On-line banking

Online banking is a service provided by many banks, thrifts, and credit unions that allows you to conduct banking transactions over the Internet.

Online baning offers may include;

* Access to accounts round-the-clock, even on weekends
* View of balances
* Check clearances
* The ability to ransfer funds between accounts
* The ability to download information directly into personal finance software
* The ability to receive and pay bills on-line (without check writing, envelopes, or stamps)

Sometimes choosing an "Internet-only" bank, no longer gives you access to a local "bricks-and-mortar" bank.

When choosing an on-line banking service, use the same good business sense you would in any transaction. Do your research and make sure that the on-line bank has a good reputation before you provide personal information or send money. Also, when purchasing banking products or services online, read agreements carefully before clicking your consent to them or signing the agreements electronically. The time is well spent since you may be legally bound by those agreements. It is also wise to save or print a copy of the agreement for future reference.

The Internet is a convenient place to find bargains in banking products and services. You can often view rates for savings accounts, credit cards, loans, and other financial products and services. Some Web sites also help you directly compare financial products online.

Be certain that the Federal Deposit Insurance Corporation ("FDIC") insures your bank's deposits. Most on-line banks include information on their deposit insurance on their Web pages. You can find a list of FDIC-insured banks on the FDIC Web site.
Also, if you use a bank that is not licensed in the United States, your deposits may not be insured by the FDIC, and you may not benefit from other important consumer protections offered in the United States.

source nyfed.org