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Online Banking: A Quick History

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Internet Banks: Pros and Cons

How Online-Only Banks Stack up Against Traditional Institutions

Figuring out where to bank starts with a decision about the type of institution you want. Do you prefer a bank with brick-and-mortar branches and its own automated teller machines (ATMs) or an online-only alternative that maximizes the mobile banking experience?

There are advantages to online banking:

• You may get a significantly better interest rate for your savings
• Some online banks have lower fees and fewer of them
• Most online banks demand low or no minimum deposits to open accounts

Brick-and-mortar branches also have advantages:

• Accountholders have access to personal service on demand at convenient storefront branches
• Depositing cash is much easier
• Brick-and-mortar banks have apps as well, and they're getting better

Key Takeaways

• Before choosing an online bank, it's important to decide what features are most important to you.
• The lack of overhead gives internet banks advantages over traditional banks, including fewer or lower fees and accounts with higher APYs.
• Internet banks lack personal relationships, no proprietary ATMs, and more limited services.

Traditional Bank vs. Online Bank: What's the Difference?

Traditional and online banks—also known as direct banks—both offer you access to your account online, and the ability to transfer money or perform other tasks with a few clicks of your cursor or taps on your phone screen. They're both subject to the same laws and regulations—online-only accounts are guaranteed by the Federal Deposit Insurance Corporation (FDIC) just like the accounts held at traditional banks. Security is the same overall, with both types employing such measures as encryption to protect your funds and identity.

But even if both types have become close cousins in some ways, important distinctions remain. Direct banks leverage their lower costs to offer better interest rates and, often, lower fees. Brick-and-mortar institutions offer a convenient array of options for deposits and other transactions including offering the option for face-to-face service at a bank branch when you need it. If you're on the fence about internet banks, this article may help you. It outlines the main pros and cons of this part of the banking industry.

As the commercialization of the internet evolved in the early 1990s, traditional brick-and-mortar banks began looking for ways to deliver online services to their customers. Though limited at first, the success of these early efforts led many banks to expand their internet presence through improved websites featuring the ability to open new accounts , download forms, and process loan applications .

This led to the birth and rise of internet-only banks. These institutions offer online banking and other financial services without a network of branch offices. The first fully-functional direct bank insured by the FDIC was the Security First Network Bank, which began operations on Oct. 18, 1995. Security First and those that followed were able to offer higher interest rates on deposit accounts and reduced service fees all because of the lower costs due to a lack of overhead .

As the choice in virtual banks grew, so did customers' enthusiasm for banking online. More than 60% of account holders do at least some of their banking on the internet, according to the latest report on banking behavior from the FDIC .

Investopedia / Jake Shi

Pros of Internet Banks

Despite the rising virtual presence of traditional banks, online-only competitors still offer some clear advantages for consumers.

Better Rates, Lower Fees

The lack of significant infrastructure and overhead costs allow direct banks to pay higher interest rates or annual percentage yields (APYs) on savings. The most generous of them offer as much as 1% to 2% more than you'll earn on accounts at a traditional bank—a gap that can really add up with a high balance. While some direct banks with especially generous APYs offer only savings accounts, most of them offer other options including high-yield savings accounts, certificates of deposit (CDs), and no-penalty CDs for early withdrawal .

You're less likely to be dinged with a  wide range of fees at a direct bank including those associated with keeping an account open with a low balance, making direct deposits, or paying by check or debit card. Accounts at direct banks are more likely to carry no minimum balance or service fees.

Better Online Experiences

Traditional banks are investing heavily in improving their virtual presence and service, including launching apps and upgrading websites. But overall, direct banks appear to retain an edge when it comes to the online banking experience.

A 2018 Bain and Company survey of retail banking customers found traditional banks lagged behind direct banks in the areas that mattered most to customers, including the quality of the banking experience and the speed and simplicity of transactions.

The gap between the interest rates earned by accounts in traditional banks and internet-only banks.

Cons of Internet Banks

Banking with an online institution also has its share of drawbacks and inconveniences.

No Personal Relationships

A traditional bank provides the opportunity to get to know the staff at your local branch. That can be an advantage if and when you need additional financial services, such as a loan, or when you have to make changes to your banking arrangements. A bank manager usually has some discretion in changing the terms of your account if your personal circumstances change, or in reversing a mandatory fee or service charge .

Less Flexibility With Transactions

In-person contact with a banking staffer isn't only about getting to know you and your finances. For some transactions and problems, it's invaluable to head to a bank branch .

Take, for example, depositing funds—the most basic of banking transactions. Depositing a check is possible with a direct bank by using its banking app to capture both the front and back of the check. However, depositing cash is downright cumbersome at many online banks. So it's worth checking the bank’s policy if this is something you plan to do frequently. International transactions may also be more difficult, or even impossible, with some direct banks.

The Absence of Their Own ATMs

Since they lack their own banking machines, online banks rely on having customers use one or more ATM networks such as those from AllPoint and Cirrus. While these systems offer access to tens of thousands of machines across the country—even around the world—it's worth checking the available machines near where you live and work.

Check, too, for any fees you may rack up for ATM use. While many direct banks offer free access to network ATMs or will refund any monthly charges you incur, there are sometimes limits on the number of free ATM transactions you can make in a given month.

More Limited Services

Some direct banks may not offer all the comprehensive financial services that traditional banks offer, such as insurance and brokerage accounts . Traditional banks sometimes offer special services to loyal customers, such as preferred rates and investment advice at no extra charge.

In addition, routine services such as notarization and bank signature guarantee are not available online. These services are required for many financial and legal transactions.

Traditional and online-only banks both have their advantages. Basically, you have to decide whether a brick-and-mortar institution's services and personal touch outweigh the often higher costs, in terms of lower interest rates and more numerous fees, of banking there.

It's also worth considering dividing your business between one of each. True, this arrangement may not be practical for you, and the fees for holding multiple accounts may be an issue. But having accounts at both a traditional bank and an online bank can facilitate the best of both worlds—higher interest rates, along with access to in-person help with transactions and problems when you need it.

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Pros and Cons of Online Banking

Online-only banks offer advantages like competitive interest rates, but consumers may miss brick-and-mortar services.

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Some online banks belong to ATM networks, but not all of them.

In its truest form, online banking means doing business with an online-only bank. This differs from conducting business with a traditional bank that offers online banking services. Find out more about how online banking works, the pros and cons of banking online and what you can do to keep your deposits safe.

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What Is Online Banking?

Unlike a traditional bank, an online-only bank doesn’t operate brick-and-mortar branches where you can seek help from tellers and other bank personnel. Instead, a customer of an online-only bank takes care of banking tasks on a website or app accessed with a computer, smartphone or tablet. These tasks can include depositing checks , transferring money and paying bills. In addition, a customer can typically use a debit card to deposit or withdraw money at an ATM or to make purchases online or in stores.

Financial products that an online-online bank might offer include checking accounts, savings accounts, certificates of deposit and loans.

Market research company J.D. Power reports that more than one-fourth of Americans (27%) use an online-only bank. A 2023 study by J.D. Power found that customer satisfaction with online-only banks is "climbing steadily," thanks to high marks for competitive interest rates and the ease of managing accounts and transferring money .

Pros of Online Banking

There is a lot to like about conducting business with an online-only bank.

Potentially Higher Interest Rates

Online-only banks normally pay higher annual percentage yields on savings accounts , CDs and and other accounts that earn interest . Gary Zimmerman, founder and CEO of cash management platform MaxMyInterest.com, explains that online-only banks are able to do this because they don't bear the costs of maintaining physical branches.

"Investors who want to safeguard their cash while earning more interest know that online banks are a smart choice," Zimmerman says.

Potentially No Fees

In some cases, only-online banks don't charge any fees . Before opening an account, investigate what fees, if any, an online-only bank imposes. In 2022 alone, U.S. banks charged a total $7.7 billion in fees just for overdraft and nonsufficient fund transactions, according to the Consumer Financial Protection Bureau.

Deposits Are Insured

The Federal Deposit Insurance Corp . insures deposits at member banks, and the National Credit Union Administration insures deposits at member credit unions. This applies to both traditional and online-only banks and credit unions, meaning an account-holder's money is protected up to a certain dollar amount.

Keep in mind that most, but not all, banks and credit unions are federally insured .

Robust Mobile Apps

Online-only banks might have mobile apps with more robust features than traditional banks' apps. For instance, an online-only bank app might include financial management tools that enable automatic savings or automatic investing.

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Cons of Online Banking

There are some downsides to banking online you should consider before opening an account.

No Branches

Online-only banks don't operate branches where you can do business. For some banking customers, that's not a problem. But others might be put off by the inability to chat face-to-face with a teller or other banking professional, or to access services that may not be available online (such as getting a cashier's check or renting a safe deposit box ).

Kate Sullivan, vice president of marketing and communications at The Cooperative Bank, notes that some traditional banks offer the same online services as online-only banks but still operate branches that you can visit or call. Sullivan's bank maintains four branches in the Boston area.

ATM Access Varies

When you're a customer of an online-only bank, you'll need to be familiar with your bank's ATM fee reimbursement policy. Some, but not all, online-only banks belong to ATM networks that offer fee-free transactions.

Not All Online Banks Are the Same

Consumers might question the banking prowess of online-only banks. Why? Because some of these banks technically aren't banks. Rather, they're financial technology companies whose banking services are backed up by a traditional bank.

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Is Online Banking Safe?

Digital banking is on the rise. A May 2022 survey by polling company Morning Consult found 52% of U.S. consumers do most of their banking online or via mobile app, whether that's with a traditional bank or an online-only bank.

