An article in Online Media Daily reports on a research study which found that people who bank online spent more than double the average online shopper’s expenditures during the previous six months. The article concludes that
…an uptick in online banking rates might thus help revive e-commerce”
(Note: It’s not clear if the authors of the study came to that conclusion, or just the author of the article).
My take: A ridiculous conclusion.
Consumers over 30 (if not 40) start off online by surfing the Web, then buying something, and then accessing bank accounts. Younger consumers — for whom online behavior is innate, not acquired — conduct their lives online, and already have sky-high eCommerce and online banking adoption rates.
But even if online banking adoption did lead to eCommerce activity, did it not occur to the study authors that online banking customers might be more affluent than other consumers, and that that might be the reason why they spend more online?
The article goes on to imply that banks’ lack of home page personalization is an obstacle to online banking adoption. According to another study from another researcher, banks were “behind the curve” in home page personalization, product and service promotions, and online recruitment.
That might be true — but that has nothing to do with online banking adoption. Inertia (in other words, 30 to 40 years of banking offline) and security fears are today’s predominant hurdles that keep non-online bankers from becoming online bankers. How in the world could personalizing the bank’s public site home page drive online banking adoption?
Unfortunately, the article buries the most important study among the ones it cites. That being a study conducted by IBM and Kana Software that found that financial institutions — not just banks, but insurers and investment firms — are failing to provide adequate online self-service. According to this study, 95% of financial Web sites fail to answer questions about topics like check cancellation fees, making insurance claims, and buying and selling stocks.
Personally, I find the 95% number suspiciously high. But if it’s 95% or 50%, the underlying implication is the critical point: That online banking (and other financial services) adoption is suffering because service functionality is lacking.
And that’s the best reason for a banking exec to be concerned about online banking adoption rates. Not because it might drive more eCommerce spending, but because it might drive high-cost service transactions to lower cost channels like the Web.
And because it improves the perceptions in the minds of customers that the bank is providing a high-quality, convenient customer experience. Which clearly is not common in today’s financial services world — despite the claims that financial firms make.
What is Online Banking?
OnlineOnline bankingbankingbanking is the practice of making bank transactions or paying bills via the Internet. Thanks to technology, and the Internet in particular, we no longer have to leave the house. We can shop onlineonlineonline, communicate onlineonlineonline, and now, we can even do our bankingbankingbanking onlineonlineonline. OnlineOnlineOnline bankingbankingbanking allows us to make deposits, withdrawals and pay bills all with the click of a mouse. It doesn't get much more convenient than that.
The benefits are many.
For the onlineonlineonline bankingbankingbanking customer, the convenience factor rates high. No longer does a person have to wait for the bank statement to arrive in the mail to check account balances. One can check the balance every day just by logging onto one's account. In addition to checking balances and transactions, one can catch discrepancies in the account right away and deal with them swiftly. The best part is that this can be done anywhere! As long as one has Internet access, one can practice onlineonlineonline bankingbankingbanking.
Since bills are paid onlineonlineonline, the necessity of writing checks, affixing postage and posting the payment in the mail is eliminated. Once the amount is entered and the payee is checked off, the funds are automatically deducted from the payer's choice of account.
Since the cost to the bank is minimal, the cost to the consumer, in many cases, is also minimal. While there is usually a fee for onlineonlineonline bankingbankingbanking, it can be extremely low. Those who partake in onlineonlineonline bankingbankingbanking all agree it's worth every penny. Not having to spend all Saturday morning standing in a crowded bank line is justification for most. It can even pay for itself since costs like postage and ATM fees are reduced.
OnlineOnlineOnline bankingbankingbanking also eliminates paper waste, which is a plus not only for those who have to handle all the paper work, but also for the environment.
Of course, there are also cons.
Security is always an issue with Internet transactions. Although information is encrypted, and the chances of your account being hacked are slim, it happens. Banks pay big bucks to install high tech firewalls. Chances are your money is in good hands.
You're also missing the personal service. No smiling teller or representative hands you a receipt. Instead, except for what's printed into your account, all the paperwork is up to you. Always print copies of important transactions.
If you have to deposit cash or checks, you'll still have to spend time at the ATM. Unless a payment to you is directly deposited, this is one thing you'll always have to handle manually.
Still, the benefits far outweigh the risks. The convenience of onlineonlineonline bankingbankingbanking is a perk well worth the cost. What would you rather do, stand in a long line on a weekend morning or handle your transactions in the comfort of your own home?
The benefits are many.
For the onlineonlineonline bankingbankingbanking customer, the convenience factor rates high. No longer does a person have to wait for the bank statement to arrive in the mail to check account balances. One can check the balance every day just by logging onto one's account. In addition to checking balances and transactions, one can catch discrepancies in the account right away and deal with them swiftly. The best part is that this can be done anywhere! As long as one has Internet access, one can practice onlineonlineonline bankingbankingbanking.
Since bills are paid onlineonlineonline, the necessity of writing checks, affixing postage and posting the payment in the mail is eliminated. Once the amount is entered and the payee is checked off, the funds are automatically deducted from the payer's choice of account.
Since the cost to the bank is minimal, the cost to the consumer, in many cases, is also minimal. While there is usually a fee for onlineonlineonline bankingbankingbanking, it can be extremely low. Those who partake in onlineonlineonline bankingbankingbanking all agree it's worth every penny. Not having to spend all Saturday morning standing in a crowded bank line is justification for most. It can even pay for itself since costs like postage and ATM fees are reduced.
OnlineOnlineOnline bankingbankingbanking also eliminates paper waste, which is a plus not only for those who have to handle all the paper work, but also for the environment.
Of course, there are also cons.
Security is always an issue with Internet transactions. Although information is encrypted, and the chances of your account being hacked are slim, it happens. Banks pay big bucks to install high tech firewalls. Chances are your money is in good hands.
You're also missing the personal service. No smiling teller or representative hands you a receipt. Instead, except for what's printed into your account, all the paperwork is up to you. Always print copies of important transactions.
If you have to deposit cash or checks, you'll still have to spend time at the ATM. Unless a payment to you is directly deposited, this is one thing you'll always have to handle manually.
Still, the benefits far outweigh the risks. The convenience of onlineonlineonline bankingbankingbanking is a perk well worth the cost. What would you rather do, stand in a long line on a weekend morning or handle your transactions in the comfort of your own home?
A Bank, at Your Service
Business owners have always had a love-hate relationship with their bankers--and these relationships have only become more strained as local banks have been gobbled up by large corporations in recent years. Sure, Citigroup and Bank of America offer their clients ubiquitous branches and online banking and even prestige--and there's nothing wrong with that. But try getting a line of credit extended quickly, let alone getting one of the bank's higher-ups on the phone. It rarely happens. And yet there's hope. As the total number of banks shrinks rapidly, a new breed of entrepreneur-friendly bank is emerging to fill the void.
The boomlet of start-up activity comes after 20 long years of consolidation in the banking world. At the end of 2004, there were 7,630 banks in the United States, according to the Federal Deposit Insurance Corp. That's roughly half as many as there were at the end of 1984, the year the population of banks peaked.
But as the overall number of banks has dwindled, start-up activity has begun to tick upward. In 2004, 127 start-up, or "de novo," banks were established. Another 147 banks received charters in the first 10 months of this year--up from the 94 start-ups in the same period two years ago. The typical de novo raises approximately $15 million in assets at the time of its launch.
Consolidation is fueling this trend, creating gaps in the market and displacing experienced bank executives who are in a position to raise money and to obtain a charter. Local business owners are also often involved in bank start-ups, as investors or as proponents--nurturing the trend perhaps because they sense the need for a bank renaissance the most.
"Welcome, Lon Getlin!"
Thurston First Bank is a prototypical de novo. Last year, Michael Edwards, who has worked in banking since 1963, raised $11.4 million from 375 investors--a mix of professionals and civic-minded business owners--to launch the Olympia, Wash., bank.
Like all de novo banks with limited assets, Thurston First serves a small number of clients--just 125 at this point. Unlike most, it caters exclusively to a business clientele and avoids all forms of consumer banking, operating without an advertising campaign or even a public branch. Companies that bank with Thurston First are typically too big for a standard community bank, says Edwards, but are too small to be well cared for by one of the major national institutions. Among Thurston First's specialties: land, commercial real estate, equipment financing, and asset acquisition loans. It offers personal banking services to its customers only after it has established a track record with them as business clients.
Thurston First further differentiates itself by offering great perks, including a mobile branch that will pick up deposits at a customer's office. The bank also deploys remote deposit technology. A customer can have deposit checks read by a special scanner on his desk. Funds are disbursed to the correct account without the customer or even the paper check leaving his office.
Such up-to-date technology is one of the hallmarks of the newest crop of de novos. In the past, only bigger banks could afford to offer online banking and the like, but now so many systems can be outsourced that newer, smaller banks can match or even beat the systems offered by their regional or national rivals.
Beyond systems or services, however, a personal relationship with the head of the bank is the key to the de novo's sales pitch. Thurston First's Edwards, for example, encourages customers to call him on his cell phone.
This is not uncommon in the de novo world. Lon Getlin, who runs a pharmaceutical supply business in West Linn, Oreg., used to split his business between Bank of America and Wells Fargo. He switched to the Bank of Oswego in Lake Oswego, Oreg., after he met Dan Heine, co-founder and CEO of the bank. Heine promised Getlin favorable terms on a line of credit, but he also agreed to review his business plan and provide details on financing options above and beyond what the typical bank would offer. And when Getlin comes to the bank to meet with Heine, he is greeted at the door by a sign that welcomes him by name. "I was totally impressed by a whole bunch of things that they said they would do and in fact did," says Getlin.
"Getting the Band Back Together"
Certainly part of the reason for the boomlet in de novo banks is that the market for raising capital is as favorable as it has been for some time, says Edward Carpenter, chairman of Carpenter & Co., an Irvine, Calif., investment bank that advises banks on financing and acquisitions.
With banks reporting strong profits, Carpenter says, investors are eagerly pouring capital into the industry. Net income for all banks in 2004 was $104.7 billion--up 43% from three years earlier, according to FDIC data--with small banks outperforming the industry average. Shares of banks with assets of less than $500 million have increased by 181% over three years, Carpenter says. Such growth fuels heady prices when small bank shares are traded and when banks are sold. Banks involved in mergers are selling for nearly 25 times earnings.
