Capital G Bank customers will now be able to transfer their funds online thanks to the Butterfield Bank.

The Direct Online Banking service gives Capital G customers a more cost effective and convenient way of banking.

The project was started in March following several months of discussion between the two banks and was officially launched on August 28.

The interface between Butterfield Bank and Capital G now provides all residents with the ability to conduct e-banking transactions with all the major institutions in Bermuda.

Capital G customers may pay their loans, credit cards and transfer funds in the comfort of their own home, securely on capGonline.com, one business day after they have transferred their funds via Butterfield Direct.

"We are committed to making Internet Banking increasingly more convenient and rewarding for our customers," said Richard Doughty, chief operating officer of Capital G.

"With the introduction of this new capability, customers may now transfer funds via Butterfield Direct to their Capital G savings and Capital Gain accounts for a very low cost, which is currently 25 cents per transaction."

He added: "This new transfer capability for Capital G is an important development in the expansion of our Online Banking facility and continued evolution of our banking infrastructure to ensure we consistently provide our customers with multiple transactional channels and superior customer service."

CapGonline.com is the only online banking service available in Bermuda that provides free local bank to bank transfers. Other features of the system include email and cell phone alerts, multi-authentication security, bill pay and international wire transfers.

To register, residents can visit the Welcome Desk at Capital G and complete a registration form, present a valid driver's licence or passport and proof of address to get online within 48 hours.