Digital Banking Essentials: What Every Young Adult Should Know

Digital Banking Essentials: What Every Young Adult Should Know

Digital banking tools are designed with one thought in mind: Managing your money should be easy. Through mobile apps and banking websites, financial institutions empower you to access your accounts in seconds, right from your phone or computer. With just a few taps, you can check your balances, see recent transactions, transfer money from one account to another, pay bills and more.

Of course, sometimes there’s no substitute for in-person, face-to-face support — when you’d like some help applying for a credit card or loan, or you want to better understand budgeting or building credit, for example. That’s why many college students choose to open accounts with local community banks that have physical branches. While taking advantage of the convenience of digital banking tools, these customers have peace of mind knowing they can also reach out to personal banking specialists who can provide information, answer questions and offer guidance when they need extra support.

The benefits of digital banking

Convenience and flexibility are at the heart of digital banking tools. They enable you to bank anytime, anywhere you have an internet connection. You get fast access to your account information and can track your transactions to stay on top of your day-to-day spending and saving activities. Having these tools close at hand can help you build good money-management habits, stick with your budget and achieve your short- and long-term financial goals.

What to look for in a mobile banking experience

Today, most banks offer both online and mobile banking. When you’re deciding where to establish your checking and savings accounts, make sure your bank can support the following activities:

Checking your balances and transactions. Knowing how much money you have at any given time can be important to the financial decisions you make. Dinner out tonight? For sure! New phone? Maybe wait and save a little more. Regardless of why you’re checking your account balance, the experience should be quick and easy, no matter where you are.

An important note if you’re new to banking online: When you check your available balance either online or in your app, be aware that it may be lower than it appears. Debit card purchases can take a few days to fully clear, and scheduled transfers may not yet be accounted for. Be sure to factor in any outstanding items so that you don’t overdraw your account.

Transferring money. When you have multiple accounts, say a checking account and a savings account, you should be able to easily move your available funds between those accounts. Maybe you have extra money in your checking account that you’d like to add to your savings. You should be able to do that within seconds using a mobile app or online banking.

Paying bills. Online bill pay services enable you to manage your monthly or other regularly scheduled payments using your mobile phone or computer. You simply provide information about the company or service provider you’d like to pay and then schedule one-time or recurring payments.

Paying your friends and family. Peer-to-peer (P2P) payment services such as Zelle^®, Cash App, PayPal and Venmo can make splitting the rent or the cost of a pizza with a friend, or sending and receiving money from a family member quick and easy. P2P services enable you to send and receive money with people you know and trust, with funds moving directly between your account and theirs. Banks that offer P2P services may enable you to enroll through your mobile app or online banking account.

Paying yourself. If you’ve heard the advice “pay yourself first,” meaning you should stash some of your paycheck into savings before you’re tempted to spend that money, digital banking tools may help you put that idea into practice. Through Dollar Bank Online and Mobile Banking, for example, you can schedule automatic recurring transfers from your checking account to your savings account. Then, as you monitor your account balance, you can watch your savings grow!

Getting alerts. Your mobile banking app or online banking account should give you the opportunity to set up text or email notifications that can help you monitor your account activity. Your preferred notifications might range from fraud text alerts, which flag suspicious activity occurring in your account, to text or email notifications of debit and credit card activity, account balances (such as when your balance falls below a limit you specify) and other updates.

Depositing checks. When you receive a paper check as a gift or other type of payment, you can skip the ATM or branch when your bank’s mobile app includes a remote deposit feature. Using your phone’s camera, you can photograph the check and deposit it electronically right through the app.

Keeping your information — and money — secure. Banks are keenly aware of the risks of financial and personal identity scams, so they put measures into place to protect your information and finances. Look for biometric security features like touch ID and face ID authentication in the mobile app, and multi-factor authentication online, and know that there are additional security measures in place that you can’t see. There’s a reason companies in other industries strive to achieve “bank-level security”: Banks are committed to earning consumers’ trust by safeguarding their accounts and identities.

How to get started

If you have a bank account but haven’t enrolled in online and mobile banking, just go to your bank’s website or download its mobile app to register your account. You’ll need your bank account number(s) or debit card number to link your profile. Then create your login credentials, including a strong password to protect your account. Opt in to biometric safeguards, such as facial recognition or fingerprint scans, for fast, secure access.

If you would like to open a new account, or if you have questions about your banking options, the personal banking team at Dollar Bank is here to help. Reach out to us any time or visit an office near you.

Zelle^® and the Zelle^® related marks are wholly owned by Early Warning Services, LLC and are used herein under license.
Venmo is a registered trademark of PayPal, Inc.
Cash App is a registered trademark of Block, Inc.
 

This article is for general information purposes only and is not intended to provide legal, tax, accounting or financial advice. Any reliance on the information herein is solely and exclusively at your own risk and you are urged to do your own independent research. To the extent information herein references an outside resource or Internet site, Dollar Bank is not responsible for information, products or services obtained from outside sources and Dollar Bank will not be liable for any damages that may result from your access to outside resources. As always, please consult your own counsel, accountant, or other advisor regarding your specific situation.