Online Banking for Seniors

Want to simplify your life and reduce the load on your memory? Try online banking. Once you do, you will certainly wish you had had the nerve to start sooner. According to researchers, over 10 million Americans do their banking online. Why not be one of them?

One of the best benefits for seniors is on-time payments. You can arrange for routine bills to be paid and sent automatically. Your mortgage and other recurring payments get made without your having to remember when they are due. My father set up automatic transfers from his savings account to his checking account; his Social Security and pension payments get transferred automatically from one account to the other while he is sleeping. Watch out, though: Get the timing right or you will end up like me, calling the bank to cover an overdraft because I timed things backward. Deposit first, then make the payment; it sounds logical, but I managed to get it wrong the first time.

Of course, it takes some getting used to. For so long, we have been hearing of fraud and security issues; what is more important to protect than your bank account? Here are some ideas to help seniors who are not accustomed to relying on the Internet protect themselves:

Instead of the common security questions like "What is your mother's maiden name?", try for the more difficult ones that identify you as you. Opt for the peculiarly personal ones, such as "What's your favorite food" or, "Who is your favorite musician?"

Don't stick post-it notes on your computer that display your passwords. (Newsweek reports that online bankers are 10 percent less likely to have their identities stolen than paper bankers.)

Monitor all electronic statements for any unauthorized debits.

Report problems immediately.

Install firewalls and antivirus and antispyware tools on your PC.

Last but not least, do not respond to requests for your personal ID information.

Seniors can do their part to be green by simply using online banking. Using online instead of paper checking saves trees and reduces fuel consumption by the trucks and airplanes that transport paper checks. In 2007, Time magazine reported that a switch to online banking would cut solid waste by 1.6 billion tons a year and curb greenhouse gas emissions by 2.1 million tons a year.

Starting your online banking account is seamless and will save you worry and time. Call your local bank to ask about setting up an account, and ask about the security measures they provide. Ask what they will cover in case you experience a loss. You will have to enter information for all your bills, but only once. Many times, the bank has already loaded common information, so you don't have to type it in. Give it a try and enjoy your new spare time!