Bank of America is working with California-based Palm Computing to provide its customers with instant account information over the "palm pilot," a computerized hand-held organizer that’s steadily growing in popularity.

The service, which may come out as early as this summer, would initially offer checking and savings account information, which would be updated daily. But B of A is also planning to introduce interactive banking, including a way to buy and sell securities via the personal organizer, according to Nick Berner, Internet alliances manager at Palm Computing. He estimated that the "next step of interactive banking" might be available in early 2010.

B of A hopes the new service will both pull in more high-net-worth customers and show that the bank is on the "cutting edge" when it comes to financial technology, according to sources.

"(Using a palm pilot) is a lot better than lugging a laptop around or some kind of quirky paging device," he said. "They are already something that people are used to carrying around."

The new service will use a wireless modem and be released with Palm Computing’s next organizer, Palm 7, due out in summer. The on-line brokerage company E*Trade is also working with Palm Computing. This summer, it plans to provide regularly-updated stock quotes and some transactional capabilities.

Berner added B of A is hoping to attract more affluent customers. "They won’t necessarily be able to do as many things on-line as they can with their personal computer," he said, "but the bank is providing one additional way for this customer segment to do their banking."

The service will not permit customers to browse the Web. Instead, it will provide so-called "Web clipping," in which owners of the Palm 7 will be able to "lock into" any Web site that has contracted to provide its Internet service through Palm Computing.

The cost of the Palm 7 will be between $600 and $800, according to Berner. Currently, it is possible, but very difficult, to add wireless Web access to old "palm pilot" models. "It used to be a matter of mind-numbing complexity," Berner said. "You would have to buy a separate modem and find some way of integrating the Web sites. In contrast, with Palm 7 you open the device and a few minutes later you can access the content that the providers have made available."

Berner said many other banks have expressed interest in working with Palm Computing. "I think once Bank of America comes out with it, almost every other large bank will feel they need to keep up."

Octavio Marenzi, director of electronic delivery services at Meridien Research in Boston, said B of A will also benefit by showing that it is on the "cutting edge" when it comes to new banking technology. "A lot of it is a marketing gimmick," he said.