Source: news.com.au

Step 1 - Know your rights

Online banking is covered by the Electronic Funds Transfer Code of Conduct (EFT Code). The EFT Code was last updated in November 2008 and covers, among other things, telephone and internet banking. The Code sets out your responsibilities, privacy issues and what happens when things go wrong. You can view a copy of the EFT Code at ASIC’s website: asic.gov.au.

Step 2 - Know what you’re looking for

Do you want an account that links to all your other accounts? Do you need to be able to access the account via an ATM or bank branch as well? Are you looking purely for a transaction account or are you wanting to earn high interest?

As a general rule of thumb, look for transaction accounts that offer BPay, external transfer and direct debit facilities.

Look for a savings account that doesn’t have a minimum (or has a very low) account balance. Make sure you can get instant access to your savings account funds if you want it.

Step 3 - Compare what is available

Online banking is becoming increasingly popular, so there are a huge number of online bank accounts available in the market place. You first port of call should be your current bank, to see what they have on offer. And to compare accounts through the marketplace give canstar.com.au a try.  

Step 4 - Read the fine print

As always when you open a bank account you should read the fine print to ensure that the interest paid and the fees charged will be what you are expecting.  

Make sure you can earn a high interest rate on your savings account no matter what the balance with no catches or conditions. Ask how the interest is calculated - interest calculated daily and paid monthly is the industry standard.

Make sure you aren’t paying account or transaction fees on savings accounts. Many online accounts are fee free.

Step 5 - Protect yourself online

While online banking has many benefits, you need to ensure that you keep your details safe and secure to help prevent fraud. Some safety basics include ensuring that your computer has an up-to-date anti-virus program and avoiding “pop-up” screens when you are banking online. When logging in to internet banking, always type the website address manually rather than clicking on a link, and when you have finished ensure that you manually log out and close your internet browser. Also ensure that you change your password regularly and avoid using passwords that could easily be guessed.

Also ask your bank of choice about their online security arrangements. For further tips read the “Transacting Online” information at ASIC’s consumer website - Fido.gov.au.