SAFE ONLINE BANKING TIPS

As use of the Internet continues to expand, more banks and thrifts are using the Web to offer products and services or otherwise enhance communications with consumers.

The Internet offers the potential for safe, convenient new ways to shop for financial services and conduct banking business, any day, any time. However, safe banking online involves making good choices - decisions that will help you avoid costly surprises or even scams.

This brochure offers information and tips to help you if you are thinking about or already using online banking systems. We will tell you how to:

• Confirm that an online bank is legitimate and that your deposits are insured
• Keep your personal information private and secure
• Understand your rights as a consumer
• Learn where to go for more assistance from banking regulators

Confirm that an Online Bank Is Legitimate and that Your Deposits Are Insured
Whether you are selecting a traditional bank or an online bank that has no physical offices, it's wise to make sure that it is legitimate and that your deposits are federally insured. Here are tips specifically designed for consumers considering banking over the Internet.

Read key information about the bank posted on its Web site.
Most bank Web sites have an "About Us" section or something similar that describes the institution. You may find a brief history of the bank, the official name and address of the bank's headquarters, and information about its insurance coverage from the FDIC.

Protect yourself from fraudulent Web sites.
For example, watch out for copycat Web sites that deliberately use a name or Web address very similar to, but not the same as, that of a real financial institution. The intent is to lure you into clicking onto their Web site and giving your personal information, such as your account number and password. Always check to see that you have typed the correct Web site address for your bank before conducting a transaction.

Verify the bank's insurance status.
To verify a bank's insurance status, look for the familiar FDIC logo or the words "Member FDIC" or "FDIC Insured" on the Web site.

Also, you should check the FDIC's online database of FDIC-insured institutions. You can search for an institution by going to the at FDIC's home page and selecting "Is My Bank Insured?" Enter the official name, city, and state of the bank, and click the "Find My Institution" button. A positive match will display the official name of the bank, the date it became insured, its insurance certificate number, the main office location for the bank, and its primary government regulator. If your bank does not appear on this list, contact the FDIC.

Some bank Web sites provide links directly to the FDIC's Web site to assist you in identifying or verifying the FDIC insurance protection of their deposits.

Also remember that not all banks operating on the Internet are insured by the FDIC. Many banks that are not FDIC-insured are chartered overseas. If you choose to use a bank chartered overseas, it is important for you to know that the FDIC may not insure your deposits. Check with your bank or the FDIC if you are not certain.

For insurance purposes, be aware that a bank may use different names for its online and traditional services; this does not mean you are dealing with separate banks. This means, for example, that to determine your maximum FDIC insurance coverage, your deposits at the parent bank will be added together with those at the separately named bank Web site and will be insured for up to the maximum amount covered for one bank. Talk to your banker if you have questions.

FDIC Insurance

Know where to get information about FDIC insurance.
Don't worry about your deposit insurance coverage if you or your family have less than $100,000 in all your accounts combined at the same FDIC-insured bank. But if your accounts total $100,000 or more, find out if they're within the insurance limit. Contact Glacier Bank SM for more information.

For additional assistance from the FDIC about the legitimacy of an institution or the insurance of your deposits, call the FDIC's Division of Compliance and Consumer Affairs toll-free at 877-275-3342 or send an e-mail via the FDIC's online Customer Assistance page.

The FDIC's Web site also has an interactive service called EDIE (Electronic Deposit Insurance Estimator) that can help you determine the amount of your insurance coverage. Or, you can read the online deposit insurance brochure " Your Insured Deposit ."

It's important to note that only deposits offered by FDIC-insured institutions are protected by the FDIC. Non-deposit investment and insurance products, such as mutual funds, stocks, annuities and life insurance policies that may be sold through Web sites or at the bank itself, are not FDIC-insured, are not guaranteed by the bank, and may lose value.

Protect Your Privacy
Some consumers may want to know how their personal information is used by their bank and whether it is shared with affiliates of the bank or other parties.

Starting July 2001, banks are required to give you a copy of our privacy policy once you become our customer, regardless of whether you are conducting business online or offline. You may also see a copy of it posted at Glacier Bank's Web site. By reviewing this policy you can learn what information we keep about you, and what information, if any, we share with other companies. We may want to share information about you to help market products specific to your needs and interests. If you do not wish to participate in information sharing, however, you have the right to prevent your bank from sharing your private personal information with parties not affiliated with the bank, except in certain limited circumstances. As of July 2001, your bank should provide a clear method for you to "opt out" of this type of information sharing.