Business owners may worry that one drawback of signing up with a de novo bank is that it's built to flip. And in some cities, there are already well-known serial bank entrepreneurs. Of course, any business you work with can be sold at any time. But according to the FDIC, only 5% of de novo banks are acquired in their first five years of business.
Meanwhile, more de novos are chartered every week. Consider the extraordinary case of Square 1 Bank, based in Durham, N.C., which was formally established last August. Initially, a group led by CEO Richard Casey set out to raise $105 million, the amount specified in its charter and an unusually large sum for a de novo bank. In fact, the offering was oversubscribed at $200 million.
Like other de novos, Square 1 was set on course by a merger. Casey had been an executive at Imperial Bank, where he initiated a program for lending to venture capital-backed companies. Imperial was then taken over by Detroit-based Comerica Bank. Casey left after a year, waiting out his noncompete clause, and then joined with former colleagues to launch Square 1. "It was a case of getting the old band back together," he says.
Today, Square 1 focuses on what it perceives as an underserved niche: companies that are backed by venture capital. The fledgling bank set up offices in technology parks in cities such as Austin, Seattle, North Carolina's Research Triangle, and Palo Alto, Calif. The plan is to provide a full range of banking services to this narrow band of clients. Casey and his team have knowledge of and ties to that community that run deep, he says.
Like other start-up bankers, he brings decades of experience to a bank that is brand new.
Looking for Account Ability
As with any start-up you work with, a de novo bank requires careful vetting
How do I find a de novo bank near me?
One way is to search the FDIC's Institution Directory. You can search for banks by state or Zip code and date of charter. You can also call state banking authorities or the federal Comptroller of the Currency, whose office formally issues bank charters.
How can I do due diligence on a de novo?
All banks must be insured by the FDIC to get a charter. By using the "bank find" feature on the FDIC's website, you can verify the insurance status of a bank. You can also call the FDIC hot line at 877-ASK-FDIC (877-275-3342).
How can I make sure the bank is right for me?
A lot of this will boil down to personal chemistry. You should also find out what the bank's assets are and how many customers it has. The typical de novo bank with $15 million in assets will have a loan maximum stated in its charter. If the cap is, say, $2 million, and you need that much or more, look elsewhere.
The boomlet of start-up activity comes after 20 long years of consolidation in the banking world. At the end of 2004, there were 7,630 banks in the United States, according to the Federal Deposit Insurance Corp. That's roughly half as many as there were at the end of 1984, the year the population of banks peaked.
But as the overall number of banks has dwindled, start-up activity has begun to tick upward. In 2004, 127 start-up, or "de novo," banks were established. Another 147 banks received charters in the first 10 months of this year--up from the 94 start-ups in the same period two years ago. The typical de novo raises approximately $15 million in assets at the time of its launch.
Consolidation is fueling this trend, creating gaps in the market and displacing experienced bank executives who are in a position to raise money and to obtain a charter. Local business owners are also often involved in bank start-ups, as investors or as proponents--nurturing the trend perhaps because they sense the need for a bank renaissance the most.
"Welcome, Lon Getlin!"
Thurston First Bank is a prototypical de novo. Last year, Michael Edwards, who has worked in banking since 1963, raised $11.4 million from 375 investors--a mix of professionals and civic-minded business owners--to launch the Olympia, Wash., bank.
Like all de novo banks with limited assets, Thurston First serves a small number of clients--just 125 at this point. Unlike most, it caters exclusively to a business clientele and avoids all forms of consumer banking, operating without an advertising campaign or even a public branch. Companies that bank with Thurston First are typically too big for a standard community bank, says Edwards, but are too small to be well cared for by one of the major national institutions. Among Thurston First's specialties: land, commercial real estate, equipment financing, and asset acquisition loans. It offers personal banking services to its customers only after it has established a track record with them as business clients.
Thurston First further differentiates itself by offering great perks, including a mobile branch that will pick up deposits at a customer's office. The bank also deploys remote deposit technology. A customer can have deposit checks read by a special scanner on his desk. Funds are disbursed to the correct account without the customer or even the paper check leaving his office.
Such up-to-date technology is one of the hallmarks of the newest crop of de novos. In the past, only bigger banks could afford to offer online banking and the like, but now so many systems can be outsourced that newer, smaller banks can match or even beat the systems offered by their regional or national rivals.
Beyond systems or services, however, a personal relationship with the head of the bank is the key to the de novo's sales pitch. Thurston First's Edwards, for example, encourages customers to call him on his cell phone.
This is not uncommon in the de novo world. Lon Getlin, who runs a pharmaceutical supply business in West Linn, Oreg., used to split his business between Bank of America and Wells Fargo. He switched to the Bank of Oswego in Lake Oswego, Oreg., after he met Dan Heine, co-founder and CEO of the bank. Heine promised Getlin favorable terms on a line of credit, but he also agreed to review his business plan and provide details on financing options above and beyond what the typical bank would offer. And when Getlin comes to the bank to meet with Heine, he is greeted at the door by a sign that welcomes him by name. "I was totally impressed by a whole bunch of things that they said they would do and in fact did," says Getlin.
"Getting the Band Back Together"
Certainly part of the reason for the boomlet in de novo banks is that the market for raising capital is as favorable as it has been for some time, says Edward Carpenter, chairman of Carpenter & Co., an Irvine, Calif., investment bank that advises banks on financing and acquisitions.
With banks reporting strong profits, Carpenter says, investors are eagerly pouring capital into the industry. Net income for all banks in 2004 was $104.7 billion--up 43% from three years earlier, according to FDIC data--with small banks outperforming the industry average. Shares of banks with assets of less than $500 million have increased by 181% over three years, Carpenter says. Such growth fuels heady prices when small bank shares are traded and when banks are sold. Banks involved in mergers are selling for nearly 25 times earnings.
Business owners may worry that one drawback of signing up with a de novo bank is that it's built to flip. And in some cities, there are already well-known serial bank entrepreneurs. Of course, any business you work with can be sold at any time. But according to the FDIC, only 5% of de novo banks are acquired in their first five years of business.
Meanwhile, more de novos are chartered every week. Consider the extraordinary case of Square 1 Bank, based in Durham, N.C., which was formally established last August. Initially, a group led by CEO Richard Casey set out to raise $105 million, the amount specified in its charter and an unusually large sum for a de novo bank. In fact, the offering was oversubscribed at $200 million.
Like other de novos, Square 1 was set on course by a merger. Casey had been an executive at Imperial Bank, where he initiated a program for lending to venture capital-backed companies. Imperial was then taken over by Detroit-based Comerica Bank. Casey left after a year, waiting out his noncompete clause, and then joined with former colleagues to launch Square 1. "It was a case of getting the old band back together," he says.
Today, Square 1 focuses on what it perceives as an underserved niche: companies that are backed by venture capital. The fledgling bank set up offices in technology parks in cities such as Austin, Seattle, North Carolina's Research Triangle, and Palo Alto, Calif. The plan is to provide a full range of banking services to this narrow band of clients. Casey and his team have knowledge of and ties to that community that run deep, he says.
Like other start-up bankers, he brings decades of experience to a bank that is brand new.
Looking for Account Ability
As with any start-up you work with, a de novo bank requires careful vetting
How do I find a de novo bank near me?
One way is to search the FDIC's Institution Directory. You can search for banks by state or Zip code and date of charter. You can also call state banking authorities or the federal Comptroller of the Currency, whose office formally issues bank charters.
How can I do due diligence on a de novo?
All banks must be insured by the FDIC to get a charter. By using the "bank find" feature on the FDIC's website, you can verify the insurance status of a bank. You can also call the FDIC hot line at 877-ASK-FDIC (877-275-3342).
How can I make sure the bank is right for me?
A lot of this will boil down to personal chemistry. You should also find out what the bank's assets are and how many customers it has. The typical de novo bank with $15 million in assets will have a loan maximum stated in its charter. If the cap is, say, $2 million, and you need that much or more, look elsewhere.
The Advantages ofOnline Banking
Going to a bank can take a lot of your time, considering the fact that banks have a fixed timetable and the most of the times you have to queue up because everybody seems to go there at the same time with you.
This is one of the reasons why more and more people get onto online banking. If you want to save more of your time as well as manage your finances in an easier way you should combine online banking with Microsoft Money 2004.
Here we would like to present you the advantages of using Money 2004 and online banking. And they are not just a few, if we take into consideration the fact that the number of people who use online banking has exponentially raised from 0.4 million to 17.2 million, according to Mintel survey.
And this happened because with online banking:
A lot of your time will be saved because you don't have to visit a bank and wait in a long queue;
Online banking is more accessible because it gives you the opportunity to check your bank account at a time and a place that is favorable to you;
No matter the place where you are, as long if you have Internet access, you can take care of your finances through online banking service;
Online banking involves no difficulties in carrying out financial transactions, which are safe and secure;
Almost every financial institution offers you the possibility to see your latest transactions, transfer money to people or institutions, pay checks, apply for loans and arrange or change standing orders and direct debits.
At all these advantages of online banking, add the power of Money 2004, which provides you a range of instruments meant to help you control your finances. To simplify the process even more, you will receive a complete manual that guides you through the entire process of online banking step by step.
Money 2004 helps you in many ways to manage your capital online. Using online banking and Money 2004 you are able to get a financial SNAPSHOT of your bank and building society and savings. Also you can download online statements from your financial institution to your computer, find out which dealings have been carried out as soon as they were passed over successfully. Furthermore, online banking and Money 2004 allow you to double-check your entries automatically.
These are some of the reasons why you should get started with online banking. You can only win!
This is one of the reasons why more and more people get onto online banking. If you want to save more of your time as well as manage your finances in an easier way you should combine online banking with Microsoft Money 2004.
Here we would like to present you the advantages of using Money 2004 and online banking. And they are not just a few, if we take into consideration the fact that the number of people who use online banking has exponentially raised from 0.4 million to 17.2 million, according to Mintel survey.
And this happened because with online banking:
A lot of your time will be saved because you don't have to visit a bank and wait in a long queue;
Online banking is more accessible because it gives you the opportunity to check your bank account at a time and a place that is favorable to you;
No matter the place where you are, as long if you have Internet access, you can take care of your finances through online banking service;
Online banking involves no difficulties in carrying out financial transactions, which are safe and secure;
Almost every financial institution offers you the possibility to see your latest transactions, transfer money to people or institutions, pay checks, apply for loans and arrange or change standing orders and direct debits.
