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Joan
Desktop software is something you install on your local hard drive.
On-line software is something you ACCESS through a web browser. It MIGHT download temporary applets to run on your computer, but those get deleted when you exit the program.
Both can often do the same thing.
Nicholas
Here is a chart with desktop and online software compared side by side.
Online financial software actually has many advantages over desktop software. But, if storing your data on an online provider’s server makes you nervous, then desktop is the way to go as long as you take the appropriate measures to secure your data (back up, anti-virus and firewall software).
Luis
I believe online software allows you to use the program without installing it on your desktop. I prefer a hybrid of them both.
Software that’s installed on your desktop with the files and information securely stored there, but allowing access to the web to update you’re online banking and maintain an up to date budget. I think maintaining a good budget is probably the most important personal finance basic you should be focusing on.