You may have heard that some companies track your Web browsing habits while at their site, to understand your interests and then to market particular services or promotions. You may want to ask whether your bank tracks your browsing habits if these practices concern you. Also, your Web browser may enable you to block the ability of outside companies to track your browsing habits.

Your bank and your internet service provider may have more information about how to protect your privacy online.

Help Keep Your Transaction Secure
The Internet is a public network. Therefore, it is important to learn how to safeguard your banking information, credit card numbers, Social Security Number and other personal data.

Look at your bank's Web site for information about its security practices, or contact the bank directly.

Also learn about and take advantage of security features. Some examples are:

• Encryption is the process of scrambling private information to prevent unauthorized access. To show that your transmission is encrypted, some browsers display a small icon on your screen that looks like a "lock" or a "key" whenever you conduct secure transactions online. Avoid sending sensitive information, such as account numbers, through unsecured e-mail.

• Passwords or personal identification numbers (PINs) should be used when accessing an account online. Your password should be unique to you and you should change it regularly. Do not use birthdates or other numbers or words that may be easy for others to guess. Always carefully control to whom you give your password. For example, if you use a financial company that requires your passwords in order to gather your financial data from various sources, make sure you learn about the company's privacy and security practices.

• General security over your personal computer such as virus protection and physical access controls should be used and updated regularly. Contact your hardware and software suppliers or Internet service provider to ensure you have the latest in security updates.

If you have a security concern about your online accounts, contact us to discuss possible problems and remedies.

Remember that non-financial Web sites that are linked to your bank's site are not FDIC-insured.

As an added convenience to their customers, we offer online links to other non-financial sites. An outside company's products and services are not insured by the FDIC. We do not guarantee the products and services.

As in everyday business, before you order a product or service online, make sure you are comfortable with the reputation of the company making the offer. Only then should you give out your credit card or debit card number. And never give the number unless you initiated the transaction.

ONLINE SECURITY

What is Citizens Community Bank doing to provide Online Banking security?

Firewalls & Routers
Citizens Community Bank has implemented a system of firewalls forming a barrier between Citizens Community Bank's internal systems and the Internet. All incoming customer information and requests are routed to the firewall, which verifies the source and destination of each piece of information. The firewall modifies the information before delivering it to Citizens Community Bank's internal systems. All internal information is protected, keeping the structure of our network secure. We are able to monitor all activity within Online Banking, including logins, logoffs and access violations. This allows for quick identification of any suspicious activity.

Secure Data Storage and Encryption
Confidential information or highly sensitive data is stored securely and protected with stringent access controls. The following are two common ways to secure sensitive data. Both methods are incorporated into our Citizens Community Bank system:

1.) When your information is traveling over the Internet, it is encrypted. Encryption technology disguises information to hide its meaning and enhances confidentiality by restricting information access to only intended users. Encryption-based methods can also be used to verify message authenticity and accuracy. Information is encrypted and decrypted with a cipher and key using special computer hardware or software. Secrecy of the key and complexity of the cipher are crucial for the success of encryption controls. When you initiate an Online Banking session with Citizens Community Bank, our web server and your browser will communicate using the Secured Socket Layer (SSL) protocol and 128-bit encryption keys. (Citizens Community Bank customers must use a version 4.0 or higher browser that supports Secured Socket Layer for maximum protection.) This means it would be virtually impossible for even a "super computer" to obtain messages and information coded with this technology.

2.) Firewalls are physical devices, software programs, or both enhancing security by monitoring and limiting access to computer facilities. They create a security barrier between two or more networks to protect Citizens Community Bank's computer system from unauthorized entry. Filtering routers are incorporated into the firewall system to screen data traffic and direct messages to certain locations.

Regulation E
Federal law provides certain rights to consumers using electronic funds transfer services. See Citizens Community Bank's Regulation E Disclosure (Electronic Fund Transfers) to understand your rights and liabilities.

What can I do to increase security?
You can easily provide additional security for your Online Banking transactions. Here are some important suggestions:

1.) Access Online Banking from a version 4.0 or higher browser for maximum security of your transactions.