At all these advantages of online banking, add the power of Money 2004, which provides you a range of instruments meant to help you control your finances. To simplify the process even more, you will receive a complete manual that guides you through the entire process of online banking step by step.
Money 2004 helps you in many ways to manage your capital online. Using online banking and Money 2004 you are able to get a financial SNAPSHOT of your bank and building society and savings. Also you can download online statements from your financial institution to your computer, find out which dealings have been carried out as soon as they were passed over successfully. Furthermore, online banking and Money 2004 allow you to double-check your entries automatically.
These are some of the reasons why you should get started with online banking. You can only win!
The Online Banking System
These days, online and offline businesses have become tightly and neatly intertwined and dependent on one another, although each stands independent of the other. This has allowed several benefits to arise that can serve everyday living for people of every social and cultural strata. One of the main advantages is monetary exchange, which the primary action of any and every business in existence and those consumers who utilize them.
Several online banking systems allow for the transaction of currency to be made between any two parties, as long as both have an account at any one or several of these systems. Certainly, every single business, whether online based or offline based, has such an account. This is because a great inundation of business activity takes place over the Internet on a daily basis. Even offline business conduct such affairs online for the purpose of ease and convenience.
Checks sent through regular mail takes sometimes several days to reach their recipients and then several more days to clear banking security scans. Online banking transactions, on the other hand, can be performed instantaneously by simply sending the amount tendered straight from one account into another. This currency can then be used as buying power throughout the Internet.
Yes, such money can be transferred to offline banking or credit union acounts, which usually requires a 3-4 day clearance but most online banking accounts offer credit and debit cards so that account holders can extract money straight from their online accounts by way of a regular ATM machine. In either case, the time wait is minimized or non existent for online monetary withdrawal, safe and assured.
How do these accounts differ from the sites promoting offline banks and credit unions? Well, for one thing and this is the most important consideration. Those sites serving offline banks and credit unions do not allow account holders to take money out over public or home computers for security reasons but still inconvenient, especially in urgent or emergency situations, although such funds can be transferred into the online banking accounts, again with a 3-4 day waiting period.
Once the clearance time passes, such currency can then be used online or removed via an ATM machine, just like payment that originated online. This would seem to suggest that online banking systems have not only become more common and more popular but even preferable to the alternative.
There is no mystery why then, offline businesses employ the use of online banking systems since general business insists on easy, quickly moving exchanges. Because the average person can also freely engage in such wonderful practices, online banking has rendered walk in banking virtually obsolete. It would be no surprise if all future banking were eventually to be conducted solely over the computer.
Several online banking systems allow for the transaction of currency to be made between any two parties, as long as both have an account at any one or several of these systems. Certainly, every single business, whether online based or offline based, has such an account. This is because a great inundation of business activity takes place over the Internet on a daily basis. Even offline business conduct such affairs online for the purpose of ease and convenience.
Checks sent through regular mail takes sometimes several days to reach their recipients and then several more days to clear banking security scans. Online banking transactions, on the other hand, can be performed instantaneously by simply sending the amount tendered straight from one account into another. This currency can then be used as buying power throughout the Internet.
Yes, such money can be transferred to offline banking or credit union acounts, which usually requires a 3-4 day clearance but most online banking accounts offer credit and debit cards so that account holders can extract money straight from their online accounts by way of a regular ATM machine. In either case, the time wait is minimized or non existent for online monetary withdrawal, safe and assured.
How do these accounts differ from the sites promoting offline banks and credit unions? Well, for one thing and this is the most important consideration. Those sites serving offline banks and credit unions do not allow account holders to take money out over public or home computers for security reasons but still inconvenient, especially in urgent or emergency situations, although such funds can be transferred into the online banking accounts, again with a 3-4 day waiting period.
Once the clearance time passes, such currency can then be used online or removed via an ATM machine, just like payment that originated online. This would seem to suggest that online banking systems have not only become more common and more popular but even preferable to the alternative.
There is no mystery why then, offline businesses employ the use of online banking systems since general business insists on easy, quickly moving exchanges. Because the average person can also freely engage in such wonderful practices, online banking has rendered walk in banking virtually obsolete. It would be no surprise if all future banking were eventually to be conducted solely over the computer.
Online banking security boost: Credit union shifts to two-factor authentication
Addison Avenue Federal Credit Union, based in Palo Alto, Calif., is taking steps to strengthen its online banking security by implementing two-factor variable-password authentication, becoming one of the few in the industry to do so.
The credit union is encouraging customers to switch from simple password authentication to the far stronger two-factor authentication, which makes use of VeriSign’s handheld token to generate a one-time password. In addition, VeriSign offers applications for the Blackberry or iPhone that can be downloaded to these mobile devices and used to turn a smart phone into a variable-password generator.
While use of the VeriSign variable-password technology won’t be required, it will be encouraged, says Fisher. The credit union, which has 150,000 members, many of them associated with the high-tech industry, will launch the service for free in the roll-out phase but will likely charge for the service down the road. For those using the stronger two-factor authentication, an annual fee of $10 for the service is anticipated, plus $10 for a handheld token. The iPhone and Blackberry applications are available for free.
The credit union is encouraging customers to switch from simple password authentication to the far stronger two-factor authentication, which makes use of VeriSign’s handheld token to generate a one-time password. In addition, VeriSign offers applications for the Blackberry or iPhone that can be downloaded to these mobile devices and used to turn a smart phone into a variable-password generator.
While use of the VeriSign variable-password technology won’t be required, it will be encouraged, says Fisher. The credit union, which has 150,000 members, many of them associated with the high-tech industry, will launch the service for free in the roll-out phase but will likely charge for the service down the road. For those using the stronger two-factor authentication, an annual fee of $10 for the service is anticipated, plus $10 for a handheld token. The iPhone and Blackberry applications are available for free.
Online banking: where the money is?
SYNOPSIS: Online banking services, from everyday checking and savings account transactions to advanced services like mortgages and online trading, are increasingly becoming a hot prospect for Internet portal sites and even cellular operators. However, the enthusiasm has yet to catch on with banking customers, who have been slow to adopt such services.
THEN: The lackluster growth of online banking customers comes down to several factors, with the most obvious and understandable factors being the narrow market base (Internet penetration even in developed markets in Asia being under 35%) and security concerns. Banking customers also fee more comfortable with brick-and-mortar banks (including ATMs), and many aren't even sure if their bank even has online services. There are also regulatory obstacles--online banking is illegal in some markets, while others are just developing the legal framework to deal with online transactions.
NOW: Online banking is by most accounts a mainstream phenomenon in most wired markets. In Asia, growth in online banking in markets like Australia, Hong Kong, Korea. Malaysia, Singapore, Taiwan and Thailand has been rising steadily, according to IDC subsidiary Financial Insights. In many such markets, the online banking population now numbers in the millions--Korea for example boast 16 million--while markets like India and China should see online banking usage grow into the tens of millions in the next few years at a growth rate of 300%. Douglas Jaffe, senior research manager of financial services for Financial Insights Asia/Pacific, goes so far as to say that online banking has become a powerful enough force to shift the shape of the future retail banking landscape as banks increasingly find themselves in a position where the bulk of their costs are tied up in offline channels that serve a shrinking and less profitable customer base. Even so, challenges remain, with security still the chief worry, particularly these days with the rise of "phishing" schemes designed to scam online banking and retail customers out of personal information.
THEN: The lackluster growth of online banking customers comes down to several factors, with the most obvious and understandable factors being the narrow market base (Internet penetration even in developed markets in Asia being under 35%) and security concerns. Banking customers also fee more comfortable with brick-and-mortar banks (including ATMs), and many aren't even sure if their bank even has online services. There are also regulatory obstacles--online banking is illegal in some markets, while others are just developing the legal framework to deal with online transactions.
NOW: Online banking is by most accounts a mainstream phenomenon in most wired markets. In Asia, growth in online banking in markets like Australia, Hong Kong, Korea. Malaysia, Singapore, Taiwan and Thailand has been rising steadily, according to IDC subsidiary Financial Insights. In many such markets, the online banking population now numbers in the millions--Korea for example boast 16 million--while markets like India and China should see online banking usage grow into the tens of millions in the next few years at a growth rate of 300%. Douglas Jaffe, senior research manager of financial services for Financial Insights Asia/Pacific, goes so far as to say that online banking has become a powerful enough force to shift the shape of the future retail banking landscape as banks increasingly find themselves in a position where the bulk of their costs are tied up in offline channels that serve a shrinking and less profitable customer base. Even so, challenges remain, with security still the chief worry, particularly these days with the rise of "phishing" schemes designed to scam online banking and retail customers out of personal information.
ONLINE BANKING: List of Internet Banking Articles, Tips, and Advice for Freelancers
The eventual movement towards online banking was done in the last 10 years due to the need of customers to perform transactions in a safe and quick manner. Online banking or also Internet banking as it’s often referred to allow customers to conduct financial transactions on a secure website operated by the primary branch of a bank. Easy and quick transactions are very important traits to those professionals in the freelancing world.
The following list of links focuses on all of the aspects of online banking from a basic description to security issues:
PC World Online Banking Article
This PC World article explores the risks of online banking and necessary precautions to protect accounts and personal information.
Digital Trends Online Banking Article
This article offers reasons to use online banking as an alternative to the traditional way of banking from the author.
Wikipedia Online Banking Article
This Wikipedia article offers a good general description of online banking with a variety of related links at the bottom of the webpage.
Microsoft Online Banking Article
This 8 page article from Microsoft examines online banking for the small business owner.
Online Banking Report Subscription
This site offers a subscription of online banking updates with a basic subscription rate of $1195 for a single user (1 year) and higher from there.
Online Banking Lesson
This link offers an online lesson to follow that explains what online banking is and reviews the pros and cons of online banking versus traditional banking.
Two-Part Online Banking Article
This link examines the demographics in two parts on online banking in the United States.
Bank of America - Online Banking Articles
This link offers a wide variety of online banking articles developed by Bank of America.
Safe Online Banking Article
This article discusses the safe way to do online banking around the net.
Informedbanking.com Articles
Informed Banking includes online banking and finance topics, banking software and bank technology reviews, as well as accounting software reviews.
MSN Money - Online Banking Article
This MSN – Money article discusses the features to look for in online banking, and the top 10 online banking sites.
Online Banking Reviews
The Star Reviews site does the work, and enables the freelancer to easily compare the best online banks.
