Beginners Guide for Business and Financial

Posts Tagged ‘online banking’

In the UK, many banks and building societies are attempting to capture a sizeable percentage of the online banking market share. And it seems that the UK consumers are benefiting from this competition most. Online banking in the UK is getting big; there is no doubt about it: 6.5 million consumers are online banking customers. And that figure is projected to rise every year–not because of bank closures–because of the ease that online banking offers. Everyone can say that it is easy and some people may still be dubious about that. But to anyone who is an online banking customer, they will know just how easy and simple it is.

Before choosing an online bank to open an account study carefully what services the bank allows you to do online. Also check the accessibility of talking to a live person. Make sure the banks internet site allow you send secure emails.

The UK, like any other country, has banks on every street corner. And these banks try to lure new customers in with big bright signs: “apply now and get a 6.9% APR rate on your card!” When you are on the Internet, these banks take the same approach. On their websites, there are banners that banks use for advertising space because they recognize that so many people are using online banking; and that they need to emphasize their competitive advantages to draw customers over the Internet.

Some major U.K. banks have opened independent online banks such as Abbey National with www.cahoot.com. There is also www.smile.co.uk the online bank of The Co-operative Bank.
Despite all of the advantages to online banking in the UK, not everything is perfect.
One in twenty consumers will fall victim to online fraud; and when they do, it will cost them big time. The UK’s fraud cost last year was £58 million ($101 million), which is quite scary for consumers looking to join an online bank. To be honest, it is safer to use a brick-and-mortar bank; however, in order to keep this safety net, you must sacrifice convenience and flexibility.

If you decide to open an online banking account but are apprehensive about the security issues, you should spend a considerable amount of time selecting a unique and hard-to-crack password; and in addition to this, you should also use other values for your optional information that is hard to determine.

Other Online Internet Banking Security Tips:

- Make sure your operating systems OS and browsers is updated with the latest upgrades (patches).
- Use an anti-virus and anti-spyware programs update them and scan your pc at least once a week.
- Install a personal firewall and learn to use it
- Always close your browser window after online banking and delete cookies.
- Change your passwords once a month.
- Never reply to emails asking for you to update your password or give your password. The online banks will never ask for your password.
- Always type in the browser address bar the online banking url. Do not click on a link especially in an email as this may take you to a scammer’s page.
- Never bank online from an internet café.

You have seen their ads and you may have wondered if they are worth a second look. What am I talking about? Online banks! Also known as internet banks, these are financial institutions who provide the majority of their banking services over the internet. Typically, online banks offer consumers high savings rates, low loan rates, and a mix of other services. Let’s look at 7 winners in this fast growing field:

1. E Trade Bank Part of E Trade Financial, the discount internet stockbroker. E Trade Bank offers checking accounts, money markets, and certificates of deposits as well as a VISA credit card.

2. Netbank Along with offering checking and money market accounts, Netbank provides mortgage and home equity lines of credit to customers. With tie-ins to affiliated companies Netbank also offers Auto, Homeowners, Condo/Co-op & Renters Insurance and Life, Health, Long Term Care & Dental Insurance.

3. Virtual Bank VirtualBank, a division of Lydian Private Bank, is a federally chartered bank regulated by the Office of Thrift Supervision. The bank offers checking, savings, and credit card services to customers.

4. Ever Bank This leading internet provider of banking services offers the most extensive, and varied services of any online institution. Ever Bank offers business and personal checking accounts, mortgages, home equity loans/lines of credit, reverse mortgages, a VISA credit card, and world currency accounts. This latter category is for investing in Deposit accounts and CDs denominated in any major world currency.

5. Emigrant Direct Part of Emigrant Savings Bank which traces its roots back to 1850 as a service provider to Irish immigrants. Emigrant has $10 billion in assets and more than $1 billion in net worth. It operates as a full service bank through 36 branches in the New York metropolitan area, and through EmigrantDirect.com. Emigrant offers only consumer services online; their high paying savings account is a chief investment vehicle.

6. ING Direct ING is a global financial institution of Dutch origin offering banking, insurance and asset management to over 60 million private, corporate and institutional clients in more than 50 countries. ING offers mortgages, loans/lines of credit, savings accounts, certificates of deposit, and money market mutual funds through another division.

7. MetLife Bank Yes, MetLife. A division of insurance powerhouse Metropolitan Life, MetLife Bank offers savings accounts, certificates of deposit, money market accounts, mortgages, and IRAs to consumers.

If you are banking exclusively with a “brick and mortar” institution you may be missing out on high paying investment options or competitive loan rates that easily undercut many traditional banking entities. These online banking success stories are only part of a growing number of savvy providers, some of whom are definitely worth a closer look by you, the consumer.