If you pay your bills via check or take time each month to visit each company's website to make your payment, it is time to sign up for online bill pay. Most major banks offer online bill pay as a free service to their customers. Check out a few reasons you need to sign up your bank's online bill pay as soon as possible.
1. You Can Reduce the Amount of Time You Spend Paying Bills
Using online bill pay to pay your monthly bills can help you reduce the amount of time you spend on this task. Take a few minutes to set up the bills that you want to pay; to expedite the process, have the company's mailing address for payments, phone number, and your account number on hand. The information is then saved for future payments.
Once you have each company set up, the only thing you'll need to do each month is enter the amount of your payment and click the right button to send the payment. Instead of visiting multiple websites, taking time to pay bills in person, or mailing your payments, you'll only have to visit your bank's website.
2. Some Companies Permit Electronic Payments
Your bank makes your bill payments using two different methods. If the company you are paying does not accept electronic payments, it will mail a paper check to their payment address. However, if the company accepts electronic online bill payments, your bank will send the payment electronically.
The process for sending electronic payments is quicker than that for sending paper checks. You can also expect the payment to clear your bank account quicker, making it easier for you to reconcile your account.
3. You Can Set Reminders to Pay Irregular Bills
It's easy to forget about bills that you don't pay on a monthly basis, like your car insurance, real estate taxes, propane bill, and annual membership dues. Fortunately, you can use online bill pay to set a reminder that the bill is due. This will help you from incurring expensive later fees.
4. Online Bill Pay Lets You Pay Anyone
Another benefit of online bill pay is that you can use it to pay anyone that you owe money to, including individuals. You just need to have a mailing address for the person that you need to pay. For example, assume that your sister used her credit card to book your family's annual vacation and you intend to split the cost evenly.
To repay her, just enter her information into the online bill pay system and make the payment. She'll receive the payment in the mail, and she can deposit the check to her bank account.