2.) Keep your Online Banking password secret. Make sure no one is watching you as you enter your password.

3.) Change your Online Banking password frequently.

4.) If you leave your computer unattended while signed-on, your account is at risk. Remember to exit Citizens Community Bank Online Banking before leaving your computer. For your protection, Citizens Community Bank Online Banking has an auto-logoff set for 10 minutes. After the designated auto-logoff time has passed without activity on your Online Banking, you will be signed off.

5.) Take all possible precautions to keep your computer clean and free from viruses that could be used to capture password keystrokes or affect your hard drive.

Customer Responsibility
There are items outside of our control that are your responsibility:

1.) Customer input errors

2.) Customer negligent handling or sharing of Online Banking Account numbers, Passwords / Personal Identification Numbers (PIN) leading to unauthorized access to accounts, and/or unreported theft to Passwords / PIN

3.) Customer's failure to complete the Online Banking session before properly exiting the system and/or leaving the computer unattended

4.) Failure to report known incidents of Password / PIN theft and/or unauthorized Online account access within 2 business days of discovery

How can I detect possible unauthorized transactions?
The best way to stay informed about your account and ensure your records match Citizens Community Bank's is to view and reconcile transactions on a timely basis. Be aware of the activity in your account and contact us immediately to report any discrepancies.

The statement displayed through Citizens Community Bank Online banking is for information purposes only, and is not equivalent at all times to the official statement information on records. The Citizens Community Bank official statement record shall prevail if there is any conflict with information reflected on your Citizens Community Bank Online statement.

For your protection, you need to report any discrepancy as soon as it is discovered.

How do I update my browser?
If you are not using a version 4.0 or higher, please contact your browser vendor for upgrade information and technical assistance.

Frequently Asked Questions

The following are questions frequently asked about Business Banking Online.

General Questions

Q: How do I enroll in Business Banking online?
A: To enroll in Online Banking after your HomeStreet Bank accounts have been opened, simply select Business in the Online Banking box on the home page, then click Sign Up. You may also click here to go directly to the instructions page. Please allow one business day to be set up as a user. Once you are set up, you will receive a confirmation email with instructions on how to obtain your password and User ID information.

Q: How do I access Business Banking Online?
A: Simply select Business from the Online Banking box on the home page, and then select Log In. You will be required to have the Company ID and password, and your User ID and password to log on.

Q: How frequently is my HomeStreet Bank information updated?
A: For transaction purposes, HomeStreet Bank's business days are Monday through Friday, excluding holidays. Transfers between HomeStreet accounts process immediately once the transaction is confirmed. All bill payments and stop payment requests received after 3:00 p.m. on business days, Saturdays, Sundays, or holidays that HomeStreet Bank chooses to remain closed will be processed the next business day.

Q: Can I look at all of my transactions at any time?
A: Yes, Business Banking Online and Bill Payer are available 24 hours a day, 7 days a week, except during special maintenance periods.

Q: How do I use the Electronic Bill Payment System?
A: Step–by–step instructions can be accessed by pressing the help button within Business Banking Online. Further instructions are included in the User's Guide.

Q: How long does it take to set up a new payee in the bill payment system?
A: Once you have entered a new payee into the Electronic Bill Payment System, it takes two business days to set up the payee to receive payments.

Q: Even though it takes two business days to set up a new payee, can I still enter a bill payment to the new payee during those two business days?
A: Yes. You can enter a payment to your new payee immediately; however, the payment will not be made until the payee is set up. Any payments made to the payee before the payee is added to the system will be delayed in reaching the payee by approximately two business days.

Q: After I make a bill payment, how long does it take for the money to be debited from my account?
A: The money will be debited electronically from your account on the day you select as the payment date. This is the date when the payment will be sent to the payee.

Q: How long does it take for a payment to reach the payee?
A: A payment that generates an electronic (ACH) payment will credit the payee's account within one to three business days, whereas a paper check will take up to 10 days. The time it takes for a payment to reach a payee should be considered when setting a payment date.

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Security Questions

Q: I'm still hesitant about banking online. Can other people see my account information?
A: Your account information is just as secure as it is at your physical, brick–and–mortar bank. We've taken every step possible to ensure that our system meets the latest security standards, including using the latest security encryption methods and software.

