking accounts are not eligible for Standby Cash.