Some folks riding this digital wave may be wondering whether online banking – doing business with a bank that lacks physical branches – is safe. Good news: In general, online banking is considered safe.

In most cases, deposits at online-only banks are insured just like deposits at traditional banks. Furthermore, online-only banks are regulated the same way as traditional banks. On top of that, online-only banks adopt security measures aimed at shielding your information from harm.

Fraud Protection

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Fighting Cybersecurity Threats

Even though all digital banking operations face cybersecurity threats, the ISACA professional organization for IT professionals points out that an online-only bank might be "a high-profile target for cybercriminals." That’s due in part to the banks' heavy dependence on technology.

Still, the Consumer Financial Protection Bureau emphasizes that online banking is safe as long as you follow the best practices for keeping your information secure. Here are four tips for improving the safety of online banking:

• Set up strong passwords for bank accounts and digital devices. Each hard-to-guess password should be at least eight characters, with a combination of uppercase letters, lowercase letters, numbers and symbols. Passwords should be changed regularly, perhaps every three months.
• Use multifactor authentication. Multifactor authentication requires at least two methods of verifying your identity before you can gain access to an online account or digital device. For instance, you might be prompted to type in a username and password, and then enter a temporary PIN that's sent to you via text message.
• Steer clear of public Wi-Fi. Public Wi-Fi is not as secure as the Wi-Fi at your home or workplace. Therefore, it's best to avoid online banking when you're on a public network.

Tags: money , banking , interest rates , cybersecurity , savings

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What Is Online Banking? Definition, Pros and Cons

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What is online banking?

Online banking definition: Online banking means managing your bank accounts with a computer or mobile device. This includes transferring funds, depositing checks and paying bills electronically. Online banking can sometimes be referred to as electronic banking, internet banking or web banking, or even mobile banking (though mobile banking specifically refers to banking done on a mobile device, rather than a computer).

Traditional banks and credit unions with branches typically let customers access their accounts through the internet, too. But online banks and providers offer primarily mobile access. You won’t meet a banker face to face, but with a mobile device or computer, you can reach your account anytime. Here's a closer look at online banks.

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Pros of online banks

To better understand how online banking works, consider the advantages of online banks.

Because online banks don’t have to spend money on branch maintenance, they tend to have low or no fees. Many online accounts don’t charge monthly service fees, for example, and some don’t charge overdraft fees, either.

To compare, accounts at large brick-and-mortar banks often charge a monthly service fee of around $10, though they may waive it if you meet certain requirements, such as having a $1,500 minimum daily balance. In addition, an overdraft fee at a large bank can cost $30-$35 .

» Tend to overdraw your account? See our picks for the best banks for overdrafts

Better interest rates

At online banks, deposit accounts tend to have higher annual percentage yields. The best online savings accounts, for example, have APYs around 5%. Compare that with the national average savings rate of 0.47% , and some of the largest brick-and-mortar banks, which have savings accounts that earn only 0.01% APY.

A few percentage points' difference might not sound like much, but the larger your balance, the more it matters. A balance of $10,000 deposited for a year at 0.01% will earn a dollar; at 5%, it earns just over $500.

» Use our tool: Calculate your earnings with NerdWallet’s savings calculator

Online cash management accounts are another option for earning interest. These financial products are offered by nonbank service providers, such as brokerages. They typically combine the features of checking, savings and investment accounts, and can also have good yields.

» Cash management accounts: See our top picks for these APY-earning online hybrids

Cons of online banks

Before you jump into online banking, learn more about the disadvantages of online banks.

No branches

With an online bank, prepare to have limited access to in-person help. Instead of face-to-face meetings, many banks offer phone-based customer service. Some banks offer assistance through social media and online chat, as well.

Cash can be hard to deposit

Online banks often have cumbersome cash deposit processes. You might have to find a deposit-accepting ATM. Or you may need to put money into a traditional bank account and transfer it to your online account. You could also use cash to buy a money order, and then deposit it electronically using your online bank’s mobile app.

Some providers also partner with a third-party service, such as Green Dot, to let retailers and convenience stores accept cash deposits. But these services typically charge fees of around $5 for deposits.

» MORE: How to deposit cash at an online bank

Fewer one-stop-shop options

Some online banks have outstanding savings accounts but don’t offer checking or certificates of deposit, so you might have to open one type of account at one institution and a separate type of account at another.

» CONSIDER: 4 advantages of traditional banks over online banks

Online banks' standard bank services

Though online banks typically offer higher rates and lower fees, many still have basic banking features you can expect to find at traditional banks, including:

ATM access. A good online bank will be part of an ATM network, like Allpoint or MoneyPass, with thousands of fee-free machines nationwide. If you need to withdraw cash from a non-network machine, some online banks will also reimburse any fees the ATM owner charges.

Security. Online banks with standard security measures are just as safe as traditional banks. Look for features such as encryption and fraud monitoring, and before you open a bank account, make sure the money is insured by the Federal Deposit Insurance Corp . There are also measures you can take to ensure secure online banking , including avoiding public Wi-Fi networks and keeping anti-virus software up to date.

Accessibility. You can access your bank accounts and bank services wherever there’s internet — on your computer or mobile device — around the clock. You can also reach customer service by phone — in some cases, 24 hours a day, seven days a week.

Frequently asked questions about online banking

Here are answers to common questions about online banking.

What is the meaning of online banking and how do you use online banking?

To bank online means to manage your bank accounts using your computer or mobile device. You can bank online — transfer money and pay bills electronically — through bank websites or by using a bank’s mobile app. Banks often also offer check deposits via their mobile apps.

Most standard or traditional banks offer online account management, so you can handle your banking tasks via the bank website or app. With an online-only bank, all banking tasks are handled online via the bank website or app. Some banks are app-based, so account management is handled primarily through their mobile apps.

What are the types of online banking?

You can use online banking through bank websites on your computer or mobile device, or by using mobile banking apps.

Can you open a bank account online?

You can open a bank account online for both online and brick-and-mortar banks. Online-only banks require you to open a bank account online; there’s no option to go to a branch to open an account.

» LEARN: How to open a bank account online in 4 steps

What about neobanks?

Financial technology companies that offer banking services are often called neobanks . With these providers, deposits are usually FDIC-insured through partner banks, and accounts often have the low monthly fees and strong rates that many online banks have. However, neobanks may lack traditional banking features, such as access to personal or cashier’s checks and wire transfers. They can be a solid option if you prefer online-only banking, but consider these factors and questions to ask before opening a neobank account .

Should you open an online bank account?

If you want higher rates and lower fees and don’t need frequent branch banking services, an online bank may be worth considering. Keep in mind, you can choose to open an online account without giving up an existing account at your local institution. In fact, having accounts at both a traditional bank and an online bank could give you the best of both worlds: the best savings rates and access to in-person help when you need it.

Or you could take a bigger action and move your accounts to an online-only institution (see our guide on how to switch banks ). Either way, you can open a new online account in minutes, and have access at your fingertips at any time.

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Internet Banking Effects and Results Essay

Introduction, development history, technical description/process of how it works, effects of internet banking.

Internet banking has certainly played a key role in the increase and ease of banking services the world over and the reasons for this are not difficult to discern. Online banking provides flexible opportunities for online services to customers. The highly integrated Customer Relationship Management (CRM) supported by advanced software integrates the basic financial services in demand the world over by individuals and organizations. The three central areas of organizational requirements that include operational, analytical, and collaborative are addressed. CRM and online banking systems and their benefits have generated few research studies but continue to grow and dominate the activities within the banking sector thus defining and shifting the culture in which we handle our finances. The reason I have settled on this topic is based on personal experience I had with my Dad when I was very young. To access banking services, one had to not only keep time but also make a long line behind other clients. This is the exact position we found ourselves in some fifteen years back in our attempt to access banking services. That is no more because internet banking has revolutionized the culture in the banking industry.

At the beginning of the 20 th century in the United States, demand exceeded supply and this precipitated a move by the company to change their business strategies in concentrating on selling as many products as they could afford to. In this case, companies did not pay attention to the customer and the customer’s needs and requirements. Heiko, Wayne, and Robert (1994) explain that “suppliers focused on product development, manufacturing capacity, and securing distribution outlets, without regard to their consumers”.

In the middle of the 20 th century, however, the economic situation changes, and by this time consumers had the power of choice due to excess supply which exceeded demand. Heiko, Wayne, and Robert (1994) point out that “The era of the passive consumer was coming to an end. Companies began to find out what their customers were, what they wanted, and how they could be satisfied; they analyzed data about their customers and segmented them based on their demographics, such as age, gender, and other personal information. Then they promoted their product or service to a specific subset of customers and prospects”.

This period was characterized by target marketing where each company invested much of its efforts on four P’s (price, promotion, product, and placement).In this regard, the concept of CRM and internet banking came in the late 1990s. Although there is no clear definition of CRM, Fareena and Roy (2000) define it as follows: Customer Relation Management “is about understanding the nature of the exchange between customer and supplier and managing it appropriately. With the advent of internet banking, companies changed their business emphasis in increasing the ‘share of wallet’ of their customer. They developed a close connection with their customers and took into consideration the customer needs, requirements and demands. All these were done to satisfy customer demands as well as retain them.

