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.
If you are thinking about or already
using online banking systems:
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.
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 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.
Questions can be answered by Allie
Mae.
FDIC Home Page