About.com on Online Banking
This About.com guide focuses on online banking, with a variety of other article links throughout the webpage.
Allbusiness.com - Online Banking Articles
This link offers a wide variety of related online banking articles throughout its main web page
The following list of links focuses on all of the aspects of online banking from a basic description to security issues:
PC World Online Banking Article
This PC World article explores the risks of online banking and necessary precautions to protect accounts and personal information.
Digital Trends Online Banking Article
This article offers reasons to use online banking as an alternative to the traditional way of banking from the author.
Wikipedia Online Banking Article
This Wikipedia article offers a good general description of online banking with a variety of related links at the bottom of the webpage.
Microsoft Online Banking Article
This 8 page article from Microsoft examines online banking for the small business owner.
Online Banking Report Subscription
This site offers a subscription of online banking updates with a basic subscription rate of $1195 for a single user (1 year) and higher from there.
Online Banking Lesson
This link offers an online lesson to follow that explains what online banking is and reviews the pros and cons of online banking versus traditional banking.
Two-Part Online Banking Article
This link examines the demographics in two parts on online banking in the United States.
Bank of America - Online Banking Articles
This link offers a wide variety of online banking articles developed by Bank of America.
Safe Online Banking Article
This article discusses the safe way to do online banking around the net.
Informedbanking.com Articles
Informed Banking includes online banking and finance topics, banking software and bank technology reviews, as well as accounting software reviews.
MSN Money - Online Banking Article
This MSN – Money article discusses the features to look for in online banking, and the top 10 online banking sites.
Online Banking Reviews
The Star Reviews site does the work, and enables the freelancer to easily compare the best online banks.
About.com on Online Banking
This About.com guide focuses on online banking, with a variety of other article links throughout the webpage.
Allbusiness.com - Online Banking Articles
This link offers a wide variety of related online banking articles throughout its main web page
Does Online Banking Put Your Money at Risk?
Legend has it (incorrectly, it seems) that infamous bank robber Willie Sutton, when asked why banks were his favorite target, responded, "Because that's where the money is."
The modern-day Willie Suttons of the world target bank Web sites for the same reason. With online transactions, money is represented in the form of electronic records of ownership, which means online bank robbers can steal more money, in less time, than by stealing literal currency--and they don't even need a getaway car. But that doesn't mean online banking necessarily has to be a riskier proposition.
"Internet banking is terribly secure," says Brad Adrian, an Internet banking analyst with Gartner. "Financial services providers...make their systems as secure as possible."
But, he says, "unscrupulous people using phishing, keystroke collection, or similar activities" to steal your passwords or account numbers are a growing problem.
Going Phishing
Phishing scams, in which attackers use spoof e-mails and Web sites to lure users into entering personal financial information (such as credit card numbers, bank account information, and passwords), have increased in the last several months. Yet even though public awareness of these scams has grown, people continue to fall victim to them in increasing numbers.
The click-through rate on phishing e-mails is 3 percent, estimates Avivah Litan, vice president and research director at Gartner. That compares with a response rate of about 0.5 percent for spam, he says. One possible reason for this: People take e-mail from their bank very seriously, he says. In part the solution is better customer education, he adds, but banks could also do more to prevent the scams from working in the first place.
Online criminals--including those who phish for a living--have become even more sophisticated, creating fraudulent Web sites and e-mail messages that are harder to detect. Professional phishing criminals even work current events into their attacks to make them seem more realistic: One recent scam, for example, posed as an e-mail soliciting campaign donations.
To combat the growing problem, credit card issuers and financial institutions are experimenting with new technologies to make cards harder to forge and easier for consumers to use.
But some of these attempts might be misguided. For example, some companies are experimenting with so-called contactless payments. An RFID chip embedded in a card would let a customer pay by simply waving the card toward the RFID reader. Still unanswered is the question of whether users would have to either leave their credit cards in the car or enclose them in Mylar (which blocks the radio signals these cards emit), to prevent card data from being stolen while they walked through stores. Next month, card companies and credit card issuing banks will weigh the trade-offs between the convenience of contactless payments and the risks to customers at the Smart Card Alliance Conference.
Protect Yourself
For users trying to assess the security of an online transaction--banking or otherwise--the Public Key Infrastructure group, an industry association that deals with card security, recommends users look at five aspects of the transaction: customer authentication, customer authorization and privacy, security of the purchase data, and nonrepudiation (meaning a customer cannot deny their actions after they click the "buy" button).
Authentication (are the parties to a transaction who they claim to be?) and authorization (does each party have the authority to perform the actions?) can pose major problems for individuals. How can customers be sure they have reached a legitimate bank Web site? And how can the bank make sure the person logging in to your account is really you?
One interesting concept that might partly solve this problem is called "shared secrets." You send a file to the bank, perhaps a photo of your kids. When you log in to the bank Web site, that picture is displayed. If you don't see the picture, you know you've reached the wrong site. The problem, of course, is that you have to type in your user ID and password before seeing the picture. While this verifies the bank's Web site to you, the bank must still make sure it's really you on the other end of the transaction.
To be effective this solution requires a second layer of security. Gartner's Adrian suggests that the customer be required to click on a predetermined area of the picture. Even better, the customer could be required to click on a sequence of areas in a specified order. For example, if you uploaded a photo of your dog, you would click on his nose and then his mouth. Some banks are also looking into using so-called two-factor authentication, where you have to enter two passwords to log on: Your own password, and a "throwaway" password on a scratch-off card the bank sends you in your monthly statement. After you've used the throwaway password, you (or a data thief) can never use it again.
If your online bank doesn't offer this type of security, there are still steps you can take to protect yourself.
Make sure your online banking password is at least six characters long and includes both letters and numbers. Avoid using the same password you use for other sites, and avoid obvious combinations such as your street address or the combination of your first initial and last name. If your institution allows it, create a hard-to-guess user name as well.
If you receive an e-mail allegedly from your bank, never click the link in the e-mail message. Instead, type the URL of your bank right into the browser's Address bar yourself, and forward the e-mail to a known, legitimate bank e-mail address. Chances are excellent that, if you ask the bank if it sent the e-mail you received, you'll find out it didn't.
If you believe you've reached your bank's Web site, check the security certificate before you type in any personal information. In Internet Explorer, select File, Properties and click the Certificate button. The name on the certificate should match your bank's name. Then select View, Privacy Report to see more details about the site's privacy policies.
Most banks insist that you use a browser with at least 128-bit encryption. Also, remember that most Trojan horse viruses are aimed at Internet Explorer. To be extra safe, try using an alternative browser, such as Mozilla, Mozilla Firefox, Opera, or Netscape.
If you have an "always on" Internet connection, never store your online banking information on the PC. Adrian, the Gartner analyst, stores his online passwords in an encrypted area of his PDA. He also suggests using many different passwords, and keeping track of them with the PDA. Of course, you then have to worry about battery life, but in the long run that's less important than an unexpected, precipitous drop in your checking account balance.
The bottom line: Online banking need be no more risky than its offline counterpart, as long as you take the time to protect yourself.
Former Banking sponsors of the Athens 2004 and Sydney 2000 Games have sent messages of congratulations to London 2012 and Lloyds TSB following this we
The sponsors underlined the benefits an association with the Games brought to their business.
Hector P Verykios, who managed Alpa Bank's sponsorship of Athens 2004, said: "We are very proud to have been a Grand National sponsor and the Official Bank of the Athens 2004 Games.
"This was a once-in-a-lifetime experience which has transformed our business like no other opportunity could and will remain unforgettable in the minds of all our employees, clients and shareholders.
"Rarely does a project involve so many staff members from all sectors of the Bank, last more than four years and culminate in just two wonderfully hectic weeks. It was great for our business, for our customers and for the country.
"We would like to wish Lloyds TSB and London 2012 all the best in the years leading to the successful completion of the London 2012 Games.
Noel Purcell from Sydney 2000 sponsor Westpac Bank said: "To be a Games sponsor in your home country brings benefits to customers, staff and shareholders.
"It's the biggest show on earth and a one-off opportunity to be involved in an event that brings joy to billions of people.
"It's the years leading up to the event that makes this sponsorship so unique.
"We were a proud sponsor of the Sydney Games. It was a huge motivator for staff and many of our customers had a wonderful experience.
"I'm sure it will be a great journey for Lloyds TSB and something that will form part of that bank's long history."
Hector P Verykios, who managed Alpa Bank's sponsorship of Athens 2004, said: "We are very proud to have been a Grand National sponsor and the Official Bank of the Athens 2004 Games.
"This was a once-in-a-lifetime experience which has transformed our business like no other opportunity could and will remain unforgettable in the minds of all our employees, clients and shareholders.
"Rarely does a project involve so many staff members from all sectors of the Bank, last more than four years and culminate in just two wonderfully hectic weeks. It was great for our business, for our customers and for the country.
"We would like to wish Lloyds TSB and London 2012 all the best in the years leading to the successful completion of the London 2012 Games.
Noel Purcell from Sydney 2000 sponsor Westpac Bank said: "To be a Games sponsor in your home country brings benefits to customers, staff and shareholders.
"It's the biggest show on earth and a one-off opportunity to be involved in an event that brings joy to billions of people.
"It's the years leading up to the event that makes this sponsorship so unique.
"We were a proud sponsor of the Sydney Games. It was a huge motivator for staff and many of our customers had a wonderful experience.
"I'm sure it will be a great journey for Lloyds TSB and something that will form part of that bank's long history."
Bank Products
Deposits vs. Investments
Any money you have in savings and checking accounts or in certificates of deposit (CDs) is known as a deposit. Your financial institution is committed to returning all of your deposits (plus interest) whenever you ask. You can even take money out of a CD before it matures, however, you will have to pay a penalty for early withdrawal.
Your institution is also required to carry government insurance on your deposits up to $100,000. The insurer is usually the Federal Deposit Insurance Corporation (FDIC). Contact your financial institution if you have specific questions about your insured deposits.
Financial institutions can also provide investment products like mutual funds and annuities to their customers. Your bank or credit union may sell you this type of product, but it is not obligated to pay you back for any losses you may have if the investment is not successful.
Insured Not Insured
Statement Savings Accounts Mutual Funds
Passbook Savings Accounts Annuities
Money Market Deposit Accounts (MMDAs)
Holiday Savings Accounts
Regular Checking Accounts
NOW Accounts
Certificates of Deposits (CDs)
Equally important, the U.S. government does not insure you against investment losses, even if you purchased the product at a bank or credit union.