The emergence of CRM on the other hand made marketers carry out a comprehensive analysis of the customer. This was done with to categories customer based on long term period and retention. Moreover, this strategy contributed to cross-selling and up-selling (Greiner, 1972). In addition to the above, the dynamics of changing demographics and consumer purchasing patterns, coupled with ever stronger competition, have certainly put increased pressure on banks to adopt cutting-edge technologies to meet the growing demands of the consumer. These have impacted a lot on the banking sector globally and as such have devised new avenues for driving customer relations and developing distinct competencies that will ensure their survival. The adoption of CRM and internet banking has brought with it several benefits both to the customers and the banks. The scale of operations has improved and banking services the world over have not only been made easier but have also recorded a decline in general costs. These have impacted immensely on the culture of how we shop, procure goods, access our cash deposits, and relate with our banking services providers. One fundamental aspect of quality life is the ease by which we access both goods and services in fulfilling the constant demands in our lives. This has been made so by the rapid development of internet banking that has revolutionized our shopping culture.

Internet banking; also referred to as e-banking allows clients to carry out financial transactions on a secure site that belongs to their banking services provider. This can either be a virtual bank or a credit union. They offer safe banking solutions to their customers on the internet and have been embraced by a large number of clients the world over due to their ease and convenience in accessing banking services. Common transactions that are offered by internet banking include bill payments, wire transfers, account-to-account transfers, loan applications, and the opening of new accounts. In addition to the above, it offers non-transactional services to the clients such as online statements and lives chats with the customer relations services. Security is handled by the authentication of a single password in the form of PIN/TAN or signature-based online banking that involves the digital encryption of all transactions.

In the analysis of the world’s economy, the online banking service sector has precipitated the increase in the number of those using banking facilities and drastically changed the culture of our banking and shopping. This translates to a more vigorous banking sector that can play an important in an economy. The general population has befitted immensely from the availability of loans and capacity to provide safe custody for the deposits at the touch of a mouse. Shortly, the rate of internet banking will depend on the rate at with the customers embrace and appreciate the use of internet banking in carrying out their financial transactions and the ability to instill mote secure online banking operations that can deal with cybercrimes.

Online banking has remained a business topic that has generated much impact because of its ability to only ease the banking process but also effectively deal with the increasing demands of fast, safe, and convenient banking services. This is because it has enabled us to acquire the basic goods and services with little effort in comparison to the traditional model of buying and selling. It is therefore worth appreciating that the little things that make human lives easy impact greatly on our culture.

• Fareena, G. & Roy B. H. 2000, Consumer Preferences of Internet Services Overtime: Initial Exploration. New York: Sage.
• Greiner, L. 1972, Evolution and revolution as organizations grow. Harvard Business Review , 50 (4), 37-46.
• Heiko, L.,Wayne, J and Robert, A. 1994, Retailing and Online Consumer Information Services. Washington: OLCISs.
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Advantages and disadvantages of online banking.

Published: December 04, 2020

Updated: June 10, 2022

With most of the world operating remotely, online banking may be a huge help to your business. Learn more about the advantages and disadvantages of online banking.

Thanks to its advanced web services and mobile apps, online banking had come into the spotlight way before the pandemic. But, more than ever, business owners now rely on this technology to meet their banking needs from the safety and convenience of their homes. If you’re thinking of using an online bank for your business, it’s important to weigh its pros and cons and learn how these innovative banking features are changing the way business owners interact with their money.

In today’s fast-moving world, businesses use online banking to replace in-person visits to a branch. It offers a variety of web-based features to make financial transactions online including:

• Bill payments
• Tax payments
• Cash transfers to vendors and suppliers
• Deposits to retirement accounts (either your personal account or your company’s pension plan)
• Open new accounts
• Loan applications for business loans, credit cards or lines of credit
• The ability to deposit cheques.

Online banking can be accessed via a computer or your bank’s mobile app. All you need is a bank account, a secure password and a good internet connection, and you can access your account from anywhere, which is especially important as we are urged to stay home.

Advantages of online banking

In addition to being able to bank at any time, from anywhere, there are other advantages to banking online. You may also be able to:

Pay bills online

This might be one of the top advantages of online banking because you don’t have to take time out of your day to go to the bank. You can simply log into your account and pay your bill online right away. For increased efficiency, you may also set up automated bill payments, which helps you manage your cash flow when you have monthly payments to and from vendors.

Transfer money

You may need to do a rapid money transfer to a client or vendor, or you may need to transfer money from one account to another. Instead of sending a registered cheque and waiting for it to clear, you may securely transfer the money online.

Deposit cheques online

Rather than driving to a bank branch and waiting in line, you may be able to deposit cheques online in minutes. And because most financial institutions have an app that replicates its services from your phone, you have the ability to always bank on the go. Plus, some banks offer 24/7 customer service, so you can speak to a customer service representative at any time.

Lower your overhead fees

If your business banks online, your banking fees may be lower, as online banks may not have to pay for the cost and upkeep of branches, and those savings may be transferred to you. Plus, they may have more no-fee options that add to your savings.

Disadvantages of online banking

While online banking is always improving, there are some disadvantages for business owners reliant on immediate and constant access to their banking services.

Technology disruptions

Online banking relies on a strong internet connection. If your internet is disrupted by a power outage, server issues at your bank, or if you’re in a remote location, your ability to access your accounts might be affected. Scheduled site maintenance also means you can’t access your accounts and may have to seek an alternative.

Lack of a personal relationship

A personal relationship with your bank may be able to offer an advantage over online banking. If you need a business loan, a new line of credit, a waived fee or to make changes to your current banking needs, having that relationship can help.

In-person banking relationships can also help you craft a business account tailored to your specific needs. They can also make notes in your files about cheques, cash deposits and international payments so you can avoid extended holds on your money.

An ideal relationship would be a blend of online banking for your day-to-day transactions and a personal relationship with your banker to assist with bigger needs. That way, you have multiple options to support your business.

Privacy and security concerns

Financial institutions have very good security, but no system is foolproof. Valuable information is always prone to hacks, but you might be able to prevent this if you:

• Always use the mobile app and the website directly. You should see a small lock to the left of the search bar, which indicates the site is secure.
• Make sure you have a strong password based on a combination of numbers, symbols and letters. It’s also important to change your password regularly.
• Do not click on any links in text messages if you haven’t agreed to that method of communication.
• Use two-step authentication, which adds an extra layer of security.

Limited services

Online banking features a lot of services, but some of them still require business owners to go into banks to “wet sign” documents. This includes loan and credit applications, a large cash withdrawal or large deposits. But as online banking technology continues to evolve, you may eventually be able to electronically sign for these in the future.

These days, banks know business owners want the ease and convenience of online banking, so they’re constantly upgrading and improving their digital assets. You may take advantage of this rapidly changing banking technology and tailor an online banking system that is unique to your business needs. If you think online banking could benefit your business, talk to your bank about the time- and cost-saving advantages of going digital.

This article is intended for general informational purposes only and does not constitute legal advice or an opinion on any issue. It should not be regarded as comprehensive or a substitute for professional advice.

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Essay on Internet Banking

In this essay we will discuss about Internet Banking. After reading this essay you will learn about: 1. Meaning of Internet Banking 2. Objectives and Drivers of Internet Banking 3. Trends in India 4. Facilities Available 5. Emerging Challenges 6. Main Concerns 7. Strategies to be Adopted by Indian Banks.

• Essay on the Strategies to be Adopted by Indian Banks for Introducing Internet Banking 

Essay # 1. Meaning of Internet Banking :

With the growth of internet and wireless communication technologies, telecommunications etc. in recent years, the structure and nature of banking and financial services have gone for a sea change. Internet banking or e-banking is the latest in this series of technological wonders in the recent past which involves use of internet for delivery of banking products and services.

Even the Morgan Stanley Dean Witter Internet Research emphasised that web is more important for retail financial services than that for many other industries. Internet banking or e-banking is changing the banking and its structure and is having major effects on banking relationships.

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Banking activity is now no longer confined to the branches where a customer has to approach the branch in person, for withdrawing cash or deposit a cheque or request for a statement of Accounts.

In accessing a true internet banking, any inquiry or transaction is processed online without any reference to the branch (anywhere banking) at any time. Thus providing Internet banking is gradually becoming a “need to have” than a “nice to have” service.

The net banking is, therefore, more of a norm rather than an exception in many developed countries because it is the cheapest way of providing banking services. Under this system, online banking is possible where every bank customer is provided with a personal identification number (PIN) for making online transactions with the bank through internet connections.

Internet banking or e-banking falls into four main categories, from Level 1—minimum functionality sites that offer only access to deposit account data—to level 4 sites highly sophisticated offering, enabling integrated sales of additional products and access to other financial services—such as investment and insurance.

In other works, a successful internet banking solution offers:

1. Exceptional rates on savings, CDs and IRAs.

2. Checking Account with no monthly fee, free bill payment and rebates on ATM surcharges.

3. Credit card facilities with low rates.

4. Easy online applications for all accounts including personal loans and mortgages.

5. 24-hour account access.

6. Quality customary service with personal attention.

Essay # 2. Objectives and Drivers of Internet Banking :

The internet has developed level playing field and thereby afforded open access to customers in the global market-place. Internet banking is a cost-effective delivery channel for the modernized financial institutions.

In this system, consumers are embracing many benefits of e-banking. To have access to one’s accounts at any time and from any location through world wide web (www) is a convenient practice, which was unknown a short time ago.

Thus, a bank’s internet presence transforms from ‘brochure/ware’ status to ‘internet banking’ status once the bank goes through a technology integration effort so as to enable its customer to access information about his or her specific account details.

Following are the six primary objectives or drivers of internet banking:

1. To improve customer access.

2. To facilitate the offering of more services.

3. To increase customer loyalty.

4. To attract large number of customers.

5. To provide cost-effective services offered by competitors.

6. To reduce customer attrition.

Keeping objectives in mind, the internet banking facilities has been progressing at a rapid pace throughout the world.

