Online banking 'good for those on a budget'

Online banking is an excellent facility for people trying to stick to a budget in the current economic climate, it has been suggested.

Michelle Meyer, spokesperson for the Association of Payment Clearing Services (Apacs), said that the move towards more people using the service was inevitable as online shopping increases.

"I think what it will do is give people an exact picture of where they stand which is always a good thing if you are trying to manage your budget. Seeing what is going in and coming out puts you in a good place," she commented.

Apacs research published recently showed that over half of all internet users now bank online, an increase of 505 per cent from the figures seen in 2000.

However, some 20,000 phishing scams - where fraudsters attempt to gain personal information through fake emails - were reported for the first half of 2008, suggesting than online bankers should exercise caution.

In 2007, total losses for online banking fraud were £22.6 million, a decrease of 33 per cent from 2006, when they totalled £33.5 million.

Meanwhile, statistics from the British Retail Consortium and KPMG show that British consumers now spend more than three days per year shopping online, making it more popular than listening to the radio and downloading music.