Q: I keep hearing a lot about encryption. What exactly is it, and why does it make everything more secure?
A: Encryption is basically a way to rewrite something in a code that can then be decoded later with the right key. The encryption we use employs a mathematical process for the key that is made up of a certain number of bits (hence, 128–bit encryption). The higher the number of bits, the better the encryption. While using our online banking system, all communication from you to the system and from the system to you is encrypted using a maximum of 128 bits. In other words, when you send information, your browser encrypts it using a 128–bit key and then sends it to the system. The system then decodes the information you sent it using the key (which is predetermined when your online banking session is started) and processes it.

Q: What about information that is stored? Is it encrypted as well?
A: Information stored on our system is also encrypted using at least 128 bits.

Q: How do I determine if my Web browser has the required 128–bit encryption?
A: To determine if your browser has 128–bit encryption, select Help in the browser’s toolbar, then select About. A pop-up box will provide details on the level of your browser. If your browser does not support 128–bit encryption, recommended browsers include Netscape Navigator 4.75, Internet Explorer 5.0 or 6.0, or AOL 6 to 8, but other browsers that support 128–bit encryption may also work.

Q: How can I learn more about the security methods you have implemented?
A: For a more detailed description of the security features in our online banking systemv

Impossible Possibilities Through Online Bank Accounts

Nowadays we do everything online. Right from ordering gifts, checking emails and of Course, using online banking facilities. By way of an online bank account you never again need to wait in a queue to have a cashier assist you with your monetary transactions.

Almost all modern financial institutions now offer their customers the facility to use bank account online. An Online bank account provides customers provisions for money transfer between accounts, online bill payment and account balance enquiry. Customers can use online bank account by simply signing up at bank’s website through the links provided at it.

Many feel confident about human interaction when they walk out of bank with a deposit slip in hand. To All those folks who usually rely on the services of a bank teller it might appear a little overwhelming to imagine an online bank account.

However one can consider Online banking just as safe and sure as conventional banking. All your transactions are documented and you receive an authorization number for each bill payment made using online bank account.

The other major benefit of online bank account is to have direct Deposit facility. Through Direct deposit your pay check is directly credited into your bank account online on each payday. This implies visit to bank after work on payday can be saved. Simply log in to your bank account online to find the money waiting there. Nevertheless your employer will still provide a record of your pay and deductions but it alleviates the necessity of a physical bank visit.

An additional pleasant characteristic of having a bank account online is that you can easily set-up post-dated payments. If you are going on a holiday but don’t want to miss your credit card bill payment, you can set your account to electronically send payments to the credit card company on a specified date. This can be done for almost all payments, thus preventing you from missing a payment’s due date.

On top of everything, With an Online Bank Account you are not required to write cumbersome post-dated checks, put it in envelope, find a stamp and mail it before you go on your vacation. It is simply a far easier and less cumbersome method.

Having a bank account online is the next step in banking. The full proof security features allow you to do your everyday banking in confidence from the convenience of your home.

How To Open An Online Bank Account by Terry Edwards

The Internet has made every day life a lot more convenient for everyone, and opening a bank account online is just one of those conveniences. It is simple, quick and easy. Best of all being that it only takes a few minutes to do.

If you're like most of us, you really don't have the time to go to the bank, and wait in the customer service area until someone has time to help you. Most, if not all of the local banking institutions in your area offer online account management, so if you do not already have an account established, you could open a bank account online.

Online banking is a convenient and secure way to keep track of transactions, and customers can view all accounts at a glance. The local bank is always available to make deposits and complete other financial transactions that need to be taken care of in person. If you choose to go with a bank that doesn't have a local office, deposits must be mailed or wired because most online banks do not offer transfers between outside bank accounts.

Before you open a bank account online, check out all the different services offered by online banking institutions, and make your choice based on which ones fit your needs the best. Many banks offer free checking with no minimum balance, no monthly fees, free bill pay, ATM/debit card, overdraft protection, with or without direct deposit, as well as other banking services like stop payments and copies of checks written. Some banks also pay customers interest based on average daily balance for savings and checking accounts, or have other interest incentives to keep the balance above a specified minimum.