Essay # 3. Trends of Internet Banking in India :

In India, initially a beginning was made in internet banking only in some big cities which was just in rudimentary stage. After getting initial success, the internet banking facility is gradually being expanded in all cities and towns to make the system popular.

The banking industry in India is also facing unprecedented competition from non-traditional banking institutions which are now a day’s offering banking and financial services over the Internet. The deregulation of the banking industry along with emergence of new technologies are enabling the new competitors in the banking sector to enter the financial services market quite efficiently and quickly.

Core or Anywhere Banking:

In order to support internet banking facilities another new concept of banking i.e., core or anywhere banking is introduced. Initially introduced by the foreign banks, the same concept in new increasingly adopted by public sector banks and also the private sector banks.

Under this concept of banking, bank customers who have an account with any select branch can easily operate his account from different designated branches on the bank spread throughout the country.

Under this system, a customer can avail cash withdrawal, cash deposit, transfer of funds, inter-city and intra-city transactions, collection of draft and cheques etc. facilities from any of such designated branches conveniently irrespective of its locations.

Core banking concept has improved the standard of the banking services with the help of modern technology. In present times, most of the public sector banks have already adopted this concept and started extending these facilities to its customers gradually by including more and more of its important branches under this category.

Progress of Internet Banking:

In India, internet banking is gradually being developed throughout the country.

As per the recent study it is observed that:

(a) A number of banks have already adopted internet banking and are offering varied kind of services through it,

(b) These internet sites generally offer only most of the basic services. Only 50 per cent are known as ‘entry level’ sites offering little more than company information’s and basic marketing materials and 10 per cent are offering ‘advanced transactions’ such as online funds transfer, transactions and cash management services etc.; and

(c) Most of the foreign and private banks in India are much advanced in terms of the number of sites and their level of development in terms of rendering advanced technology linked services to its customers. Recently, an authority of ICICI Bank observed, “Our Internet banking base has been growing at an exponential pace over the last few years. Currently around 78 per cent of the bank’s customer base is registered for Internet banking.”

Security Precautions :

In order to make their bank account safe, one should follow certain security precautions. Customer should never share personal information like PIN number, passwords etc. with anyone, including employees of the bank. It is important that documents that contain confidential information are safeguarded. PIN or password should be changed immediately and memorized before destroying the mailers.

Customers are also advised not to provide sensitive account-related information over unsecured e-mails or over the phone. He must take simple precautions like changing the ATM, PIN and online login and transaction passwords on a regular basis. It is also important to ensure that the logged in session is properly signed out.

Essay # 4. Facilities Available Under Internet Banking in India:

Following facilities are made available for customers under internet banking in India:

(i) Bill Payment Service:

Bill payment service is a utility service of internet banking. Accordingly, each bank has tie-ups with various utility companies, service providers, insurance companies across the country. Such tie-ups can facilitate online payment of bills of electricity, telephone, mobile phone, credit card, insurance premium bills etc.

In order to make online payment of bills, a simple one-time registration for each bills has to be made and a standing instruction has to be made to make online payment of recurring bills automatically. Most interestingly, the bank usually does not charge customers for such online bill payment.

(ii) Fund Transfer:

Internet banking has made provision for transfer of any amount of fund from one account to another of the same or any other bank. Accordingly, customers can send money anywhere in India. Once a customer logs in his account, he needs to mention the payee’s account number, his bank and the branch. The transfer will take place in a day or so, whereas in a traditional method it takes about three to four working days. ICICI Bank recently reported that its online bill payment and fund transfer facility have been most popular online services.

(iii) Credit Card Customers:

Internet banking provides the facility of credit card to its customers. With internet banking, customers can not only pay their credit card bills online but also gets a loan on their cards. Not just this, they can also apply for an additional card, request a credit line increase and in case the card is lost, one can report lost card online.

(iv) Railway Pass and Online Booking:

Through Internet banking facility to issue Railway pass is also available. Indian Railways has tied up with ICICI bank for this purpose and one can now make railway pass for local trains online. The pass can be delivered to the customer at his doorstep. Initially, the facility was limited to Mumbai, Thane, Nashik, Surat and Pune. The bank would just charge Rs 10 + 12.24 per cent of service tax. Moreover, online booking of e-tickets of Railways, Airlines etc. can also be made with some arrangement with banks through Internet banking.

(v) Investing through Internet Banking:

Through Internet banking, opening a fixed deposit account has become easier. A customer can now open an FD account online through funds transfer. Online banking can also be a great friend for lazy investors. Moreover, investors with interlinked de-mat account and bank account can easily trade in the stock market and the amount will be automatically debited from their respective bank accounts and the shares will be credited in their de-mat account.

Besides, some banks provide its customers the facility to purchase mutual funds directly from the online banking system. Nowadays, most leading banks offer both online banking and de-mat account facilities. However, if a customer is having his de-mat account with independent share brokers, then he needs to sign a special form, which will link his two accounts.

(vi) Recharging Prepaid Phone:

Through Internet banking, recharging of prepaid phone has also become possible. It is no longer needed to rush to the vendor to recharge prepaid phones as and when talk time runs out. Here the customer just tops-up his prepaid mobile cards by logging in to Internet banking. By just selecting operator’s name, entering mobile number and the amount of recharge, the prepared phone of the customer is again back in action within few minutes.

(vii) Shopping at Fingertips:

Internet banking provides facility of shopping at fingertips. Leading banks have tied-up with various shopping websites. With a range of all kind of products. One can shop online and the payment is also made conveniently through his account. One can also buy railway and air tickets through Internet banking.

Essay # 5. Emerging Challenges of Internet Banking in India :

In India, a large sophisticated and highly competitive Internet Banking Market is gradually being developed with market pressure and is subjected to the following emerging challenges:

1. Demand side pressure due to increasing access to low cost electronic services.

2. Emergence of open standards for banking functionally.

3. Growing customer awareness and need for transparency.

4. Global players in the fray.

5. Close integration of bank services with web based E-commerce or even disintermediation of service through direct electronic payments (E-cash).

6. More convenient international transactions due to the fact that the Internet along the general deregulation trends, eliminate geographic boundaries.

7. Move from one stop shopping to ‘Banking Portfolio’, i.e., unbundled product purchases.

The Internet and its underlying technologies have been changing and transforming not just banking but all aspects of finance and commerce. It usually represents much more than a new distribution opportunity. Internet banking will also enable nimble players to leverage their traditional brick and mortar presence for improving customer satisfaction and gain share.  

Essay # 6. Main Concerns in Internet Banking :

Internet banking in India has its areas of concern. In the mean time, a number of cases related to fraud and cheating of banks and customers by unscrupulous persons have already been lodged in India with this type of banking facilities. Irrespective of that attempts have been made by the RBI and the banking authorities for promoting safety and soundness of online and e-banking facilities in the country by issuing necessary guidelines.

In a recent survey conducted by the Online Banking Association, member institutions rated security as the most important issue of online banking. Thus there is a dual requirement to protect customers privacy and product against fraud.

Banking Securely:

Online Banking provides an overview of Internet Commerce and how one company can handle secure banking practices for its financial institution clients and their customers. Moreover, some basic information on the transmission of confidential data is presented in Security and Encryption on the web. In this respect, PC Magazine Online also offers a primer as to how encryption works.

Besides, a multi-layered security architecture comprising firewalls, filtering routers, encryption and digital certification ensures that customers account information is protected fully from un-authorised access in the following manner:

(i) Firewalls and filtering routers ensure that only the legitimate Internet users are usually allowed to access the system.

(ii) Encryption techniques used by the bank (including the sophisticated public key encryption) would ensure that privacy of data flowing between the browser and the Infinity system is protected.

(iii) Digital certification procedures provide the assurance that the data a customer receive is from the infinity system.

Essay # 7. Strategies to be Adopted by Indian Banks for Introducing Internet Banking :

In present times, Internet banking has no alternatives. Indian banking is gradually getting more and more access of Internet banking. Thus, Internet banking would drive us into an age of creative destruction due to non-physical exchange; complete transparency is also giving rise to perfectly electronic market place and customer supremacy.

At this moment, the question may be asked “what the Indian Banks should do under the present circumstances?” Whatever is the strategy chosen and options adopted, certain key parameters would largely determine the success of banks on web.

In order to attain long term success, in respect of Internet banking, a bank may follow:

(i) Adopting a webs mindset.

(ii) Catching on the first mover’s advantage.

(iii) Recognising the core competencies.

(iv) Enabling handling multiplicity with simplicity.

(v) Initiating senior management to transform the organisation from inward to outward looking.

(vi) Aligning roles and value propositions with customers segments.

(vii) Redesigning optimal channel port-folio.

(viii) Acquiring new capabilities through strategic alliances.

However, the above mentioned steps can be implemented by following four steps mentioned below:

(i) In the first phase, the customer be familiarized to new environment by demo version of software on banks, website. This will enable users to give suggestions for improvements, which can be incorporated in its later versions wherever possible.

(ii) The second phase provides various services such as account information and balances, statement of account, transaction tracking, mail box, check book issue, stop payment, financial and customized information.

(iii) The third phase may include additional multi-utility services like fund transfers, DD issue, standing instructions, opening fixed deposits and intimation of loss of ATM cards.

(iv) The final phase should include advanced corporate banking services like third party payments, utility bill payments, establishment of L/Cs, Cash Management Services etc. Enhanced plan for the customers in future may include requests for demand drafts and pay orders and many more to bring in the ultimate in banking convenience.

