Here's What Happens When You Use Your Bank's Bill Pay Feature

We all have bills to pay, but it's not always easy to pay all of them. Some companies charge processing fees when you use their online bill payment systems. When you pay extra fees like this, you waste money. One way to avoid additional fees when paying your bills is to use your bank's online bill pay tool. Many banks include this helpful feature on their websites and mobile apps. Here's what you need to know about using your bank's bill pay feature.

You can pay your bills through your bank

When you send bill payments out in the mail, you'll need to not only include a check for payment, but also cover the cost of a postage stamp. Those costs can add up if you regularly pay several bills by snail mail. But there are other ways to pay your bills for free.

One way is using the online bill payment feature provided by your bank. Many banks offer free bill payment tools to customers. By using this feature, you can save yourself money. This service provides a convenient way to schedule and stay on top of your bills.

What to expect when you use your bank's bill pay tool

If your bank offers bill payment tools, you may want to give it a try.

Here's what you'll need to do to pay a bill this way:

1. Log in to your online bank account.
2. Locate the bill payment tool.
3. Add a new payee.
4. Enter the details for the payee.
5. Select the payment amount.
6. Schedule your payment.

Once you schedule a payment, you're all set. Your bank will send the payment on your behalf and deduct money from your checking account on your chosen date to cover the cost.

This service offers a simple way to pay your bills electronically. If you regularly use your bank's mobile app or website, you may want to see if online bill pay features are available.

Five reasons to pay bills through your bank

Still not sure if your bank's bill payment solution is right for you?

Here are five reasons you may want to use this service:

1. Avoid extra fees: Some companies charge additional processing fees when you pay bills through their online portals. Using your bank's online bill pay feature is a good idea if you're on a tight budget and want to avoid unnecessary extra fees.
2. Save money on checks: While you may occasionally need paper checks, they're becoming less necessary as more payment solutions are available. Paper checks cost money, so you can keep more money in your wallet by using online bill pay tools.
3. Fewer fears of delayed or lost mail: Unfortunately, mail can get lost or delayed. If you want to minimize the potential for lost or delayed mail, you may want to consider using your bank's online bill pay service.
4. Stay organized: When you schedule payments through your bank, it's easier to stay organized. You'll be able to track your scheduled, pending, and paid payments, which could help you keep better financial records.
5. Save time: Finally, this bill pay feature can help you save time. Life gets busy, and this solution offers an easy way to schedule your bills so they're always paid on time. Convenient electronic financial solutions like this can improve your life.

Learning new money management skills can allow you to improve your financial situation. Check out our personal finance resources for more information about essential money topics.