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.
- 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 the 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 http://www.fdic.gov
Also, at http://www2.fdic.gov/edie you can learn about deposit insurance and estimate the adequacy of your deposit insurance using EDIE, your Electronic Deposit Insurance Estimator.
Back to the top