As mentioned earlier it isn't necessary to open bank accounts online with financial institutions that have local branch offices in your area, but it is more convenient for making deposits that cannot be directly deposited, especially if you're in a hurry to get the money into your account.

If you haven't already, it's time to join the 21st century and get on the ball and open a bank account online, or start using the online banking features offered by your present financial institution. Enjoy the convenience of banking online and make better use of your time by paying bills directly with e-pay, and take advantage of all the time saving features that are offered by your bank.

You can easily direct deposit funds into your accounts and pay your bills online. This is a great money management tool that also allows transactions to be downloaded into your personal Quicken, or other accounting program.

If you haven't already done so, open a bank account online today and make your day-to-day life just a little bit easier.

About the Author
Discover more information on how to Open A Bank Account Online as well as information on banking and investments at http://www.Banking.InfoFromA-Z.com

The Advantages of Having a Bank Account Online by Morgan Hamilton

Online services have grown to become absolutely vital for everyone. We cannot do without online services, because they make things so much easier! Bank account online is a convenience which is meant to make your transaction as simple as possible. Bank account online can be setup by any financial institution, brick and mortar banks as well as virtual ones. The service offers many services and nearly everyone uses it these days. A lot of banks are now offering their clients free bank accounts online.

The only thing you need to do is visit the web site and click on your bank account. You may have transactions online, and you may check you bank account balance, everything easy and free! You just need to follow up the links that your bank provides you with, also sign-up for your password, and go check it up.

A bank account online saves you the tedious hours of waiting in the banks, and the long queues as well. It is absolutely comfortable for you. You only need to make several clicks and get to the bone!

Another thing is that you can really feel secure if you have online bank account. You don't rely on anyone to check how much money you have in your balance, and you can do everything in no time at all.

With your bank account online you can get direct deposit, which is really good. Direct deposit means that your pay check is directly deposited into your bank account online on each payday. You don't need to go to the bank to get your money. When you log in to your online bank account, you will find everything you need at your disposal.

If you want to have a post-dated check, this can also be done by using your bank account. Online services have never been so easy-to-understand!

Most people consider using a bank account online as the next step in banking. It is, indeed, easier. You get a lot of subtle additional services free for just opening a bank account online. Everything you think of now can be done from your house, which is basically why most people prefer online banking as a nice way to save time and energy.

About the Author
Morgan Hamilton offers expert advice and great tips regarding all aspects concerning credits. Learn more at Bank Account Online



Is an Online Bank Account for You? You Betcha by Tyson J Stevenson

It's important that you choose your bank account according to your need. But sometimes its gets really tough for a person to open a bank account. The reason being that the bank demands two forms of ID, a utility bill and may be even a reference and you don't have time for it. Let not yourself be intimidated. You have got a solution- open an Online Bank Account. Do you know what is it? How can you have it? Is it safe to have a bank account online? Hold your curiosity! We have your answers.

Online banking (Internet Banking) can be said as the mode of banking where bank services like transaction, payments, etc are executed over the internet through a bank's secure website. If you have a bank account online, you can avail the bank services even if you are not in town. Above all, online bank account helps you to avail services outside bank hours. So it's evident that the customer availing online bank account is increasing day by day.

Are you getting worried about its safety and security?

Did you ever ponder why the number of customers having online bank account is increasing day by day? Certainly because these online banks offer facilities that enjoys the best security system. They bring their best effort to protect financial and personal information of their clients. The online bank service utilizes the advanced encryption and security software to ensure you the safety and protect your account from the hackers.

This also allows you to enjoy number of services:

1. It helps you to access your account online free via intenet from the privacy of your home at day or night.

2. Depending on the type of online account you have, you are permitted to transfer your money between your accounts.

3. You can also pay your bills directly from your account. (Depending on type of online account you have; it may require some fees as well.)

4. They allow you to view your balances and also check the outstanding cheques or debts.

5. You can also download your account statement.

6. You can also process any number of online account creation or alteration.

Some guidelines to open such accounts are:

1.Choose an institution. Check what type of account you want, whether a saving account, free checking Account, etc.

2. Get to the Online bank's website.

3. Pick up the product that matches your needs.

4. Then provide the bank with the necessary information like your name, birthday. Sometimes even Driver's License number or Government ID.

