The number of users switching their on-site banking accounts over to online banking is growing by the thousands each year. When surveyed, those without online banking accounts cite safety concerns as a top reason why they dont want to change over. If youre thinking about opening an online banking account or simply transitioning your existing account to an Internet-accessible format, you should be familiar with the basic security measures in place to protect your income:
1. Password-protected login. The most basic form of protection is using an authentic bank website that requests a username and password when you try to enter your account. To ensure that youre using a safe website, you should always go directly to the banks homepage by typing the address into your Web browser; links from third-party sites and sometimes even bookmarks cant always be trusted. You can also choose not to save your passwords or log-in information so that anyone on your computer cant just access your records. Dont worry; when you type your password, internal systems automatically encrypt the information to keep it protected from hackers. Try choosing a password thats easy for you to remember, but is longer than seven characters and contains both letters and numbers.
2. Security questions. As a backup method, banks often provide a secondary round of security questions that require users to satisfactorily answer facts about you that someone who isnt personally connected to you wouldnt know. For example, if someone tries to log into your account multiple times by guessing passwords or is using an IP address that the bank doesnt recognize, they may encounter this secondary round of questioning – even if they somehow have your password. Sample questions include your mothers maiden name or the street name of the house where you grew up.
3. Using an FDIC-protected bank. The Federal Deposit Insurance Corporation (FDIC) protects credible banks by insuring clients account contents up to $250,000. That means that even if the bank proves untrustworthy or something illegal happens with your money, you can recover your total loss; and yes, that goes for online banking. You can find a complete list of approved banks and financial institutions at the FDIC website.
Remember, the responsibility of safely managing your money – whether through on-site or online banking – mainly falls directly on your shoulders. Be careful about whom you trust with access to your account; even financial consultants or institutions are capable of giving you bad advice or mismanaging your money. Remember that you always have the right to shop around, ask questions and ask for everything in writing. For a trustworthy online bank or advisor, alleviating your doubts and proving reliability should be no issue.
TM Murphy is a professional writer who lives in NYC. She currently specializes in fashion, beauty, marketing and finance articles. For easy-to-understand financial and banking advice to use on topics such as online banking, she often turns to http://www.discoverbank.com. TM Murphy has been writing full-time since 2006, when she graduated with a B.A. in English from Northeastern University.