Investing in a Mutual Fund
When you invest in a mutual fund, your money is put together with the money of other investors and is used to purchase a variety of securities such as stocks, bonds, and other financial instruments.
Mutual funds are run by investment professionals who decide which investments to buy or sell for the fund. Their decisions are guided by the fund's investment goals.
For example, some mutual funds are designed for people who want to have easy access to their money and invest only for a short time. These funds invest primarily in government securities or very short-term bank CDs, where the investment risks are moderate.
Other mutual funds appeal to people who are willing to take on more risk with the goal of a higher return. Such funds invest primarily in corporate or municipal bonds.
Most mutual funds, however, are more diverse, offering a mix of investments. A typical fund portfolio includes between 30 and 300 different stocks, bonds, and other instruments.
Under the law, any institution selling you shares in a mutual fund or annuity must inform you that:
Mutual funds and annuities are not insured by the Federal Deposit Insurance Corporation (FDIC) or guaranteed by the bank or credit union that sells them.
Mutual funds and annuities involve an investment risk, including the possibility of lost principal.
Federal regulations also require that:
Your bank or credit union must tell you if it serves the fund in an advisory capacity.
Banks that sell mutual funds or annuities must clearly distinguish between regular bank teller windows and mutual fund or annuity sales windows.
Employees who accept regular deposits are not allowed to offer investment advice.
Investing in an Annuity
When you buy an annuity, the bank or insurance company invests your money and agrees to pay you back according to the annuity's contract terms. The annuity can be part of a long-term savings plan for retirement. Like mutual funds, they are not insured by the U.S. government or by the bank where you buy them.
Some annuities help you set aside money on a tax-deferred basis. You don't pay taxes on the income earned by this money until you retire. Other annuities allow you to receive income immediately. However, the amount of income you will receive can go up or down with changes in financial markets and the income won't be tax deferred.
With annuities, the annuity contract spells out the terms of your agreement. It will tell you whether or not you can transfer your contract to another company. Also, surrender charges or penalties apply when funds are withdrawn before a designated period of time has passed. Surrender charges can apply from five to ten years or more. You may want to consider meeting with a qualified tax advisor or financial planner to learn more about annuities.
Buying through Your Institution
--------------------------------------------------------------------------------
Consumers should
be aware that
every product sold
by a bank or credit union
is not automatically insured
by the U.S. government.
--------------------------------------------------------------------------------
Not all banks and credit unions sell investment products, but many do. Some simply rent lobby space to outside companies. Other institutions sell what are called proprietary funds, which are sponsored by an outside company but receive investment advice from the institution itself. Private label funds, meanwhile, are sponsored and managed through an outside company but are only sold through one bank or credit union.
Some mutual funds and annuities have names that sound very much like names of financial institutions. But no mutual funds or annuities are insured by either your institution or the U.S. government. As an investor, you should be aware that these funds have different degrees of risk and could possibly lead to a loss of some or all of your principal.
Any money you have in savings and checking accounts or in certificates of deposit (CDs) is known as a deposit. Your financial institution is committed to returning all of your deposits (plus interest) whenever you ask. You can even take money out of a CD before it matures, however, you will have to pay a penalty for early withdrawal.
Your institution is also required to carry government insurance on your deposits up to $100,000. The insurer is usually the Federal Deposit Insurance Corporation (FDIC). Contact your financial institution if you have specific questions about your insured deposits.
Financial institutions can also provide investment products like mutual funds and annuities to their customers. Your bank or credit union may sell you this type of product, but it is not obligated to pay you back for any losses you may have if the investment is not successful.
Insured Not Insured
Statement Savings Accounts Mutual Funds
Passbook Savings Accounts Annuities
Money Market Deposit Accounts (MMDAs)
Holiday Savings Accounts
Regular Checking Accounts
NOW Accounts
Certificates of Deposits (CDs)
Equally important, the U.S. government does not insure you against investment losses, even if you purchased the product at a bank or credit union.
Investing in a Mutual Fund
When you invest in a mutual fund, your money is put together with the money of other investors and is used to purchase a variety of securities such as stocks, bonds, and other financial instruments.
Mutual funds are run by investment professionals who decide which investments to buy or sell for the fund. Their decisions are guided by the fund's investment goals.
For example, some mutual funds are designed for people who want to have easy access to their money and invest only for a short time. These funds invest primarily in government securities or very short-term bank CDs, where the investment risks are moderate.
Other mutual funds appeal to people who are willing to take on more risk with the goal of a higher return. Such funds invest primarily in corporate or municipal bonds.
Most mutual funds, however, are more diverse, offering a mix of investments. A typical fund portfolio includes between 30 and 300 different stocks, bonds, and other instruments.
Under the law, any institution selling you shares in a mutual fund or annuity must inform you that:
Mutual funds and annuities are not insured by the Federal Deposit Insurance Corporation (FDIC) or guaranteed by the bank or credit union that sells them.
Mutual funds and annuities involve an investment risk, including the possibility of lost principal.
Federal regulations also require that:
Your bank or credit union must tell you if it serves the fund in an advisory capacity.
Banks that sell mutual funds or annuities must clearly distinguish between regular bank teller windows and mutual fund or annuity sales windows.
Employees who accept regular deposits are not allowed to offer investment advice.
Investing in an Annuity
When you buy an annuity, the bank or insurance company invests your money and agrees to pay you back according to the annuity's contract terms. The annuity can be part of a long-term savings plan for retirement. Like mutual funds, they are not insured by the U.S. government or by the bank where you buy them.
Some annuities help you set aside money on a tax-deferred basis. You don't pay taxes on the income earned by this money until you retire. Other annuities allow you to receive income immediately. However, the amount of income you will receive can go up or down with changes in financial markets and the income won't be tax deferred.
With annuities, the annuity contract spells out the terms of your agreement. It will tell you whether or not you can transfer your contract to another company. Also, surrender charges or penalties apply when funds are withdrawn before a designated period of time has passed. Surrender charges can apply from five to ten years or more. You may want to consider meeting with a qualified tax advisor or financial planner to learn more about annuities.
Buying through Your Institution
--------------------------------------------------------------------------------
Consumers should
be aware that
every product sold
by a bank or credit union
is not automatically insured
by the U.S. government.
--------------------------------------------------------------------------------
Not all banks and credit unions sell investment products, but many do. Some simply rent lobby space to outside companies. Other institutions sell what are called proprietary funds, which are sponsored by an outside company but receive investment advice from the institution itself. Private label funds, meanwhile, are sponsored and managed through an outside company but are only sold through one bank or credit union.
Some mutual funds and annuities have names that sound very much like names of financial institutions. But no mutual funds or annuities are insured by either your institution or the U.S. government. As an investor, you should be aware that these funds have different degrees of risk and could possibly lead to a loss of some or all of your principal.
Mutual Federal Savings Bank (Muncie, IN)
Mutual Federal Savings Bank (MFSB) is a federally chartered savings bank that offers personal and business banking services. The bank provides deposit products including savings and checking accounts, certificates of deposits, and money market accounts. Its lending products include commercial lines of credit, term loans, credit cards, real estate loans, and home equity loans. Additionally, MFSB offers online banking and bill payment services. It was formerly known as Mutual Home and Savings Association. MFSB was founded in 1889 and is based in Muncie, Indiana with additional offices in Gas City, Albany, North Webster, Marion, Warsaw, Yorktown, and Winchester, Indiana. Mutual Federal Savings ...
Online bank fraud concerns consumers
It's the most unnerving story imaginable for a bank customer -- money disappearing from their account. A mysterious transaction, and no recourse. All the money, simply gone.
The case of Joe Lopez, detailed Tuesday by "NBC Nightly News with Brian Williams," is just one example. Lopez lost $90,000 when an unauthorized wire transfer moved the funds from his small business account to a bank account in Latvia. As a small business account holder, Lopez has fewer rights than consumers would if facing the same situation. But the story highlights increasing concern over the way financial institutions verify just who is moving money around their systems.
Online banking is increasingly popular in the United States. This year, about 55 million people will bank online, according to analyst firm Gartner. But the system is fraught with perils.
Chief among them are phishing e-mails that trick consumers into giving away their bank login information or other personal data. Nearly 2 million consumers said they'd fallen for the trick during one 12-month period, Gartner analyst Avivah Litan said earlier this year. It's not clear how many of them suffered an eventual attack on their online bank accounts, Litan said, but the stolen information is clearly valuable to would-be criminals.
While consumers who do suffer account losses are often refunded the money, there's still paperwork headaches to deal with, and not everyone does recover everything they've lost.
"In most cases, especially those involving credit card fraud, consumers get their money back pretty easily," she said. "But in other cases, like new account fraud or illegal transfers, it's not so simple and consumers often can lose out. They need to be aware of the holes in the system that are more apparent than ever with all the electronic doors into and out of their bank accounts."
Online Banking Security & Internet Fraud
Customers of several UK banks have recently been the target of online banking fraud that uses ‘spoof’ (also known as phishing or hoaxing) emails. Although difficult to recognise, they generally ask customers to click on a link to a counterfeit copy of their website and encourage them to provide, update or confirm sensitive personal information or passwords.
Please ensure that you always access the Abbey International website by typing the exact domain name (www.abbeyinternational.com). Never enter a banking site via another link and disclose your log in details.
To keep up to date with latest scams, and for further information, visit:
www.banksafeonline.org.uk
www.getsafeonline.org.uk
www.cifas.org.uk
Please remember, Abbey International will never send you an email asking you to enter your full personal, security or card details - not even to warn you about fraudulent emails asking for account validation ‘to prevent fraud’. In addition, we will never ask you to tell us your passwords by email, fax, or letter. However you contact us, we will never ask for your full password – only a part of it.
If you think you have revealed your security details in any way, or if you receive any suspicious looking emails, please contact us immediately.
'Pharming'
'Phishing' uses links that appear to be legitimate but actually take you somewhere else. 'Pharming' hijacks the domain name so that even if you are a 'phishing'-aware user who specifically types in the website you want (e.g.www.bbc.co.uk), you will still end up at a different website.
To help defeat 'pharming', you need to check the SSL (secure sockets layer), which provides you with a secure and private connection. When you log in to the Internet Banking Service, double-click the padlock symbol at the bottom of your browser to ensure the site certificate is valid and belongs to Abbey International. As long as the padlock symbol is there and is issued to Abbey International, you are not at any risk from online banking fraud.