5. Agree to abide by the rules. Also accept the responsibility for certain actions.

6. Print, sign and mail the document to the bank.

As these steps are done, you get your account open in the online bank. After a few transactions you will agree that the online bank provides you better control over your finance. Moreover opening a bank account online is easy, effective and is equipped with the services that matches your present needs.

About the Author
Tyson J Stevenson creates useful articles & reviews on a wide variety of everyday subjects. Expect to see his name often. View further samples of his work at HubbuH or OnLine Bank Account Info



The future of banking - Bank online by Jakob Jelling

By Jakob Jelling http://www.cashbazar.com

Chances are your bank is a virtual place. Since the invention of the Internet you can see your balances anywhere, at any time. Most banks think globally and have acted this way by creating secure portals to manage their account holder's information stored in their databases. This information stored usually shows account balances, previous transactions, current balances, interest paid and electronic scans of their checks. Anywhere you can get to a computer, your bank account is right in your hands, usually in real-time.

Online checking

Some banks even provide a service where you can pay your bills online vis-à-vis a checking account or saving account. You can setup creditors accounts, addresses and account numbers to be printed out on each check shipped. There are even some banks that will electronically send the check directly to their account for a nominal fee. Most electronic banking can be free depending on the minimum account requirements are met. Otherwise, electronic banking can cost up to $10 per month for the convenience to send money and manage your account via the web.

In our move towards a paperless society, banks have begun to stop shipping back cleared checks to their account holders. These cleared checks can be found on the Internet and printed out should they need access to these records. Some banks also will not ship their monthly statements as they too can be printed out on the web as well.

Interest bearing accounts

Some checking accounts, savings accounts and IRA's can also be managed via the Internet. Account holders can move money between accounts and add money to their savings accounts electronically without ever visiting a teller or the local branch.

Convenience

One of the greatest conveniences is being able to reconcile your accounts with the popular personal finance software such as MS Money and Quicken. Banks have ways to create files that can be imported into these software products so that balancing the account is done for them with little intervention. The web makes it very handy should you forget to record items into your register and will do it all for you with a couple clicks of the mouse.


About the Author
Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.

Online banking

Online banking isn't out to change your money habits. It simply uses today's technology to give you the option of bypassing the time-consuming, paper-based aspects of traditional banking in order to manage your finances more quickly and efficiently.

It is almost certainly the way most banking will be conducted in the not-too-distant future.

Benefits of banking online
Whether your bank is a traditional brick and mortar institution or a Web-only bank with no brick and mortar branches, online banking lets you connect to your bank through the Internet and do things such as view your accounts, transfer money between accounts, view images of canceled checks, print copies of those checks and pay bills online. You'll find that it's common for online banking sites to be compatible with money managing programs such as Quicken and Microsoft Money.

Many banks make it easier to manage your checking account by allowing you set up e-mail alerts so you can be notified when checks clear or when your balance slips below a certain level. There is also a detailed listing of your canceled checks.

If you'd like to eliminate paper checks from your life, you'll find that a growing number of companies allow you to make automatic payments through your online banking account.

Getting set up for online bill pay
Getting started is easy. The bank's Web site will walk you through the steps of registering the bills you want to pay and the accounts you want to use to pay them. You'll only have to enter the information once. You can always make changes and add or subtract bills.

If a monthly bill is for the same amount each month, you might want to schedule a recurring payment. If the amount varies from month to month you can pay the bill each month on a "one time" basis.

Set your schedule
Once you have registered the accounts you wish to pay online, the next step is to schedule payments. Your creditors receive your online payment in one of two ways: electronic payment or check. If the company is set up to accept electronic payments, your payment is automatically debited from your account and deposited electronically into their account. If the company can't accept electronic payments, your bank issues a check based on your online payment instructions.

Most bill payment sites include a payment activity page that lists all of your payments and their status -- scheduled, pending or processed.

Be aware that companies sometimes change the billing address or your account number without warning. It's important to check your statement each month to verify those details as well as your transactions.

Security
You'll have a user name and password to access your online account. Just as with any information used to access any other financial account, you should keep these codes secret. Your bank will tell you what to look for -- usually an icon of a locked padlock -- to ensure you're accessing your account over a secure line.

