Logging online can cut down on the leg work

Can logging on to a computer ever be a substitute for face-to-face contact? Some 155,000 customers of AIB's online personal banking service believe it can. Last month, figures released by the bank show these customers collectively made more than 1.1 million online visits, a 48 per cent increase on the same period last year.

AIB internet customers used the service an average of seven times last month, generating more than 300,000 payments and 1.3 million online statements of bank and credit card accounts.

But connecting to the internet can save time and money on a greater range of personal finance transactions than just simple daily banking: queue-phobic, tech-savvy consumers can pay their tax; buy health, motor and travel insurance; get loan approval; track their mortgage; check their pension fund; and even make a will by going online.

Consumers who fail to be swayed by internet shopping sites sometimes say that pointing and clicking just isn't the same as physically browsing supermarket shelves or soaking up the atmosphere of book and record shops.

But very few people enjoy taking a number and a seat at their local tax office, and they don't have to. By registering with the revenue online service at www.ros.ie, self-assessed taxpayers can pay and file electronically. In 2002, 10,200 people, including 2,500 tax practitioners, who registered with the service received a three-week extension on the deadline to make a tax return.

Buying general insurance over the internet enables consumers to avoid those mind-numbing phone calls spent listening to a pre-recorded voice intone "if you want to a quote for motor insurance, please press one", then pressing one and waiting on hold for 20 minutes for a human being to take your personal details and feed them into the computer.

On sites such as www.123.ie, consumers can feed in their personal details and receive an automated quote for motor insurance via email. Best of all, the email tells consumers which companies were searched for the most competitive quote. If it appears that any companies have been excluded, consumers can make one-off phone calls to double check they're not missing out on the cheapest deals, but they won't have to scour the entire market.

Managing your personal finances online can pay off in the form of low-premium deals on travel insurance, through sites such as www.getcover.com. For people who are not members of group schemes, there is a 10 per cent discount available to people who purchase health insurance online from www.bupa.ie or www.vhihealthe.com.

Meanwhile, online brokers www.myadviser.ie and www.labrokers.ie provide information on various investment and life assurance products while sometimes offering discounted rates of commission for execution-only business.

Discounts on loan interest are also available on motor loans applied for through Bank of Ireland's Banking 365 service, either online or over the telephone. Someone who walks into a branch and asks for a motor loan worth €7,000 will be charged interest of 9.6 per cent. The same customer will pay just 8.5 per cent in interest if they apply online or by telephone.

Instant loan approval is a popular feature of AIB's internet banking service, according to Mr David Roberts, senior manager for AIB e-business and payments. However, the bank does not offer any similar discounts on the loan interest payable by online customers.

"The proposition there is that you can get it done quickly without going into the bank," says Mr Roberts. However, he notes that electronic transactions are cheaper than paper-based ones: 20 cents compared with 30 cents.

The two major financial transactions most people make in their lives are their mortgage and their pension. Investing in either requires detailed and tailored financial advice of some description, be it from a tied agent or, preferably, an authorised independent broker. But there are still ways to play around with your mortgage and your pension online that could help you cut the balance on the former and boost the balance on the latter.

At www.primafinance.ie, for example, consumers can investigate current interest rates on different mortgage products and work out what their monthly repayments would be. At www.simplymortgages.ie, homeowners can calculate the effect overpayments will have on the term and cost of their mortgage.

Pensions calculators are also available online through sites such as www.invesco.ie, which enable people to see just how much their current contributions fall short of their target pension.

Members of group pension schemes whose funds are managed by a company called Finance Matters can find out how much their pension is worth, change their premiums and even re-direct where the premiums are invested through a site called www.pensionsunplugged.com.

"If you wake up at three o'clock in the morning thinking about your pension, you can find out how much it's worth. It's better than having to wait two or three weeks for a statement that's out of date," says Mr Mark Corcoran, a consultant at Finance Matters.

The site is not designed to frighten people, Mr Corcoran says. Nevertheless, employees whose employers have signed up to the service make a higher number of additional voluntary contributions to their pension than they do under traditional systems, he notes.

Online services make it easier for people to organise financial matters they might otherwise prefer to keep permanently on their list of "things to do" rather than actually doing them.

Making a will is one example. At www.wills.ie, you can print off a selection of wills, ensure they are properly signed and witnessed, then deposit them for safekeeping: all without having to approach a solicitor.

A standard will where everything is left to one person is free through the site: other types of trust wills cost between €80 and €200.

For complicated estates, personal wills can be purchased for €500. In this instance, a lawyer from the firm running the site will contact the person making the will.

"If you're talking about a family business and particular tax advice was needed, it might not be prudent to just use our online services," admits Prof Brian Carroll, who runs the site.

Not everybody knows when they need advice and, if you're face to face with a solicitor, he or she might hit on any areas that need special consideration, he says. However, using an online service is a convenient way to make most types of will, he adds, and the site also includes information on how to make the will.

All online businesses run the risk of consumers simply using them as a public service rather than as a commercial enterprise, simply consulting the frequently asked questions page before leaving to go on to the next site or down to their broker's office, armed with knowledge.

Consumers happier to just consult the internet rather than enter their credit card details can ask questions on personal finance topics at www.askaboutmoney.com, check their consumer rights at www.odca.ie, download Government publications at www.revenue.ie and www.welfare.ie or read about legal rights and statutory entitlements in a "plain English" style at www.oasis.gov.ie.