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On-line banking is a service provided by many banks, thrifts,
and credit unions that allows you to conduct banking transactions
over the Internet
using a personal computer, mobile telephone, or handheld
computer (such as a "personal digital assistant").
You may be able to:
- Access accounts round-the-clock, even on weekends
- See balances on-line and find out whether checks
or deposits have cleared
- Transfer funds between accounts
- Download information directly into personal finance
software
- Receive and pay bills on-line (without check writing,
envelopes, or stamps)
If you choose an "Internet-only" bank, you
may no longer have access to a local "bricks-and-mortar"
branch. Some Internet-only banks, however, offer higher
interest rates and fewer fees than traditional banks.
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Frequently, all you need to do is to log on to your bank's
Web site and follow the instructions. Before you begin
to bank on-line, however, you might take advantage of
the tips in the Secure Banking
on the Internet section of this Web site.
When choosing an on-line banking service, use the same
good business sense you would in any transaction. 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 on-line,
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.
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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 on-line.
If you decide to shop for a bank on the Internet,
check to see that the Federal
Deposit Insurance Corporation ("FDIC")
insures your bank's deposits. Just as "bricks-and-mortar"
banks display the FDIC seal at the branch, 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. Keep in mind that the FDIC does not insure
non-deposit investment products-mutual funds, money
market funds, annuities, life insurance policies, stocks,
and bonds-whether they are sold on-line or through a
bank's affiliate.
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. To find out
more about banking with an institution licensed overseas,
read the Cross-Border Banking
section of this Web site.
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You may discover that on-line transfers are similar to
writing a check and mailing it-transactions may not be
processed instantaneously. Be sure to find out from your
bank exactly when on-line or telephone account transfers
take place (immediately, end of day, etc.).
If you want to pay bills on-line, you should ask when
electronic payments are deducted from your account,
and when they are transferred to third-party billers.
To find out more about on-line bill paying services,
read the Electronic Payments on
the Internet section of this Web site.
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