You should also beware of a scam called phishing where crooks send out e-mails that might look exactly like e-mails from your bank. These e-mails often claim that some account or personal information is needed. You're asked to click on a link and fill in the information. As a hard-and-fast rule, never click on a link in an e-mail and then divulge account information. Call your bank -- don't use a phone number supplied in the e-mail -- and ask if the e-mail is legitimate.

Whether you bank online or prefer the old fashioned way, you receive a statement every month that details transactions and account status. In the next section, you'll see why you should take time each month to carefully review your statement.

Did you know…
The number of online banking customers increased to nearly 40 million in the fourth quarter of 2005, according to comScore Networks, which measures and analyzes consumer behavior. That was a 27 percent increase over the previous year; online bill paying increased 36 percent during that time.

What is online banking?

What is online banking?

If you're like most people, you've heard a lot about

online banking but probably haven't tried it yourself.

You still pay your bills by mail and deposit checks at

your bank branch, much the way your parents did.

You might shop online for a loan, life insurance or a home mortgage,

but when it comes time to commit, you feel more comfortable working

with your banker or an agent you know and trust.

Online banking isn't out to change your money habits. Instead, it

uses today's computer technology to give you the option of bypassing

the time-consuming, paper-based aspects of traditional banking in

order to manage your finances more quickly and efficiently.

Origin of online banking
The advent of the Internet and the popularity of personal computers

presented both an opportunity and a challenge for the banking industry.

For years, financial institutions have used powerful computer

networks to automate millions of daily transactions; today, often

the only paper record is the customer's receipt at the point of sale.

Now that its customers are connected to the Internet via personal

computers, banks envision similar economic advantages by adapting

those same internal electronic processes to home use.

Banks view online banking as a powerful "value added" tool to attract

and retain new customers while helping to eliminate costly paper handling

and teller interactions in an increasingly competitive banking environment.

Brick-to-click banks
Today, most large national banks, many regional banks and even smaller

banks and credit unions offer some form of online banking, variously

known as PC banking, home banking, electronic banking or Internet

banking. Those that do are sometimes referred to as "brick-to-click"

banks, both to distinguish them from brick-and-mortar banks that have

yet to offer online banking, as well as from online or "virtual" banks that

have no physical branches or tellers whatsoever.

The challenge for the banking industry has been to design this new

service channel in such a way that its customers will readily learn to

use and trust it. After all, banks have spent generations earning our

trust; they aren't about to risk that on a Web site that is frustrating,

confusing or less than secure.

Most of the large banks now offer fully secure, fully functional online

banking for free or for a small fee. Some smaller banks offer limited

access or functionality; for instance, you may be able to view your

account balance and history but not initiate transactions online.

As more banks succeed online and more customers use their sites,

fully functional online banking likely will become as commonplace as

automated teller machines.

Virtual banks
If you don't mind foregoing the teller window, lobby cookie and

kindly bank president, a "virtual" or e-bank, such as may save you

very real money. Virtual banks are banks without bricks; from the

customer's perspective, they exist entirely on the Internet, where

they offer pretty much the same range of services and adhere to

the same federal regulations as your corner bank.

Virtual banks pass the money they save on overhead like buildings

and tellers along to you in the form of higher yields, lower fees and

more generous account thresholds.

The major disadvantage of virtual banks revolves around ATMs.

Because they have no ATM machines, virtual banks typically charge

the same surcharge that your brick-and-mortar bank would if you

used another bank's automated teller. Likewise, many virtual banks

won't accept deposits via ATM; you'll have to either deposit the

check by mail or transfer money from another account.

Advantages of online banking

• Convenience: Unlike your corner bank, online banking sites
• never close; they're available 24 hours a day, seven days a
  
• week, and they're only a mouse click away.
• Ubiquity: If you're out of state or even out of the country
  
• when a money problem arises, you can log on instantly to
• your online bank and take care of business, 24/7.
• Transaction speed: Online bank sites generally execute
  
• and confirm transactions at or quicker than ATM
  
• processing speeds.
• Efficiency: You can access and manage all of your bank
  
• accounts, including IRAs, CDs, even securities, from one
• secure site.
• Effectiveness: Many online banking sites now offer
• sophisticated tools, including account aggregation, stock
  
• quotes, rate alerts and portfolio managing programs to help
  
• you manage all of your assets more effectively. Most are also
  
• compatible with money managing programs such as Quicken
• and Microsoft Money.