Thus by following the above mentioned strategies, it will help banks to translate their traditional business model into a Internet banking one, falling into the following three main categories:

(i) One-stop shop.

(ii) Virtual one stop shop.

(iii) Best of Breed Supplier.

Thus by following the above steps, the Indian bankers can pave the way for the successful introduction and popularizing the new concept of Internet banking on a large scale.

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Is Digital Banking Safe to Use in 2023? Explore the Pros and Cons!

Demystify the safety of digital banking in 2023 as you explore its pros and cons. Embark on a journey into the realm of online financial services and uncover the robust security measures that safeguard your transactions and personal information.

Read more posts by this author.

As per Statista's recent predictions, engagement with online banking is expected to follow an upward trajectory from 2021 to 2024. 2020 witnessed a staggering 805 million active online banking users globally, projected to crest at approximately 1 billion by 2024.

Reflecting on the monetary aspect, the digital banking market, valued at roughly $47.4 billion in 2021, is forecasted to skyrocket to a colossal $2.05 trillion by 2030.

A pioneer of this transformation, the banking and financial sectors began adopting digital strategies as far back as the 1990s. Traditional brick-and-mortar banks, recognizing the convenience and efficiency digital technology offered, swiftly transitioned to online platforms, a move that proved to be a resounding success and catalyzed other banks to follow suit.

However, while offering many advantages, online banking also has its share of drawbacks.

In this blog post, we will focus on questions such as: what exactly are the advantages and disadvantages that consumers experience in digital banking? And how has the advent of digital banking revolutionized the financial landscape? Join us as we delve into this fascinating topic!

What Are the Pros and Cons of Digital Banking?

Digital banking demonstrates the most significant transformations in the banking industry. Conventionally, many established banks and FIs were not proactive in embracing a comprehensive online banking product suite as the digital transformation took time and labor with risks of data loss.

Because of the recent technological advancements in the financial sector, many financial establishments are adopting digital banking. Here are some of the significant benefits and risks of embracing digital banking in today's world:

Pros of Digital Banking

• Adaptability

Digital-only financial institutions and banks are more highly adaptable than conventional banks. These digital banks are startups letting them become more agile than major banks with thousands of employees. Consequently, these banks can incorporate features long before conventional banks start.

• 24/7 access to banking services

This is the most significant benefit of digital banking. You can get round-the-clock access to your bank account with a digital bank. You will never need to wait for long working hours to deposit your funds and obtain an account statement, transfer funds, and modify your account details. The best part is that you can access your bank anytime and anywhere.

• Digital banking solutions for business

While signing up for digital banking, you may conveniently regulate all your finances online. It's the right strategy for people who work for longer times and have to travel long distances to deposit cash in a bank branch.

Recent research by Statista shows that 73% of UK inhabitants actively use online banking. Most polled people said they prefer to regulate their cash using their smartphones.

Therefore, using digital banking to handle your money means you don't have to wait in long queues. You can access your accounts anytime and anywhere.

• Seamless online experience

Bain and Company has conducted a survey showing that digital banking providers are better than brick-and-mortar banks in areas that highly matter to customers. It includes the simplicity, speed of transactions, and quality of banking experience.

Some Limitations of Digital Banking

• Internal restrictions

A cultural revolution is necessary for both the financial industry and staff if banking needs to be entirely digitized. But it's great to know that banks have a distinct way of departmentalization, which significantly affects the technology level.

A computerized financial system will help certain divisions, forcing some departments to make workforce reductions. Training for staff members might also be necessary.

• Issues related to security breaches and identity theft

Smartphone apps and online banking platforms must be secure as banks install novel safety measures. Nevertheless, not every system is entirely safe, and hijacked accounts may result in security breaches and identity theft because of stolen login credentials.

Even though you use a smartphone or digital banking with utmost confidence, be wary of using insecure networks. Moreover, you must not change passwords too frequently and protect your login credentials.

• Depositing cash could be a challenge

Checks are simple to deposit from your phone with online banks, but money can be a little more challenging.

For instance, you might need to locate an ATM that accepts deposits. Alternatively, you might have to deposit into a regular bank account and then into your online account. You might alternatively use cash to purchase and instantly deposit a money order through the mobile app of your online bank.

• Lack of human interaction

Apart from the convenience of digital banking, the lack of human interaction is the biggest con. Despite giving consumers fast, round-the-clock access to their accounts, digital banking sometimes lacks the private touch of in-person contact with bank employees.

Customers sometimes require assistance to receive the help or guidance they need. Customers who are older and may not feel comfortable utilizing computers or mobile devices will notice this disadvantage more.

Impact of Digital Banking on Financial Inclusion

Wondering how digital banking has transformed the financial landscape? The banking or financial industries are facing technological modifications by introducing novel financial products provided digitally from both banking and non-banking sectors.

McKinsey reported that digital finance is "financial services provided via mobile phones, cards, and internet." Moreover, digital financial inclusion is the utilization of financial services by excluded and underserved members of the population.

The full impact and future possibilities of digital financial services are advances that won't be known until they've been put into practice. According to Hanning, the director of the Association for Financial Inclusion, "The widespread use of online finance will have an important effect not only on the accessibility of financial services but also comprehensive economic expansion."

Furthermore, online banking can give 1.6 billion people in emerging markets the opportunity to utilize financial services based on their research on seven nations: Brazil, The People's Republic of China, Ethiopia, Mexico, Nigeria, India, and Pakistan.

The widespread adoption of digital finance can potentially boost developing nations' GDPs by 6%, or $3.7 trillion, by 2025— a growth comparable to Germany's economic growth .

The interaction between people and their funds and institutions has radically changed due to the advancement of technology in banking. It provides a variety of advantages, including ease, 24/7 possession of your money, automated payments, reduced expenses, excellent interest rates, and improved banking service.

It's nevertheless necessary to be mindful of its disadvantages, such as security risks, the potential for technological difficulties to lock you out of your account, and the propensity for spending the funds on items you hadn't planned for.

Most individuals will discover that the advantages exceed the disadvantages. However, remember to take the necessary precautions to protect your money to make the most of digital banking.

Explore here Why Digital Banking is Growing at Lightning Speed: A Complete Guide on Financial Industry's Revolution

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Essay – Digital Banking – Pros & Cons | Descriptive Paper Writing for Mains

Hello and welcome to  exampundit . Here are the winners of EP’s Descriptive Contest Part 2. The topic “Digital Banking Essay – Pros & Cons” is topped by Pallavi and the runner-up is Pruthvi Ghanta.

Digital Banking Essay – Pros & Cons by Pallavi (Winner)

The drastic digitalization over the past few years has indeed affected almost every sphere of our lives. One of the most recent effects has been the move towards a cashless economy in India. Starting with the note ban in November 2016 due to the sudden withdrawal of the notes of Rs.500 and Rs.1000 denominations from the economy overnight, the Indian economy is going cashless.

In other words, least paper transactions will be involved, substituted by more digital transactions with the help of internet banking, digital wallets, Point-of-Sale machines, credit and debit cards, etc. These are having multiple implications on the economy with the following advantages and disadvantages.

ADVANTAGES:

• A cashless economy will allow less tension of tackling a wallet full of notes along with us, which is not at all safe in a world full of anti-socials. We can rather use our mobile as a one-stop solution for all kinds of transactions such as bill payments, fees payments, funds transfer, recharge, etc.
• It will ensure a ‘black-money free India’ or rather the so-called ‘parallel economy’ where people collect money in their closets at home without coming under the purview of tax .
• Crime rates have already started diminishing due to cash ban as most of the terrorist activities are funded with black money that has bore the brunt of this. In addition to this, other crimes such as burglary, extortion, bank robbery, etc. are also declining.
• One of the biggest advantages is the increase in the span of the income tax. Due to least involvement of cash, transactions have to be done through banks where proper KYC verifications will be done prior to banking transactions and hence, it will be easier for the Government to monitor and mend the income tax evasion by the unscrupulous persons. This will, in turn, enhance the revenue received by the Government.

Above all, the cashless economy will lead to the most convenient and secure economy for all.

DISADVANTAGES:

Apart from the brighter side of the digital economy , there are also some darker side associated with it as explained below :

• The cashless economy will see a hike in the hacking of the personal information over the internet such as credit and debit card numbers, PINs, passwords and other sensitive information due to an increase of digital transactions. In short, cyber crimes will escalate like anything if proper internet security measures are not taken.
• The poor section of India who is in majority and is scarcely covered under conventional banking system will suffer a lot, as they are solely dependent on cash for their daily wages.
• Sectors such as real estate, retail, restaurants, cement and other MSMEs, where huge cash transactions are involved are going to be affected terribly.
• Inadequate internet facility, low internet speeds, limited smartphone and broadband penetration, very less PoS machines are the roadblocks towards achieving full digitalization that is here the main substitute for cash transactions.

In short, a cashless economy can only be possible with sufficient infrastructure and planning that are required for supporting an economy like India.

Digital Economy – Pros & Cons by Pruthvi Ghanta

The term digital economy was first coined by Don Tapscott in his book “ The Digital Economy : Promise and Peril in the age of Networked Intelligence.

Few decades ago India faced severe problem , Nearly half of our country’s population didn’t have any form of identification, later Aadhar Cards provided digital identity to our people. Likewise now India is facing another problem of tax evasion and black money. So to curb these pitfalls Finance Minister Arun Jaitley in his Budget 2017-18 speech promoted digital economy with a string of measures to make e-transactions easier. Also Ratal.P.Watal who headed the committee on Digital Payments termed “ Digital payments are to finance what the wheel is to transport.”

