Online banking also allows you to transfer money between accounts much more quickly and check on your available funds before spending money. It is more convenient than using the automated phone service and can save you a trip to the bank.
When you apply or set up your online banking, be sure that all of the accounts you have at the bank are listed. This will make it easier to transfer money and make loan payments online.
You also have the option of transferring money between different banks online. This will not happen as quickly since the money still needs to go between financial institutions, but it is much more convenient than running to the bank.
Depending on the type of account, your bank may limit the number of online transfers and may hit you with a fee if you go over.
You can also use online banking to manage your money better by setting up more than one savings account at the same bank. Not all banks offer this, so check around.
After each paycheck, for example, you can go online and transfer money to different savings accounts to save for various goals, such as an emergency fund or a down payment for a new home.