Disadvantages of online banking

• Start-up may take time: In order to register for your bank's
  
• online program, you will probably have to provide ID and sign
  
• a form at a bank branch. If you and your spouse wish to view
• and manage your assets tog
• ether online, one of you may have to sign a durable power of
• attorney before the bank will display all of your holdings
  
• together.
• Learning curve: Banking sites can be difficult to navigate at
• first. Plan to invest some time and/or read the tutorials in
  
• order to become comfortable in your virtual lobby.
• Bank site changes: Even the largest banks periodically
• upgrade their online programs, adding new features in
  
• unfamiliar places. In some cases, you may have to
  
• re-enter account information.
• The trust thing: For many people, the biggest hurdle to
  
• online banking is learning to trust it. Did my transaction go
  
• through? Did I push the transfer button once or twice? Best
• bet: always print the transaction receipt and keep it with
• your bank records until it shows up on your personal site and/
• or your bank statement.

Safe Internet Banking

Tips for Safe Banking Over the Internet

As use of the Internet continues to expand, more banks and thrifts are using the Web to offer products and services or otherwise enhance communications with consumers. The Internet offers the potential for safe, convenient new ways to shop for financial services and conduct banking business, any day, any time. However, safe banking online involves making good choices – decisions that will help you avoid costly surprises or even scams. This brochure offers information and tips to help you if you are thinking about or already using online banking systems. We will tell you how to: Confirm that an online bank is legitimate and that your deposits are insured Keep your personal information private and secure Understand your rights as a consumer Learn where to go for more assistance from banking regulators

Confirm that an Online Bank Is Legitimate and that Your Deposits Are Insured

Whether you are selecting a traditional bank or an online bank that has no physical
offices, it’s wise to make sure that it is legitimate and that your deposits are federally
insured. Here are tips specifically designed for consumers considering banking over
the Internet.

Read key information about the bank posted on its Web site.

Most bank Web sites have an "About Us" section or something similar that describes

the institution. You may find a brief history of the bank, the official name and address

of the bank’s headquarters, and information about its insurance coverage from the

FDIC.

Protect yourself from fraudulent Web sites.

For example, watch out for copycat Web sites that deliberately use a name or
Web address very similar to, but not the same as, that of a real financial institution.
The intent is to lure you into clicking onto their Web site and giving your personal
information, such as your account number and password. Always check to see that
you have typed the correct Web site address for your bank before conducting a
transaction.

Verify the bank’s insurance status.

To verify a bank’s insurance status, look for the familiar FDIC logo or the words

"Member FDIC" or "FDIC Insured" on the Web site.

Also, you should check the FDIC’s online database of FDIC-insured institutions.

(formerly “Is My Bank Insured?”). Search by name, city, state or zip code of the bank,

and click the "Find" button. A positive match will display the official name of the

bank, the date it became insured, its insurance certificate number, the main

office location for the bank (and branches), its primary government regulator,

and other links to detailed information about the bank. If your bank does not

appear on this list, contact the FDIC.

Some bank Web sites provide links directly to the FDIC’s Web site to assist

you in identifying or verifying the FDIC insurance protection of their deposits.

Also remember that not all banks operating on the Internet are insured by the

FDIC. Many banks that are not FDIC-insured are chartered overseas. If you

choose to use a bank chartered overseas, it is important for you to know that

the FDIC may not insure your deposits. Check with your bank or the FDIC

if you are not certain.

For insurance purposes, be aware that a bank may use different

names for its online and traditional services; this does not mean you

are dealing with separate banks.

This means, for example, that to determine your maximum FDIC insurance

coverage, your deposits at the parent bank will be added together with those at

the separately named bank Web site and will be insured for up to the maximum

amount covered for one bank. Talk to your banker if you have questions.

Know where to get more information about FDIC insurance.

Don't worry about your deposit insurance coverage if you or your family have less

than $100,000 in all your accounts combined at the same FDIC-insured bank.

But if your accounts total $100,000 or more, find out if they're within the insurance limit.

Contact your bank for more information.

For additional assistance from the FDIC about the legitimacy of an institution or the
insurance of your deposits, call the FDIC's Division of Compliance and Consumer Affairs
toll-free at 800-934-3342 or send an e-mail via the FDIC’s online.