Still depositing your weekly paycheck at the bank down the street and licking envelopes to send out your monthly bills? Nothing wrong with that, except it's time to get over those hang-ups you've had about banking online, because it has sort of become the Netflix of the banking world. You can save money and avoid annoying fees. Online banking also makes it easier to shop for better rates and incentives that earn you cash.
If you do make the switch, take comfort in knowing you'll simply be joining the growing crowd. Over 50 million households in the country now do their banking online, including more than 10 million that bank exclusively online, according to the Online Banking Report. And most online banks, just like the bank down the street, are insured by the Federal Deposit Insurance Corp. They'll have the information on their site, so never assume and always check to make sure.
Concerned about identity theft? You should be. But here's the rub: A recent study by Javelin Strategy & Research found that banking online may actually be safer: After all, it's much easier for identity thieves to steal in formation from discarded bank statements in your trash than to hack into your computer, which may be why 68 percent of identity theft occurs offline, not online.
Reward yourself: Checking accounts that pay higher interest rates than certificates of deposit and online savings accounts? Yes, they exist. Community banks and online banks have begun offering high-yield reward accounts as a way to compete with larger institutions. These accounts, many with interest rates above 4 percent, offer premium rates for customers who bank online and do not require traditional branch banking.
The Community Bank, based in Brockton, is offering a 5.01 percent annual percentage yield on balances up to $25,000 if you meet three requirements: Open the account with a direct deposit, use your debit card at least 15 times a month, and receive statements electronically. Community Bank refunds ATM charges imposed by other banks if you meet these conditions, according to Kati Kelley, the bank's vice president of marketing. The minimum deposit to open is $50. The account is available to consumers throughout New England and people can sign up online. Other high-yield reward accounts can be found at www.highyieldcheckingdeals.com/#Massachusetts.
Going once, going twice: You're so worth it, banks are willing to bid for your business. At MoneyAisle.com, customers select whether they want a CD or high-yield savings, the amount they wish to invest, and if it's a CD, the maturity date. Then, using sophisticated software, MoneyAisle hosts a live auction among banks from across the country. Within minutes, MoneyAisle captures the highest rate offered by these banks and repeats the process to see if other banks will beat it. During my own auction for a $10,000 high-yield savings account, 68 banks submitted 138 bids during 12 rounds. First Trade Union Bank offered a 3.25 percent rate, well above national and state averages. All of the banks in the network are FDIC insured and are screened further by using an independent bank rating agency.
Save the planet, and get paid too: Citizens Financial Group recently unveiled an incentive program - Green$ense rewards - that actually pays customers cash for making electronic banking payment transactions. Green$ense rewards customers with 10 cents for each electronic payment, up to $10 per month and $120 per year. Unlike other incentive programs, Green$ense deposits cash directly into a customer's checking account on a monthly basis. Customers enrolled in Green$ense earn money for debit card purchases, online bill payments, and recurring payments.
Avoid fees: Bounce a check and you'll pay roughly $28.95. That's about 2.5 percent higher than last year, according to Bankrate.com. With online banking, there is no excuse for it anymore. Customers can check their accounts as often as they want. Many financial institutions allow people to set up e-mail alerts when funds go below a certain threshold, making it easier to avoid those pesky fees for insufficient funds.
Stamp out the stamps: Sure, stamps cost only 42 cents. But that can quickly add up when you're paying monthly bills for your mortgage, phone, cable, credit cards, electric, gas, car, car insurance, student loans, and other expenses. These days, most banks offer free online bill paying, which transfers money electronically from your account to the company you want to pay. At a minimum, if you have 10 bills a month, you'll save nearly $50 a year on stamps. That doesn't include money saved from using fewer envelopes and ordering fewer checks.
Jenn Abelson can be reached at abelson@globe.com. 