Indian government is spending huge money for schemes to make people use digital currency like Digi Dhan Melas, schemes like Lucky Grahak Yojana, Digi Dhan Vyapar Yojana, No cash transaction above 3 lakh rupees, referral and cash back schemes to use BHIM app,etc., Government decided to remove all the duties on point of sale machines to promote digital transactions which is a part of govt’s target of 2500 crore transactions in 2017-18. Also banks have targeted to introduce additional 10 lakh PoS terminals by March 2017.

This is a good business opportunity for new companies like payments banks, Digital economy increases India’s tax base so that this amount can be utilised for more developmental activities. The cost benefit ratio is high using digital currency as there is no printing, manual security, life duration to the currency.

But in other aspects there are  several problems using digital economy , the first and foremost one is security from hackers as many confidential passwords are stored online there is high probability that hackers may steal one’s personal information.  In addition to this operational costs are high as the services offered charges as per your transactions like gateway fee, transaction fee etc. Another biggest problem vests with the illiterate as majority of Indians are living in rural and are illiterates, as they don’t know how to use these and they even don’t believe all this stuff.

So, by increasing banking penetration towards the masses, Decreasing the costs of Point of sale terminal, ensuring high security features to the digital economy may paves way to a New India.

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Bottom line: The Cash App Banking Card has no fees or minimum balance requirements. You can also earn up to 4.50% APY on Cash App Savings if you meet certain requirements. Cash App is probably not the right choice if you want access to a full-service bank, though. One of the top picks from our best banks guide may be more suitable if you want a more traditional banking experience.

What is Cash App Banking?

Cash App is a financial app with several features, including instant money transfers, a debit card and high-yield savings account , and investing tools. The primary banking services Cash App offers are its Cash App Card, a debit card that pulls money from your Cash App balance, and Cash App Savings, a savings account separate from your Cash App balance.

Cash App Savings lets you earn up to 4.50% APY if you meet certain requirements, and it lets you transfer money into your Cash App balance whenever you want for your Cash App Card to use.

Cash App Key Features

Direct deposit and instant transfers.

Cash App offers early direct deposit , so you'll be able to get your paycheck up to two days early. Having regular direct deposits of at least $300 per month will provide perks for both accounts, as well.

For your Cash App balance, you'll become eligible for free overdraft protection, allowing you to overdraw your account by up to $50. The best banks for overdrafts have similar overdraft protection but higher limits. You'll also get ATM fees reimbursed. For Cash App Savings, having a direct deposit of $300 each month will let you earn up to 4.50% APY, as long as you also have a Cash App Card.

Of course, what Cash App is most well-known for is its instant transfers. With Cash App, you can send money to other app users without fees. You can also transfer money to your bank account for free using ACH payments , but that takes a few days. Instantly transferring money from your Cash App balance to your bank account costs from 0.5% to 1.75% of the money you're transferring, with a minimum of $0.25.

No Monthly Fees on Basic Services

Cash App doesn't charge monthly fees to keep your card active or your account open. It also doesn't charge overdraft fees or require a minimum balance for either account, although Cash App Savings comes with a small $1 minimum opening deposit.

Ability to Buy, Sell, and Hold Stocks and Bitcoin

Cash App also doubles as an investment app . You can buy, sell, and hold stocks through its app, although it should be noted that playing the stock market is not covered by FDIC insurance, like the Cash App Card and Cash App Savings account are.

You can also purchase and send Bitcoin using Cash App. It will also let you automatically convert your part of your paycheck into Bitcoin.

Cash App Pros and Cons

Benefits of using cash app banking, ease of sending and receiving money.

You can make some instant money transfers with Cash App, for free. Transfers from one Cash App balance to another Cash App balance won't come with any additional fees, and the app makes these transfers easy to do, no matter where you are.

Cash App also lets you move money from your Cash App Savings to your Cash App balance instantly, as many times as you want. That means you can get Cash App Savings' up to 4.50% APY while still being able to use that money for purchases.

Integrated Investment Platform

Cash App offers more investing options than you would generally find on mobile banking apps. You can invest small amounts in stocks with Cash App through a brokerage account, along with ETFs. This brokerage account holds the stocks and ETFs you buy, and the money you get from selling these stocks and ETFs goes directly into your cash app balance, which you can spend with your Cash App Card.

You can also use Cash App to make Bitcoin transactions, and you can choose to have parts of your direct deposit be automatically converted to Bitcoin.

Customizable Debit Card

The Cash App Card is a prepaid debit card that comes with many customizable benefits. The card is visually customizable; you can design your own Cash App Card, picking its color and material and drawing your own designs on it.

One of the biggest benefits of Cash App's customizable debit card are in the discounts you can earn, called "offers." At any time, you can go into the Discover tab of Cash App and choose a new discount, called an "offer," to apply to your card. When you use your card at the offer's listed location, you'll get the discount automatically. If this sound interesting to you, you might also be interested in getting a cash-back debit card .

Cash App Potential Drawbacks

Limitations on customer service channels.

Cash App doesn't offer 24/7 customer service the way that many banks do, and it doesn't have as many ways to contact customer support as banks either. While Cash App has a chat service on the app and has a phone line you can call, it doesn't have a customer support email you can reach out to. And you won't be able to go in-person to talk to someone, either, since Cash App is an app and not a brick-and-mortar bank.

Fees for Instant Transfers and Certain ATM Withdrawals

Cash App charges fees for out-of-network ATM withdrawals if you don't have a $300 direct deposit set up for your account. It also has a percentage-based charge for instant transfers from your Cash App balance to your bank. Finally, Cash App charges you a flat fee for cash deposits with participating retailers. If you know you're going to use ATMs frequently, there are banks that avoid ATM fees you might be more interested in.

About Cash App

Cash App is a mobile payment app, not a bank. It is partnered with financial institutions, though. If you have a Cash App card, your Cash App account balance is FDIC -insured for up to $250,000 per depositor through Wells Fargo Bank.

Cash App is best known for letting users transfer money to each other, but the company also offers the Cash Card through its banking platform. It's a debit card you can use anywhere Visa is accepted. Cash App also allows you to deposit cash at retail locations, direct deposit your paycheck, and withdraw money at ATMs. But there are some notable differences from your standard debit card — it's easier to set up, there are fewer fees.

Cash App also has a savings account with a high interest rate; you can earn up to 4.50% APY if you meet certain requirements.

Cash App customer support is available by phone from 9 a.m. to 7 p.m. ET every day. You can also reach out to customer representatives through live chat on the app. 

Cash App is rated 4.6 out of 5 stars in the Google Play store and 4.8 out of 5 stars in the Apple store.

How Cash App Stands Out

Cash App lets you easily use the funds in your Cash App balance and Cash App Savings to invest in stocks and bitcoin. You can use Cash App's Round Up feature to round up any Cash App Card purchases to the nearest dollar, investing the extra money into your choice of stock, ETF , or Bitcoin.

You can also participate in both digital banking and Bitcoin transactions on Cash App. It lets you convert a portion of any direct deposit into Bitcoin automatically, if you're hoping to build up your Bitcoin supply.

Cash App Fees and Charges

While most of Cash App's banking services are free, there are some things that Cash App charges fees for. It charges $2.50 for out-of-network ATM use, in addition to the fees the ATM itself might charge. If you direct deposit $300 into your Cash App, you can get those fees waived.

In addition, Cash App charges a percentage of the money you're transferring for instant balance transfers to your bank account. And it charges you $1 every time you go to an affiliated store to deposit cash into your account.

Cash App User Experience and Accessibility

Since Cash App is an app, it has many of the same strengths and drawbacks that the best online banks have. On the plus side, you can access Cash App anytime you want from your phone, so Cash App is equally accessible from your home as when you're travelling. Unfortunately, this also means that Cash App has no in-person branches, so if you like banking in-person, you're out of luck.

Since Cash App doesn't have any physical locations, you'll notice that Cash App is generally less expensive if you're comparing Cash App fees to traditional banks' fees.

Cash App Banking FAQs

How does cash app banking compare to traditional banks.

Cash App is a financial app, so it doesn't offer as many services as traditional banks, nor does it have physical branches. However, it also offers fewer fees and more investment services than you'll usually find at brick-and-mortar banks.

Can I use Cash App for direct deposit?

Yes, Cash App lets you receive direct deposits.

Are there any fees I should be aware of with Cash App Banking?

Cash App charges fees for instant transfers to your bank account and using ATMs outside of Cash App's ATM network.

What investment options does Cash App offer?

Cash app customers can buy, sell, and hold stocks through Cash App Investing, as well as perform transactions with Bitcoin.

Is Cash App safe for banking and investment?

Your Cash App account balance is FDIC-insured through Wells Fargo for up to $250,000 per depositor. Cash App also uses data encryption and fraud detection to protect your financial information.

Cash App Banking Review

Cash app card review.

The Cash App Cash Card is a strong debit card with no minimum deposit or monthly fees, making it more accessible than some more traditional checking accounts . Creating an account takes a few seconds, and once you sign up for a card, you can get instant access via Google Pay or Apple Pay.

The Cash Card also offers in-app integrations like Round Ups and instant discounts. With a few clicks, you can enable Round Ups, which automatically rounds up your purchases to the nearest dollar. You can put the extra money in your Cash App savings account or purchase Bitcoin.

Cardholders can also utilize offers for instant discounts at checkout. Cash App provides offers for various retailers, including coffee shops, retailers, and restaurants. Once you activate the offer within the app, you can use it when you pay.

Cash App Savings

Cash App Savings may be a good option if you're eligible to earn the highest rate. To earn interest on savings, you must be at least 18 years old, have a Cash App personal account, and have a Cash App Card.

