Archive for the 'Internet Banking' Category

Internet Banking with Virtual Banks

There are two ways to do internet banking.  Banking online through a website set up by a traditional bank does not seem to be too much of a stretch for many people.  However, virtual banks are taking internet banking to a whole different level.

A virtual bank is a bank that has no physical structure where you can go to conduct business.  It has no branches convenient to you.  You simply do all your transactions through the internet banking.

If you have a problem, you cannot go to your local branch and complain to the manager.  Instead, you have to contact representatives of your virtual bank online.  Sometimes, you can take care of these internet banking tasks over the telephone.  If you like to deal with problems face to face, though, virtual banks are not for you.

A virtual bank does not have automatic teller machines.  It usually charges you fees to use other banks’ ATM’s.  There are some virtual banks that will reimburse you for ATM fees.  This is an important thing to consider when you are comparing internet banking.

Internet Banking Savings Accounts

Internet banking savings accounts are being used more every year by people across the country and around the globe.  They offer a better alternative to traditional savings accounts.  People who use internet banking savings have good reasons to do so.

If you opt for a traditional savings account instead of an internet banking account, you will get a very low interest rate.  In fact, you will not make enough on your money to cover the cost of inflation.  Savings in traditional banks are generally around 1% annually.

This low interest rate barely makes it worth your effort to save.  You will be better off to buy things at today’s prices.  That way, when money is worth less, you will not have your money sitting in a traditional account where it will then buy less than it can now.  Internet banking provides an alternative to this situation.

Internet Banking Research

Much research was done on internet banking even before it was started.  The research continues to this day, with more and more participants involved.  As people use internet banking more, it gives researchers more reasons and subjects to study.

One study showed the devastation of identity theft on individuals.  They had trouble getting jobs, loans, and insurance, for example.  They could not conduct business in a bank, not even internet banking.  Some ended up in very difficult positions.

The study suggested that banks, including internet banking institutions, would do well to proclaim themselves as the champions of identity protection.  This would help them by limiting their losses.  Besides this, they could charge a fee for the service.

Another study evaluated how people felt about the security of their internet banking transactions.  78% of them stated that they would like some kind of verification of their identities to be carried out at certain times.  This, they thought, should be done at the moment that unusual transactions were being done on their internet banking accounts.

Internet Banking and Privacy Policies

Privacy policy legislation affects internet banking just as it does any other type of banking establishment.   You might want to keep your personal information private.  If so, it is good to know how your bank treats privacy policy.

A study was done to determine how well different banks, including internet banking companies, dealt with privacy policy.  All financial institutions should have privacy policies that are consumer friendly.  This is in keeping with the spirit of the law.

The law in question is the Gramm-Leach-Blily Act, or GLB, as it is often called.  This was enacted by Congress in July of 2001.  It gives power to financial institutions to conduct business in many important ways.

More importantly to consumers, there is a section devoted to the privacy of banking customers, including internet banking customers.  Banks must provide consumers with a copy of their privacy policy.  This explains how your personal information will be used by internet banking operations and other banks.

Internet Banking and Investing

Internet banking investing is ideal for those who have a little more than is needed for a small savings account.  Although internet banking savings accounts do better than traditional accounts, investment accounts have much more potential.

The first thing to remember, though, is that internet banking investment accounts are not FDIC insured.  You are taking a risk to put your money in such accounts.  Yet, the possibility for financial gain is so much greater that, for most people in a position to do it, it is well worth the gamble.

In fact, knowing how much risk you can tolerate is crucial in knowing how to plan your internet banking investing theme.  You need to determine how much of your holdings you will put into high risk ventures like certain stocks.  You also need to figure out how much you want to balance that with lower risk vehicles like bonds.

This balance is part of your internet banking investment process.  You cannot put all your money in one form of investment without making a very unwise decision, in almost every case.

Internet Banking

Perhaps you have decided that internet banking is for you.  Now, you have to get set up so that you can start using online services.  Depending on which kind of Internet Company you are going to use, there are different ways to start using internet banking.

If you want to register for internet banking with your bricks and mortar bank, or “clicks to bricks” as it is called, you will find the process simple.  You can call the bank and ask to register for their online banking services.

They will send you the information you need.  You will receive an instruction sheet in the mail.  It will explain how to log on to the internet banking website.  It will also give you a unique username.  Usually, this username will not change.

The letter will also advise you on security issues with internet banking. It will explain requirements, such as that you have 128-bit encryption on your computer.  It will tell you how to enter your username on the bank’s website.  It might counsel you to type in the bank’s URL carefully to avoid phony websites that are set up to get your information.

Internet Banking Fraud

Internet banking, like any other business arena, is susceptible to fraud.  Phonies abound in every type of business, and this is no different.  Yet, there are some ways you can prevent being taken.

One kind of fraud is done on fake bank sites.  These are look-alike sites that imitate your internet banking website.  They sometimes pop up when you type in a slight misspelling of your bank’s web address.

If you are not paying attention, you can type in your username and password before you realize you are not connected to your own bank at all.  You should always type in the bank’s web address carefully to prevent this from happening.  Most banks have names that are simple to remember, so this should not take too much effort.

Another type of fraud is “phishing.” This is the use of emails to lure you onto a fake bank website to steal your information.  You might open the email and find a request for information from “your bank.”  A link will be provided to you.

Internet Banking

If you keep a large balance in your internet banking account, it may be easy for you to keep it in good standing.  However, if you are like many people, you might be running on a tight budget.  If so, you will need to be careful about how you handle your account.

One of the most important things you can do is to confirm that any deposits that should go into your account are credited.  They must, of course be in the internet banking account before you can draw them out.  If you are paying bills with them, they need to be in place.

If you have direct deposit, you may become slack about checking to see if the money is in your account.  This is a bad habit to get into for a couple of reasons.

First, there could be a banking error on the part of your internet banking firm or on the part of the sending bank.

online bill payment

Internet banking can make paying bills a quick, easy task.  Once you set it up, it can be done automatically, if you choose to make it that way.  Or, you can pay each bill individually.  Either way, you be more accurate and save time as well.

Some internet banking companies allow you to do online bill paying for free.  You usually have to have a “qualifying account,” but the rules for those vary.  You can also get free online bill paying if you carry a large balance in your internet banking account.

For some banks that amount is $1000, for others, it is $5000.  Otherwise, you will have to pay a fee, which will be well under $10 per month for a certain number of bills paid and an additional fee for extra bills.  This additional fee is usually under $0.50 per bill.

To sign up for automatic bill pay through internet banking, start at your bank’s website.  There should be a tab marked “bill pay” or something similar.  Click on that and you can enroll in their bill paying services.

Internet Banking Security

Internet banking companies are working hard to make their servers as secure as possible.  They work with experts in the field of security.  They hire computer-hacking consultants to show them the vulnerabilities of their systems.  There are also things you can do.

The bank will suggest, if not require, that your browser have 128-bit encryption.  This just insures that your information will be safe as it leaves your computer just as it is when it is on the bank’s secure server.  If you do not have the latest version of your browser, you may not have 128-bit encryption.  Make sure you have it before you begin.

Your username will either be given to you by your clicks to bricks bank, or you will choose it at your virtual bank.  If you choose it, there will be specific rules about how many characters it must have.  It will also tell you whether you must use both letters and numbers, and capitals and lower case letters.  Choose something that is not guessable.