Are you tech-savvy with your banking?

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The internet not only makes banking easier, but can help you find the best deals on credit cards, loans, savings and current accounts. We show you how.

Gone are the days when, if you wanted to put money into your bank account, transfer cash or even just check your balance, you had to pay a trip to your local branch.

Nowadays, thanks to modern technology, there are a number of ways you can easily access your account without having to leave the comfort of your own home.

According to Nationwide, more people now access their accounts online than take trips to their banks’ branches.

Some 77% of consumers now bank online, compared to 69% who use branches.

Whether you’re a technophobe, a gadget geek or something in between, it’s worthwhile knowing what the pros and cons of online and mobile banking are.

The pros

As mentioned earlier, probably the most obvious advantage of online banking is that you can control your account from home, the office or anywhere you can get internet access on your computer.

For those with smart phones that can connect to the internet from wherever phone signal is available, this is even more the case. You don’t even have to sit down and get your computer out, you can access your accounts while on the move.

A lot of the banks have brought out special applications that make banking on your phone even easier.

Another advantage of online banking is the fact that being able to check your balances regularly can help you to keep on top of your finances and make sure you don’t overspend or run into your overdraft.

Some banks offer rewards to customers who choose to bank online, such as higher interest rates or lower fees. This isn’t always the case, though, so check first.

The cons

One of the biggest risks in banking online is identity theft. Fraudsters often send out emails that look like they come from banks, asking you to click a link and sign in to your online banking account.

The link will actually take you to a fake website, which could look almost identical to your bank’s site. If you then enter your account details and password, it’s essentially like handing over your card and PIN number.

To avoid this from happening, always make sure you are using a secure internet connection, that the address of the page you are on starts with ‘https’ and a padlock symbol is displayed.

Other problems that can occur with online banking are that internet connections can fail and websites can experience downtime, either for scheduled maintenance or because of technical problems.

Make sure you have a bank phone number to hand in case you can’t access your account when you need to.

Top online-only deals

Alliance & Leicester’s Personal Loan is only available online. This offers borrowers between £7,500 and £14,950 with an interest rate of 6.3%.

Telephone and internet-based bank First Direct is currently offering £100 cashback to those who switch to its 1^st Account, which comes with a £250 interest-free overdraft.

To qualify for this offer, you need to put at least £1,500 per month into the account within three months.

The Nationwide Mysave Online Plus account offers an interest rate of 3.12% on savings of between £1,000 and £3 million.

Savers with this account can make one free withdrawal a year and unlimited deposits.

Bear in mind, just because a deal is online only, doesn’t necessarily mean it is the market leader. Shop around and check whether you can get a better deal elsewhere before committing to anything.

**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**

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