Trojans
A trojan is a malicious file, usually disguised as something useful but, when activated, can cause loss, damage or even theft of data.
The critical difference between a trojan and a virus is that a trojan cannot replicate itself. The only way that it can spread is if you help it, typically by opening an email attachment, or downloading from the internet.
Once you open this file, the trojan goes to work destroying your computer's functionality – possibly recording your logging in details. A good line of defence is not to accept files from someone you don't know, and if you have any doubts, then do not open the file.
Please ensure that you always access the Abbey International website by typing the exact domain name (www.abbeyinternational.com). Never enter a banking site via another link and disclose your log in details.
To keep up to date with latest scams, and for further information, visit:
www.banksafeonline.org.uk
www.getsafeonline.org.uk
www.cifas.org.uk
Please remember, Abbey International will never send you an email asking you to enter your full personal, security or card details - not even to warn you about fraudulent emails asking for account validation ‘to prevent fraud’. In addition, we will never ask you to tell us your passwords by email, fax, or letter. However you contact us, we will never ask for your full password – only a part of it.
If you think you have revealed your security details in any way, or if you receive any suspicious looking emails, please contact us immediately.
'Pharming'
'Phishing' uses links that appear to be legitimate but actually take you somewhere else. 'Pharming' hijacks the domain name so that even if you are a 'phishing'-aware user who specifically types in the website you want (e.g.www.bbc.co.uk), you will still end up at a different website.
To help defeat 'pharming', you need to check the SSL (secure sockets layer), which provides you with a secure and private connection. When you log in to the Internet Banking Service, double-click the padlock symbol at the bottom of your browser to ensure the site certificate is valid and belongs to Abbey International. As long as the padlock symbol is there and is issued to Abbey International, you are not at any risk from online banking fraud.
Trojans
A trojan is a malicious file, usually disguised as something useful but, when activated, can cause loss, damage or even theft of data.
The critical difference between a trojan and a virus is that a trojan cannot replicate itself. The only way that it can spread is if you help it, typically by opening an email attachment, or downloading from the internet.
Once you open this file, the trojan goes to work destroying your computer's functionality – possibly recording your logging in details. A good line of defence is not to accept files from someone you don't know, and if you have any doubts, then do not open the file.
Banking on a first-name basis
Recently I opened a new checking account to get free money from the bank. Since I had the option to give the account a name I called it "Home," as in "a home of my own."
Did that really make a difference?
You bet it did. When I look at the account I get a mental picture of a bungalow with a southern exposure that will let me grow vegetables. This inspires me to think about other ways to pile money into the Home account: manufacturer's rebates, cash from occasional babysitting gigs, the $50 bonus I'm getting for filling a vacancy at the apartment building I manage.
In other words, it got me fired up. I've even started picking up soda cans on my daily walks. Prices for recycled aluminum are currently low so I'm getting only a dollar or two per week. But the longest journey begins with a single step, right? And since this new checking account came with a $100 bonus, I figure I'm already $100 ahead. (Yes, I know I will owe income tax on the bonus. It's still pretty good pay for the few minutes it took me to open the account.)
The money won't actually stay in the account, mind you. I'm going to transfer it to an online bank account to earn at least a little bit of interest.
Some readers of the Smart Spending message board play the name game, too. "Sjprof" has an account named "Kitty" for future veterinary expenses and "Zoom" for a car; the "Sabbatical" account will, with luck, allow the prof to take a year away from academia. "Hootieman" has a retirement account named "Freedom."
Reader "SC CDF" suggests a further refinement: Create passwords for these accounts to reinforce your goal. For example, set your Home account's password to include the zip code of the neighborhood in which you'd like to live some day.
A woman posting as "Lynn D" has funds named "Contingency" (aka the emergency fund), "Vacation," "Freedom Account" (infrequent expenses such as car registration or insurance), "New Car Fund" and "Home Down Payment Fund." Some of these can't be labeled online but she labels them on spreadsheets.
"I think if I had just one account with no nicknames it would be easy for me to spend that money," she writes, "because it's not tied to a specific goal."
How about it, readers? Do you name your accounts, and does this help you envision specific goals? Post your comments below or on this message board thread.
Did that really make a difference?
You bet it did. When I look at the account I get a mental picture of a bungalow with a southern exposure that will let me grow vegetables. This inspires me to think about other ways to pile money into the Home account: manufacturer's rebates, cash from occasional babysitting gigs, the $50 bonus I'm getting for filling a vacancy at the apartment building I manage.
In other words, it got me fired up. I've even started picking up soda cans on my daily walks. Prices for recycled aluminum are currently low so I'm getting only a dollar or two per week. But the longest journey begins with a single step, right? And since this new checking account came with a $100 bonus, I figure I'm already $100 ahead. (Yes, I know I will owe income tax on the bonus. It's still pretty good pay for the few minutes it took me to open the account.)
The money won't actually stay in the account, mind you. I'm going to transfer it to an online bank account to earn at least a little bit of interest.
Some readers of the Smart Spending message board play the name game, too. "Sjprof" has an account named "Kitty" for future veterinary expenses and "Zoom" for a car; the "Sabbatical" account will, with luck, allow the prof to take a year away from academia. "Hootieman" has a retirement account named "Freedom."
Reader "SC CDF" suggests a further refinement: Create passwords for these accounts to reinforce your goal. For example, set your Home account's password to include the zip code of the neighborhood in which you'd like to live some day.
A woman posting as "Lynn D" has funds named "Contingency" (aka the emergency fund), "Vacation," "Freedom Account" (infrequent expenses such as car registration or insurance), "New Car Fund" and "Home Down Payment Fund." Some of these can't be labeled online but she labels them on spreadsheets.
"I think if I had just one account with no nicknames it would be easy for me to spend that money," she writes, "because it's not tied to a specific goal."
How about it, readers? Do you name your accounts, and does this help you envision specific goals? Post your comments below or on this message board thread.
Justin's Banking / Loans Blog
Are You a Rate Chaser?
Rate chasers move money from bank to bank earning the best rates available.
While it's normal to switch for better rates, true rate chasers are fanatical about how much they earn and they switch frequently. They know which bank pays the most, and they'll move for a quarter percent APY.
Does it make sense to work that hard? It depends on how much you have and what your time is worth. Large balances make the endeavor more attractive. However, there are pitfalls. For example, your money might not earn anything for a few days while moving from bank to bank.
A good rate chaser knows about the tradeoffs and how to structure transfers to lose as little interest as possible. Are you one of these people? Tell us how you finally came to admit you're a rate chaser.
Rate chasers move money from bank to bank earning the best rates available.
While it's normal to switch for better rates, true rate chasers are fanatical about how much they earn and they switch frequently. They know which bank pays the most, and they'll move for a quarter percent APY.
Does it make sense to work that hard? It depends on how much you have and what your time is worth. Large balances make the endeavor more attractive. However, there are pitfalls. For example, your money might not earn anything for a few days while moving from bank to bank.
A good rate chaser knows about the tradeoffs and how to structure transfers to lose as little interest as possible. Are you one of these people? Tell us how you finally came to admit you're a rate chaser.
The Bank Group's financial
The Bank Group's financial products range from investment and development policy loans to governments to loans for small and medium-sized enterprises. Our private sector investment arm, the International Finance Corporation (IFC), promotes private sector growth in developing countries through direct lending, equity investments and syndicated lending. The IFC can also help identify investment opportunities for potential foreign investors. See Financing for details on all of our lending operations, information on how to obtain loans, and how to access the extensive range of financial services offered.
savings and loan association
savings and loan association (or "S&L"), also known as a thrift, is a financial institution that specializes in accepting savings deposits and making mortgage and other loans. The S&L or thrift term is mainly used in the United States; similar institutions in the United Kingdom, Ireland and some Commonwealth countries include building societies and trustee savings banks.
They are often mutually held (often called mutual savings banks[citation needed]), meaning that the depositors and borrowers are members with voting rights, and have the ability to direct the financial and managerial goals of the organization, similar to the policyholders of a mutual insurance company. It is possible for an S&L to be a joint stock company and even publicly traded. However, this means that it is no longer truly an association, and depositors and borrowers no longer have managerial control.
By law, thrifts must have at least 65 percent of their lending in mortgages and other consumer loans — making them particularly vulnerable to housing downturns such as the deep one the U.S. has experienced since 2007.
They are often mutually held (often called mutual savings banks[citation needed]), meaning that the depositors and borrowers are members with voting rights, and have the ability to direct the financial and managerial goals of the organization, similar to the policyholders of a mutual insurance company. It is possible for an S&L to be a joint stock company and even publicly traded. However, this means that it is no longer truly an association, and depositors and borrowers no longer have managerial control.
By law, thrifts must have at least 65 percent of their lending in mortgages and other consumer loans — making them particularly vulnerable to housing downturns such as the deep one the U.S. has experienced since 2007.
Abbey, Alliance & Leicester and Bradford & Bingley to be rebranded Santander
The banks will be renamed by the end of 2010, the Spanish bank said on Wednesday.
Abbey and the B&B's savings business, bought by Santander in 2004 and 2008 respectively, will be the first to go, between January and March next year. A&L will follow later in 2010. The banks' names date back as far as 1851.
However, the Spanish bank it will begin introducing the Santander brand this year, by changing over Abbey credit cards under the group name, as well as the commercial and corporate banking arms of Abbey and A&L, which include 20 regional banking centres.
Antonio Horta-Osorio, chief executive of Santander's UK business, said customers would benefit from access to all of the group's 1,300-branch network after the rebrand is complete.
Santander is spending £12m on the rebranding, although it is aiming to save £180m from integrating the three businesses.
Around 1,900 jobs have already gone as part of its efforts to combine the acquired banks.
Mr Horta-Osorio said customer feedback had shown support for the Santander brand in the UK.
"Customers trust us as a global brand and they feel very safe about their savings," he said.
"It's important for customers who travel around the UK to have 1,300 branches to transact with - and they will have the same product and the same people facing them in the branches," he said.
Santander has expanded aggressively in the UK over the past five years, using the banking crisis as an opportunity to buy up struggling rivals.
The group is now the UK's second biggest mortgage lender and third largest savings bank following last year's dramatic move to snap up the savings and branch operation of collapsed B&B in October, just a month after its rescue takeover of A&L.
The Government nationalised B&B's £50bn loan book, which remains in State ownership and is unaffected by the Santander rebrand.
