Online checking is a service provide by banks that allows users to maintain a checking account and conduct banking transactions on the Internet, according to FindRates.com. Specific services for online checking accounts vary among different banks, but common factors are paper-free checking and online account maintenance.
While online checking is frequently associated with exclusively online banks, many traditional brick-and-mortar banks also offer the service, as reported by About.com. With an online checking account, a person can often pay bills, make online purchases, fill out electronic paperwork and make direct or mobile deposits. Some banks provide ATM or debit cards linked to online checking accounts for making purchases in traditional stores.
Banks that offer online checking often offer lower or no fees because there is less cost in maintaining an online institution, as stated by NerdWallet. Online banks also generally offer 24-hour transactions and customer services. Online banks can be insured by the FDIC in the same manner as traditional banks to provide security to account holders.