The savings account offers a base yield of 1.50% APY if you have a Cash App Card. You'll need to set up monthly direct deposits of $300 or more into Cash App to earn 4.50% APY.

Cash App Savings also helps you contribute money to savings goals . To create a savings goal, you'll set a goal amount and add an emoji that represents your goal.

How Cash App Banking Compares

Cash App Banking vs. Chime Banking

Like Cash App, Chime aims to remove barriers that prevent customers from opening accounts. You don't need to undergo a credit check or banking history review. You also won't pay fees or have minimum account balance requirements, which is similar to the Cash Card.

Cash App and Chime also both have savings accounts. You're choice between Cash App and Chime could hinge on which savings account is a better fit. Cash App Savings offers 1.50% APY once you have a Cash App Card. You can increase interest to 4.50% APY if you set up monthly direct deposits of $300 or more into Cash App. Meanwhile, Chime Savings pays 2.00% APY. There aren't monthly requirements to earn the savings rate.

Chime Banking Review

Cash App Banking vs. Capital One 360 Banking

Capital One is an online bank with various account options, including the 360 Checking Account and 360 Performance Savings Account.

Capital One 360 Checking offers the typical features associated with top banks — no fees, no minimum deposit, overdraft protection, and a user-friendly app. You have to pay a $2 fee for using an out-of-network ATM, which is nearly the same as Cash App's fee. Capital One offers a discount program with the Capital One Shopping browser. However, the in-app Cash Card discounts provide a more seamless customer experience.

For savings accounts, the best option for you may ultimately depend on whether you qualify for the highest APY on Cash App Savings. Cash App Savings pays 4.50% APY if you receive monthly direct deposits of $300 or more per month into Cash App. (Otherwise, you'll earn a base yield of 1.50% APY.) Capital One 360 Performance Savings pays 4.25% (as of 4/11/24) APY, and you won't need to meet any requirements to earn interest.

Capital One 360 Bank Review

Why You Should Trust Us: How We Reviewed Cash App Banking

We used Personal Finance Insider's bank account rating methodology to review the Cash Card and Cash App Savings.

To create a rating for the Cash Card, we looked at customer service, the mobile app, ethics, and fees. Each category received a rating between 0 and 5, and our ratings factor in how the Cash Card compares to similar accounts. We then averaged those numbers to create a final score.

For the savings account, we looked at customer service, the mobile app, ethics, the interest rate, and fees. We also used a 0 to 5 rating scale for each category and averaged the numbers to determine the final score.

If you enjoyed this story, be sure to follow Business Insider on Microsoft Start.

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Regions Riding Forward® Scholarship Contest

Their Story. Your Voice.

Your voice is your own. But it's also been impacted by others. Who, we wonder, has inspired you? Let us know by entering the Regions Riding Forward Scholarship Contest. 

You could win an $8,000 college scholarship

For the opportunity to win an $8,000 scholarship, submit a video or written essay about an individual you know personally (who lives in your community) who has inspired you and helped you build the confidence you need to achieve your goals.

The details

The 2024 Regions Riding Forward Scholarship Contest consists of four (4) separate Quarterly Contests - one for each calendar quarter of 2024. Regions is awarding four $8,000 scholarships through each Quarterly Contest.

Each Quarterly Contest has its own separate entry period, as provided in the chart below.

The entry deadline for each Quarterly Contest is 11:59:59 PM Central Time on the applicable Quarterly Contest period end date (set forth in the chart above).

No purchase or banking relationship required.

Regions believes in supporting the students whose passion and actions every day will continue to make stories worth sharing. That’s why we have awarded over $1 million in total scholarships to high school and college students.

How to enter, 1. complete an online quarterly contest application.

Enter the Regions Riding Forward Scholarship Contest by completing a Quarterly Contest application.  The second Quarterly Contest runs from April 1, 2024 through June 30, 2024. Complete and save all requested information. 

2. Prepare your Written Essay or Video Essay

For each Quarterly Contest, the topic of your Written Essay or Video Essay (your “Essay Topic”) must be an individual you know personally, who lives in your community. Your Written Essay or Video Essay must address how the individual you have selected as your Essay Topic has inspired you and helped you build the confidence you need to achieve your goals.

Written Essay and Video Essay submissions must meet all of the requirements described in the contest Official Rules. Your Written Essay or Video Essay must be (i) in English, (ii) your own original work, created solely by you (and without the use of any means of artificial intelligence (“AI”)), and (iii) the exclusive property of you alone.

Written Essays must be 500 words or less. You can write your Written Essay directly in the application, or you can copy and paste it into the appropriate area in the application form.

Video Essay submissions must be directly uploaded to the contest application site. Video Essays must be no more than 3 minutes in length and no larger than 1 GB. Only the following file formats are accepted: MP4, MPG, MOV, AVI, and WMV. Video Essays must not contain music of any kind nor display any illegal, explicit, or inappropriate material, and Video Essays must not be password protected or require a log-in/sign-in to view. You must upload your Video Essay to the application, and you may not submit your Video Essay in DVD or other physical form. (Video Essays submitted via mail will not be reviewed or returned.)

Tips to Record Quality Videos on a Smartphone:

• Don’t shoot vertical video. Computer monitors have landscape-oriented displays, so shoot your video horizontally.
• Use a tripod. Even small movements can make a big difference when editing.
• Don’t use zoom. If you need to get a close shot of the subject, move closer as zooming can cause pixilation.
• Use natural lighting. Smartphone lighting can wash out your video.

3. Review and submit your Quarterly Contest application

Review your information on your Quarterly Application (and check the spelling of a Written Essay) and submit your entry by 11:59:59 p.m. Central Time on the applicable Quarterly Contest period end date. The second Quarterly Contest period end date is June 30, 2024.

4. Await notification

Winning entries are selected by an independent panel of judges who are not affiliated with Regions. If your entry is selected as a Quarterly Contest winner, you will need to respond to ISTS with the required information.

Eligibility

For purposes of this contest:

• The “Eligible States” are defined as the following states: Alabama, Arkansas, Florida, Georgia, Iowa, Illinois, Indiana, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, Tennessee and Texas.
• An “accredited college” is defined as a nonprofit, two- or four-year college or university located within one of the fifty (50) United States or the District of Columbia.

To be eligible to enter this contest and to win an award in a Quarterly Contest, at the time of entry, you must:

• Be a legal U.S. resident of one of the Eligible States.
• Be age 16 or older.
• Have at least one (1) year (or at least 18 semester hours) remaining before college graduation.
• If you are not yet in college, begin your freshman year of college no later than the start of the 2025 – 2026 college academic school year.
• As of your most recent school enrollment period, have a cumulative grade point average of at least 2.0 in school (and if no GPA is provided at school, be in “good standing” or the equivalent thereof in school).

View Official Rules

NO PURCHASE OR BANKING RELATIONSHIP REQUIRED. PURCHASE OR BANKING RELATIONSHIP WILL NOT INCREASE YOUR CHANCES OF WINNING. VOID WHERE PROHIBITED. The 2024 Regions Riding Forward Scholarship Contest (the “Contest”) consists of four (4) separate quarterly contests (each a “Quarterly Contest”): (1) the “Q-1 Contest;” (2) the “Q-2 Contest;” (3) the “Q-3 Contest;” and (4) the “Q-4 Contest.” The Q-1 Contest begins on 02/01/24 and ends on 03/31/24; the Q-2 Contest begins on 04/01/24 and ends on 06/30/24; the Q-3 Contest begins on 07/01/24 and ends on 09/30/24; and the Q-4 Contest begins on 10/01/24 and ends on 12/31/24. (For each Quarterly Contest, entries must be submitted and received by 11:59:59 PM CT on the applicable Quarterly Contest period end date.) To enter and participate in a particular Quarterly Contest, at the time of entry, you must: (a) be a legal U.S. resident of one of the Eligible States; (b) be 16 years of age or older; (c) have at least one (1) year (or at least 18 semester hours) remaining before college graduation; (d) (if you are not yet in college) begin your freshman year of college no later than the start of the 2025 – 2026 college academic school year; and (e) as of your most recent school enrollment period, have a cumulative grade point average of at least 2.0 in school (and if no grade point average is provided at school, be in “good standing” or the equivalent thereof in school). (For purposes of Contest, the “Eligible States” are defined as the states of AL, AR, FL, GA, IA, IL, IN, KY, LA, MS, MO, NC, SC, TN and TX.) Visit regions.com/ridingforward for complete Contest details, including eligibility and Written Essay and Video Essay requirements and Official Rules. (Limit one (1) entry per person, per Quarterly Contest.) For each Quarterly Contest, eligible entries will be grouped according to form of entry (Written Essay or Video Essay) and judged by a panel of independent, qualified judges. A total of four (4) Quarterly Contest Prizes will be awarded in each Quarterly Contest, consisting of two (2) Quarterly Contest Prizes for the Written Essay Entry Group and two (2) Quarterly Contest Prizes for the Video Essay Entry Group. Each Quarterly Contest Prize consists of a check in the amount of $8,000 made out to winner’s designated accredited college. (Limit one (1) Quarterly Contest Prize per person; a contestant is permitted to win only one (1) Quarterly Contest Prize through the Contest.) Sponsor: Regions Bank, 1900 Fifth Ave. N., Birmingham, AL 35203.

© 2024 Regions Bank. All rights reserved. Member FDIC. Equal Housing Lender. Regions and the Regions logo are registered trademarks of Regions Bank. The LifeGreen color is a trademark of Regions Bank.

2023 Winners

High school:.