Santander has emerged relatively unscathed from the financial turmoil, picking up swathes of savers searching for safety.
It said earlier this year that Abbey's annual pre-tax profits lifted by more than a fifth to £991m, due largely to the boom in savings business.
Credit cards will be offered to new customers under the Santander brand from next month.
But the group said specialist brands will retain their existing names, including internet bank Cahoot, Cater Allen, James Hy, and Abbey for Intermediaries, as well as the international businesses of all three acquired banks.
Santander has 25m customers in the UK and employs 23,000 staff.
It was founded in 1857 and has since grown to become a global business with operations in 40 countries and a 170,000-strong workforce
Alliance & Leicester Commercial Bank
Company Overview
Alliance & Leicester Commercial Bank offers personal and business banking services. The bank provides deposit products including savings and checking accounts; loan products such as credit cards and personal loans; and online banking services. The bank was founded in 2003 and is based in Bootle, United Kingdom. Alliance & Leicester Commercial Bank operates as a subsidiary of Alliance & Leicester PLC.
Bridle Road
Bootle, GIR 0AA
United Kingdom
Founded in 2003
Phone:
44 1519 288 181
Fax:
44 1519 662 009
www.alliance-leicestercommercialbank.co.uk
Key Executives
Mr. Alex Smith
Senior Product Manager for Business Banking Marketing
Mr. Steve Luty
Head of Business Centre Network
Mr. David Bell
Head of South West Business Centre
Mr. Adam Williams
Head of Global Infrastructure
Mr. John Graham
Head of Development Property Finance
Age: 53 Compensation as of Fiscal Year 2009.
Key developments for Alliance & Leicester Commercial Bank
Alliance & Leicester Commercial Bank Launches Enhanced Current Account
06/11/2009
Alliance & Leicester Commercial Bank has launched its Free Business Current Account, an improved current account offer for small businesses with a turnover of up to GBP 1 million. The company said that in addition to free day-to-day banking and free cash deposits, the Free business current account will now also offer an in-credit interest rate of 6% AER (5.85% gross) fixed for the first year, on balances up to GBP 2,500. The account is available immediately and small business owners can apply at any Alliance & Leicester branch. The Free Business Current Account, which is recognized as offering the best value for small businesses, is now even better providing a real return on surplus funds in the account. In the current economic climate, it is more important than ever, that business owners review all costs including their banking arrangements in order to ensure that they are operating as efficiently as possible.
Alliance & Leicester Commercial Bank Unveils New 12-Month Business Bond
06/9/2009
Alliance & Leicester Commercial Bank has launched a new limited edition 12-month fixed rate business bond, available to businesses with a turnover of up to £1 million. The new bond has a fixed interest rate of 3.20% gross pa/AER and matures on July 1, 2010. This new business bond is available for business savings of between £50,000 and £2 million.
Alliance & Leicester Launches Prepaid Card Scheme for Housing Benefit Claimants
08/18/2008
Alliance & Leicester Commercial Bank is rolling out a prepaid card payments solution for local authorities in the wake of the government's scheme to transfer payment of housing benefit to claimants, as opposed to their landlords. The prepaid card scheme will allow local authorities to save up to 75% of their processing costs for the payment of housing benefits, as well as remove the-on average-10% charge to the recipients when converting checks to cash. The prepaid card solution is particularly aimed at the 800,000 UK citizens who receive housing benefit, while being classified as unbanked. The card aims at not only supporting the local authority in its efforts towards financial inclusivity for all recipients, but also seeks to improve efficiency and increase the services that can be offered to the unbanked benefit claimant through advanced functionality.
Alliance & Leicester Commercial Bank offers personal and business banking services. The bank provides deposit products including savings and checking accounts; loan products such as credit cards and personal loans; and online banking services. The bank was founded in 2003 and is based in Bootle, United Kingdom. Alliance & Leicester Commercial Bank operates as a subsidiary of Alliance & Leicester PLC.
Bridle Road
Bootle, GIR 0AA
United Kingdom
Founded in 2003
Phone:
44 1519 288 181
Fax:
44 1519 662 009
www.alliance-leicestercommercialbank.co.uk
Key Executives
Mr. Alex Smith
Senior Product Manager for Business Banking Marketing
Mr. Steve Luty
Head of Business Centre Network
Mr. David Bell
Head of South West Business Centre
Mr. Adam Williams
Head of Global Infrastructure
Mr. John Graham
Head of Development Property Finance
Age: 53 Compensation as of Fiscal Year 2009.
Key developments for Alliance & Leicester Commercial Bank
Alliance & Leicester Commercial Bank Launches Enhanced Current Account
06/11/2009
Alliance & Leicester Commercial Bank has launched its Free Business Current Account, an improved current account offer for small businesses with a turnover of up to GBP 1 million. The company said that in addition to free day-to-day banking and free cash deposits, the Free business current account will now also offer an in-credit interest rate of 6% AER (5.85% gross) fixed for the first year, on balances up to GBP 2,500. The account is available immediately and small business owners can apply at any Alliance & Leicester branch. The Free Business Current Account, which is recognized as offering the best value for small businesses, is now even better providing a real return on surplus funds in the account. In the current economic climate, it is more important than ever, that business owners review all costs including their banking arrangements in order to ensure that they are operating as efficiently as possible.
Alliance & Leicester Commercial Bank Unveils New 12-Month Business Bond
06/9/2009
Alliance & Leicester Commercial Bank has launched a new limited edition 12-month fixed rate business bond, available to businesses with a turnover of up to £1 million. The new bond has a fixed interest rate of 3.20% gross pa/AER and matures on July 1, 2010. This new business bond is available for business savings of between £50,000 and £2 million.
Alliance & Leicester Launches Prepaid Card Scheme for Housing Benefit Claimants
08/18/2008
Alliance & Leicester Commercial Bank is rolling out a prepaid card payments solution for local authorities in the wake of the government's scheme to transfer payment of housing benefit to claimants, as opposed to their landlords. The prepaid card scheme will allow local authorities to save up to 75% of their processing costs for the payment of housing benefits, as well as remove the-on average-10% charge to the recipients when converting checks to cash. The prepaid card solution is particularly aimed at the 800,000 UK citizens who receive housing benefit, while being classified as unbanked. The card aims at not only supporting the local authority in its efforts towards financial inclusivity for all recipients, but also seeks to improve efficiency and increase the services that can be offered to the unbanked benefit claimant through advanced functionality.
9 Reasons You Need An Online High-Yield Savings Account
Do you have an online high-yield savings account? If you don’t you need one!
Here’s why:
■Brick and Mortar Interest Sucks - I just checked the interest rate on my savings with the bank I do my checking with. Ready? 0.20% APY! It used to be that banks would offer a decent interest rate on savings to get you store your money with them; not quite the case anymore!
■Many Online High Yield Savings Accounts Offer Better Interest – I use ING Direct for my online savings. Currently they are offering 2.4% APY on their savings accounts. No, you won’t be Bill Gates rich with that rate but it is MUCH better than what the average brick and mortar bank offers. For me that’s 2.2% better than the bank where I do checking!! If you do a little research you’ll find banks with higher interest on their online savings than ING Direct. Let me tell you, that interest adds up! I love seeing how much I’ve earned every month and at the end of the year.
■Automatic Savings – Most online banks will let you set up automatic savings. What this does is pull a set amount at whatever time you set up to be pulled into your online savings account. This could be from your checking account or even from your paycheck if it’s direct deposit. Why automatic savings? So you don’t have the opportunity to spend the money first then try to save! Even if it’s a small amount it will add up over time (and that money earns interest and so on…).
■Bill Pay – Some online banks offer the ability to pay your bills from the site. Another option is using your routing and account numbers to set your account up to pay from on the site you have a bill with. For instance, we set up our car payment to pull from our online savings account. This way we don’t have to worry about having enough in our checking to cover the bill every month (we have more than enough in our savings to cover this). Yes, you can do this from a checking account as well but the money you need to keep there won’t be earning interest in the meantime.
■Out of Sight, Out of Mind – In a lot of brick and mortar accounts your checking and savings are accessible from an ATM. Falling short of funds in checking? Pull it outta savings. I don’t have access to my online savings at an ATM. As a result I don’t have that money staring at me every time I need an ATM. My savings stays saved!
■Relatively Easy to Access – So I can’t pull my savings from an ATM. That’s ok. If I should ever need it then I can have my money transferred to my checking in a few days or so. The money is still pretty easy to get should I need it but not so easy that I could take the savings for an impulse buy!
■Use of Sub-Accounts/Multiple Accounts – With ING Direct you can set up multiple accounts under one customer number. Wanna save for a new car? Create another account just for that purpose. Wanna show your child about the power of saving and compound interest? Set up an account for her to put gift money in. In fact you can set up automatic savings for any account as well. When my wife and I were engaged we set up an account to help save up for the wedding. The options are limitless!
■Great spot for Emergency Savings – Some might say online savings isn’t liquid enough for emergency savings. I say it depends. For us it’s a great place to stash emergency funds which will also earn interest!
■Great Customer Service – This one depends on who you use for your accounts. Again, we have been using ING Direct for their high-yield savings for years. Every time I’ve called I’ve gotten friendly, helpful people who were able to answer my questions and handle my needs without any problems. That’s a huge reason why we haven’t switched our account somewhere else with slightly higher rates. Knowing that my bank can handle any issue I have without being on hold for half an hour is important to me.
Online Savings Accounts
In the past few years, there's been quite an increase in direct-to-consumer banking, and in particular online savings accounts: FDIC-insured bank accounts that are accessed entirely online (money is typically moved in and out by electronic bank transfer to and from a traditional bank). Some of these are from online-only banks; others are online initiatives of established brick-and-mortar banks. They often pay higher interest rates than conventional savings accounts, due partly to lower expenses, and partly to the more rate-sensitive nature of the online market.
This article aims to give a short overview of the history and current state of the industry.
--------------------------------------------------------------------------------
Note: This article is very U.S.-centric; sorry to the non-Americans!
1995-2000: The online-banking stone age
It's worth briefly mentioning the rise of online banking in the 1990s as background. As the internet began to become popular amongst the general public, banks began offering online access to their accounts. This led some entrepreneurs to think: Many people are doing much of their banking through a combination of ATMs, checkwriting, and the internet, and you don't need branches for any of that. So, a slew of online-only banks was founded amidst the dot-com euphoria (many, as you might guess, no longer exist; anyone remember CompuBank?). These banks typically offered a similar range of products to traditional banks, and indeed tried to play up their similarity with "real" banks. To hook consumers, they typically offered lower fees and higher interest rates, but only a limited number of consumers were interested.
