Expand online banking services with personal finance software

The Internet has become part of our everyday life, so it makes sense to move our financial transactions online. Nowadays, most banks offer their customers the option for online banking. This service is available seven days a week, 24 hours a day.

The beauty of online banking is that you can manage your money more easily. Even better, you can earn a very competitive return. The reason is simple: by doing your transactions online, you are saving money to the bank. In turn, it will be reflected in a higher annual percentage yield you can get.

Internet banking provides lots of valuable services. You can pay a bill, transfer funds, schedule payments in advance, manage several accounts in one place, increase your overdraft, order a cheque book or apply for a credit card.

Many people appreciate online banking for the opportunity to integrate the data with personal finance software - specialized computer programs that provide useful tools for complete financial management.

Personal finance programs are used to keep a close watch on your money. They complement online banking services and fill the gaps where the system falls short. For example, you can't download or scan important financial documents and create a permanent digital archive.

The most popular personal finance programs are Quicken and Microsoft Money. They give answers to key spending and saving questions. You can do much of your work offline, and then connect to the Internet to complete the bank transactions. All your banking information can be integrated with other personal finance data using a single program.

What new options and services can you use?

• Consolidate your account information in one place. Personal finance programs let users download account information from banks, credit card issuers, brokerage houses, IRA, and 401(k) accounts. This feature can be scheduled to run at any time so the information is up to date when needed.
• Import an image directly from a scanner, save the front and backs of your checks and store multiple electronic images.
• Save important statements, checks and other tax-related financial records long after they are removed from a bank's website.
• View coming due dates and forecast future balances. You can be sure that you have enough funds to cover upcoming expenses.
• View improved spending charts that show where your hard-earned money goes.
• Keep historical data such as cancelled checks, receipts, bills, warranties, and other important documents. They can be scanned or cut-and-pasted directly into a personal finance program.
• Receive detailed insight into your spending habits and cash flow.
• Retirement planning.
• Store all of your existing financial institutions' PINs and passwords. You can have immediate access to all of your accounts from one place and with just one password.
• Categorize downloaded transactions and watch key spending areas like dining out, clothing and entertainment.
• Rename cryptic payee names to remove store codes and other unnecessary transaction data.

Keep in mind that many financial institutions charge fees for online banking accessed through Quicken or Microsoft Money software. Prices for this service may vary. For example, Bank of America charges $9.95 a month for online banking through Quicken and Microsoft Money. The first three months are free.