• Amyrrean Acoff
• Leon Aldridge
• Kharis Andrews
• Colton Collier
• Indya Griffin
• Christopher Hak
• Aquil Hayes
• Jayden Haynes
• McKenna Jodoin
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• Karrington Manley
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• Lauryn Tanner
• Joshua Wilson
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• Lauren Boxx
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• Thurston Brown
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• Tsehai de Souza
• Anjel Echols
• Samarion Flowers
• Trinity Griffin
• Kristina Hilton
• Ryan Jensen
• Miracle Jones
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• Chelby Melvin
• Lamiya Ousley
• Kiera Phillips
• Gabrielle Pippins
• Ethan Snead
• Sydney Springs
• Kirsten Tilford
• Tamira Weeks
• Justin Williams

2022 Winners

• Paul Aucremann
• William Booker
• Robyn Cunningham
• Kani'ya Davis
• Oluwatomi Dugbo
• Lillian Goins
• Parker Hall
• Collin Hatfield
• Gabrielle Izu
• Kylie Lauderdale
• Jacob Milan
• Jackson Mitchell
• Carmen Moore
• Madison Morgan
• Kaden Oquelí-White
• Kaylin Parks
• Brian Perryman
• De'Marco Riggins
• Brianna Roundtree
• Sydney Russell
• Carlie Spore
• Morgan Standifer
• Ionia Thomas
• Ramaya Thomas
• Jaylen Toran
• Amani Veals
• Taylor Williams
• Alana Wilson
• Taryn Wilson
• Aryaunna Armstrong
• Hannah Blackwell
• T'Aneka Bowers
• Naomi Bradley
• Arianna Cannon
• Taylor Cline
• Catherine Cummings
• Margaret Fitzgerald
• Chloe Franklin
• Camryn Gaines
• Thomas Greer
• Kayla Helleson
• Veronica Holmes
• Logan Kurtz
• Samuel Lambert
• Jaylon Muchison
• Teresa Odom
• Andrew Payne
• Carey Price
• Emily SantiAnna
• Curtis Smith
• Jered Smith
• Mariah Standifer
• Maura Taylor
• Anna Wilkes

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IRS Tax Tip 2024-32, April 11, 2024

Direct deposit is the best way to receive a tax refund. The IRS encourages taxpayers to file by the April 15 federal tax deadline and choose direct deposit to receive any refund they may be owed.

Benefits of direct deposit

• It's fast. The fastest way for taxpayers to get their refund is to file electronically and choose direct deposit. Taxpayers who file a paper return can also choose direct deposit, but it will take longer to process the return and get a refund.
• It's secure. Since refunds are electronically deposited, there's no risk of having a paper check stolen or lost in the mail.
• It's easy. Taxpayers can simply follow the instructions when selecting direct deposit as a refund method and enter their account information as directed. Taxpayers can find their routing and account numbers on their online banking page, banking statements or a personal check.
• It provides options. Taxpayers can split a refund into several financial accounts. These include checking, savings, health savings and certain retirement accounts. They should use IRS Form 8888, Allocation of Refund, Including Savings Bond Purchases , to deposit a refund in up to three accounts. This form can’t be used to designate part of a refund to pay tax preparers.

Taxpayers should deposit refunds into U.S. bank accounts in their own name, their spouse's name or both. They should avoid making a deposit into accounts owned by others. Some banks require both spouses' names on the account to deposit a tax refund from a joint return. Taxpayers should check with their bank for direct deposit rules.

Get a bank account

Taxpayers who don't have a bank account can visit the FDIC website for information on banks that let them open an account online and how to choose the right account. Veterans can use the Veterans Benefits Banking Program for access to financial services at participating banks.

Mobile apps may be an option

Some mobile apps and prepaid debit cards allow for direct deposit of tax refunds. They must have routing and account numbers associated with them that can be entered on a tax return. Taxpayers should check with the mobile app provider or financial institution to confirm which numbers to use.

Taxpayers must have their routing and account numbers for direct deposit available when they are ready to file. The IRS can't accept this information after a return is filed.

There is a limit of three direct deposit refunds a year made into a single financial account or prepaid debit card.

More information:

• Publication 17, Your Federal Income Tax (For Individuals)

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Guest Essay

You Don’t Just See a Total Solar Eclipse. You Feel It Completely.

By Ryan Milligan

Dr. Milligan is a senior lecturer in astrophysics at Queen’s University in Belfast, Northern Ireland.

Almost one year ago, in the middle of the night, I drove from my hometown, Belfast, Northern Ireland, to Dublin to catch an early morning flight to Munich. From there I caught another plane to Bangkok, another to Singapore and yet another to Perth in Western Australia. There, I rented a camper van and began a drive of more than 750 miles north to the town of Exmouth on a remote peninsula on the northwest coast of the continent.

This was the only reasonably accessible location on the planet with decent weather prospects from which to view the total solar eclipse on April 20, 2023. The entire event lasted 62 seconds. It was the 10th total solar eclipse I’d traveled to witness.

Even as a professional solar physicist, I find it difficult to convey why eclipse chasers like me go to such extraordinary lengths to witness such a fleeting phenomenon, again and again. I was extra determined to make the pilgrimage last year after I was thwarted by clouds in Chile in December 2020, and I couldn’t afford the eye-watering cost of traveling to Antarctica in 2021. I needed to whet my appetite before embarking on another expedition to see the totality of the April 8 eclipse in Mazatlán, Mexico.

It may sound absurd, but there is no other celestial event that anyone I know would devote so much time and effort to seeing. If you wish to see the northern lights, you can hop on a plane to Iceland or Norway and have a fairly decent chance of seeing them in the winter months. If you are on the nightside of the planet during a lunar eclipse and the skies are clear, you just need to go outside and look up to see it happening. But unless you are fortunate enough to live within or close to the path of totality, witnessing a total solar eclipse will probably require meticulous planning and marshaling time and money to get you to an optimal location and a bit of luck to make sure the weather forecasts you’ve pored over hold true.

Believe me, it is worth the effort.

A total solar eclipse is not something that you see — it’s something that you experience. You can feel the temperature around you begin to drop by as much as 15 degrees over the five to 10 minutes that lead up to the eclipse. The birds and other animals go silent. The light becomes eerie and morphs into a dusky, muted twilight, and you begin to see stark, misplaced shadows abound. A column of darkness in the sky hurtles toward you at over 1,000 miles per hour as the moon’s shadow falls neatly over the sun, turning day into temporary night — nothing like the calming sunset we take for granted every day. Sometimes, a few stars or planets begin to appear faintly in the sky as your eyes get used to the new darkness.

The hairs stand up on the back of your neck and the adrenaline kicks in as your brain tries to make sense of what is going on. But it cannot. It has no other point of reference to compare these sensations to. A total eclipse elicits a unique, visceral, primeval feeling that cannot be evoked by a photograph or a video or a newspaper article, and that can be experienced only within the path of totality when the moon completely obscures the disk of the sun.

And then of course there is the crowning glory: the sun’s corona, the pearly white outer atmosphere of our nearest star that we can otherwise see only using a fleet of dedicated solar-observing spacecraft. It has an ethereal beauty that is challenging to articulate.

For those brief few moments when the corona appears bright in the sky, all the effort made to experience the totality becomes worth it. You want to soak up every second of it and process every feeling, because it is over all too soon. Once the moon’s shadow has passed you feel both exhilarated and deflated because the next opportunity to experience this sensation again could be years away and on the other side of the world. And it is something that you will crave.

There is also, of course, the professional motivation for me to gaze upon the subject of my research with my own eyes. Most other astrophysicists only get to look at exploding stars or distant comets through gargantuan telescopes, where they appear as mere pixels on a computer screen or a squiggle on a graph. It’s easy to get detached from the beauty of astronomy when your job becomes more focused on securing grant funding, teaching, administrative duties and bureaucracy. Eclipse chasing reminds me why I chose this field of work in the first place and reignites my passion — and I want to inspire my students with that same passion.

Each eclipse is different. The shape and structure of the solar corona varies over the course of each solar cycle. The longer the duration of the eclipse, the darker one’s surroundings are likely to seem. And sandwiched between the sun’s “surface” and the corona is the crimson red chromosphere, the layer of the sun’s atmosphere that I have been researching for almost 20 years to understand its relationship to solar flares. In Australia the briefness of totality meant that this region was exceptionally bright and distinguished, and one could even spot some solar prominences (clouds of hydrogen gas suspended above the chromosphere) with the naked eye. That may also be the case on Monday.

People mistakenly think that a partial eclipse is good enough. It is not. When outside the path of totality, the visibility of even 1 percent of the sun’s disk is enough to outshine the entire corona. The buzz around this year’s eclipse through North America has reached a fever pitch not seen since the “Great American Eclipse” of 2017. The duration of totality will be almost twice as long — almost four and a half minutes. (Whether the weather will cooperate is still an open question .)

This is far from the first time I’ve tried to cajole people into experiencing the totality in full. In 2017, I persuaded several of my friends in the United States to join me in Nebraska to enjoy the spectacle without forcing them to traipse halfway across the globe. They later told me that they at first thought I may have been somewhat exaggerating the experience because of my professional bias, but when the eclipse was over, I knew that they finally got it. Their faces were overcome with emotion and they struggled to articulate how they were feeling. Because it wasn’t just about what they had seen — it was about what they had experienced.

Ryan Milligan is a solar physicist at Queen’s University in Belfast, Northern Ireland. He has held research fellowships at NASA and the Science and Technology Facilities Council in Britain and was affiliated with NASA’s Goddard Space Flight Center for over a decade.

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