Fall 2000: ING Direct
In the fall of 2000, Dutch banking giant ING launched a different, and ultimately more successful, take on online-only banking with ING Direct. Rather than an online analog to a brick-and-mortar bank (ING was already a brick-and-mortar bank), ING Direct was (and is) a simple, no-frills savings account paying a high rate of interest, but with no checks, no ATM cards, and basically no other services besides an account in which to park money. Customers are expected to have a local checking account they use for their normal banking, and then transfer money between that account and ING Direct via ACH (automated clearing house, a system of electronic bank-to-bank transfers that typically takes 2-5 days). Somewhat notably, they didn't skimp on customer service--they reportedly have had good email and phone customer service, and now in some parts of the country they have a strange network of brick-and-mortar locations that provide in-person customer service but aren't bank branches, the ING Direct Cafés.
2003-present: More competition
ING Direct was without direct competition for its first three years, but now there are quite a few others offering essentially the same account, including some online-only banks (who arguably should've been the first ones on this bandwagon). I'll mention only a few of the more notable ones.
The next major entrant after ING was in fact an online-only bank, VirtualBank. It had been founded in the late 1990s as the online analog to high-class private banking, aimed at newly-wealthy techies. In mid-2003, they repositioned themselves and offered an account virtually identical to ING Direct's, which they called eMoneyMarket, and which followed the same strategy of no frills and high interest rates (the "money market" here means a money-market deposit account, which is FDIC-insured and basically a savings account; not to be confused with money-market funds, which are a different beast). Being a new entrant, they typically paid a few tenths of a percentage point higher interest than ING Direct, and so gained some customers.
The market expanded rapidly through 2003 and 2004, and a bunch of others began to open similar accounts by 2005. Emigrant Direct, the online initiative of a one-branch local New York City bank (so basically an online-only bank), caused a bit of a stir in January 2005 when they launched a 3.00% APY account at a time when the next-highest rates were 2.25%. HSBC, a global banking giant, entered the online-savings market with HSBC Direct in March 2005. This is an interesting variation, because it adds back in one frill: ATM cards that can be used at HSBC's brick-and-mortar locations worldwide, with very low currency-exchange costs--an interesting attempt to turn their large global network of branches into an asset even in the online-banking world.
Links to more information
BankRate.com seems to have become the canonical site to look up interest rates on. It doesn't have a specific section for online accounts, but you can search for rates on "MMAs" (money-market accounts) in the "checking & savings" section. It's useful to get an idea of what's out there, but beware of simply picking the highest rate that comes back in your search and signing up.
The Fatwallet.com forums are one of the best sources of information, and include some very long threads discussing many of these accounts. As with any forum it takes a huge amount of digging and reading to get the good information, but for raw information it's hard to beat. A good place to start is the Best Current APRs thread, which also links to a bunch of individual threads on specific banks.
I maintain a fairly bare-bones site at pfstuff.com, summarizing the interest rates and pros/cons of accounts that offer good rates but don't have any fees, minimums, or other strange requirements. I've also collected some information on the sign-up bonuses some banks offer, and pieced together enough information to plot historical graphs of various banks' interest rates.
This article aims to give a short overview of the history and current state of the industry.
--------------------------------------------------------------------------------
Note: This article is very U.S.-centric; sorry to the non-Americans!
1995-2000: The online-banking stone age
It's worth briefly mentioning the rise of online banking in the 1990s as background. As the internet began to become popular amongst the general public, banks began offering online access to their accounts. This led some entrepreneurs to think: Many people are doing much of their banking through a combination of ATMs, checkwriting, and the internet, and you don't need branches for any of that. So, a slew of online-only banks was founded amidst the dot-com euphoria (many, as you might guess, no longer exist; anyone remember CompuBank?). These banks typically offered a similar range of products to traditional banks, and indeed tried to play up their similarity with "real" banks. To hook consumers, they typically offered lower fees and higher interest rates, but only a limited number of consumers were interested.
Fall 2000: ING Direct
In the fall of 2000, Dutch banking giant ING launched a different, and ultimately more successful, take on online-only banking with ING Direct. Rather than an online analog to a brick-and-mortar bank (ING was already a brick-and-mortar bank), ING Direct was (and is) a simple, no-frills savings account paying a high rate of interest, but with no checks, no ATM cards, and basically no other services besides an account in which to park money. Customers are expected to have a local checking account they use for their normal banking, and then transfer money between that account and ING Direct via ACH (automated clearing house, a system of electronic bank-to-bank transfers that typically takes 2-5 days). Somewhat notably, they didn't skimp on customer service--they reportedly have had good email and phone customer service, and now in some parts of the country they have a strange network of brick-and-mortar locations that provide in-person customer service but aren't bank branches, the ING Direct Cafés.
2003-present: More competition
ING Direct was without direct competition for its first three years, but now there are quite a few others offering essentially the same account, including some online-only banks (who arguably should've been the first ones on this bandwagon). I'll mention only a few of the more notable ones.
The next major entrant after ING was in fact an online-only bank, VirtualBank. It had been founded in the late 1990s as the online analog to high-class private banking, aimed at newly-wealthy techies. In mid-2003, they repositioned themselves and offered an account virtually identical to ING Direct's, which they called eMoneyMarket, and which followed the same strategy of no frills and high interest rates (the "money market" here means a money-market deposit account, which is FDIC-insured and basically a savings account; not to be confused with money-market funds, which are a different beast). Being a new entrant, they typically paid a few tenths of a percentage point higher interest than ING Direct, and so gained some customers.
The market expanded rapidly through 2003 and 2004, and a bunch of others began to open similar accounts by 2005. Emigrant Direct, the online initiative of a one-branch local New York City bank (so basically an online-only bank), caused a bit of a stir in January 2005 when they launched a 3.00% APY account at a time when the next-highest rates were 2.25%. HSBC, a global banking giant, entered the online-savings market with HSBC Direct in March 2005. This is an interesting variation, because it adds back in one frill: ATM cards that can be used at HSBC's brick-and-mortar locations worldwide, with very low currency-exchange costs--an interesting attempt to turn their large global network of branches into an asset even in the online-banking world.
Links to more information
BankRate.com seems to have become the canonical site to look up interest rates on. It doesn't have a specific section for online accounts, but you can search for rates on "MMAs" (money-market accounts) in the "checking & savings" section. It's useful to get an idea of what's out there, but beware of simply picking the highest rate that comes back in your search and signing up.
The Fatwallet.com forums are one of the best sources of information, and include some very long threads discussing many of these accounts. As with any forum it takes a huge amount of digging and reading to get the good information, but for raw information it's hard to beat. A good place to start is the Best Current APRs thread, which also links to a bunch of individual threads on specific banks.
I maintain a fairly bare-bones site at pfstuff.com, summarizing the interest rates and pros/cons of accounts that offer good rates but don't have any fees, minimums, or other strange requirements. I've also collected some information on the sign-up bonuses some banks offer, and pieced together enough information to plot historical graphs of various banks' interest rates.
Chase Online Banking
Chase Online Banking gives the account holders of the Chase Bank greater personal financial control and convenient banking. This facility can be availed by the customers at all times. In addition, this twenty four hour banking service can be accessed from any where right from home to the work station premises provided the customer has a personal computer along with a secured Internet connection. Chase Online Banking account holders can get hold of all the Online services provided by the Chase Bank. This Online banking facility entitles a customer of the bank to access and view his/her
savings account
checking account
credit card
mortgages
loans for the automobiles Now, let us see some of the services offered by the Chase Online Banking :-
Bills can be paid by the customer through the Internet from anywhere (home or work place or road) provided he/she has a PC along with online connectivity in it. This process is known as Online Bill Payment.
The already cleared checks known as the canceled ones can be viewed by the customers through Online. The image of such canceled checks can not only be viewed but can also be saved online or directly be printed out of the online site. This helps the person from the accumulation of the papers. At the same time, this facility is fast in this supersonic competitive age. Subscribing for this service attracts no additional fees or charges. All the account holders of savings or checking accounts are entitled to such viewing, saving and printing of the images of the checks.
Alerts of different kinds can also be set by the account holders for reminding them of certain situations or positions of their accounts. These alerts come handy to the customers for making their accounts a bit more secure. The customer can get hold of Security Alerts of Chase Online Banking for avoiding the fraudulent practices routed through online channels. Not only this, the free alerts are also available for reminding certain important bank account related positions such as due date of certain payment, present transaction, outstanding payment particulars, etc.
Chase Online Banking also provides its revered customers with the online generation of the statements. The paper statements cause certain problems for the account holders through stacking up. But with the online generation of the same are much more convenient to manage. At the same time they are very much valid as documents. The customer then only needs to take out a print out of the same directly from the online site. The online statements come in PDF format and can be accessed by the customer at any point of time of the day. These pdf format online statements can also be saved in th personal computers for further references.
A unique guaranteed payment option offered by the Chase Online Banking is called as Overnight Check. It helps its customers in making payments at the last minute.
The ATM service provided by the Chase Online Banking is one of the fastest and one of the most secured ones. These ATM transactions can be accessed through online channels besides the normal ones.
To get hold of all these facilities, the account holder needs to enroll himself/herself for the same. After this the services they are meant to get are :-
The customers can view all the present and historical transaction details (for the past three months) of his/her own account. These transaction details can also be downloaded to the personal computer of the account holder. This downloaded material can also be printed if it is required in any type of the documentation.
The customer of the Chase Online Banking are privileged to send the requisite funds to any account of any US bank which in itself is a USP for the Chase Bank because of its rarity.
The account holders are able to transfer money from one deposit account to the other within the Chase Online Banking.
Checks can be reordered by the clients.
The payments made through the paper checks can be stopped.
All possible types of transactions can be searched on the basis of date and amount of money.
Chase Online Banking provides the accounts of the account holders with all sorts of security. The online service gives its account holders with the flexibility and convenience to manage their own accounts. It also offers the facility of depicting the account with a nickname so that the customers are able to easily identify their own account. The customers of the bank can also enquire from the online bank help desk. They can also log on to the website for viewing the frequently asked questions. Customer service of Chase Online Banking can be accessed its banking customers through email facilities. The security services include a guaranteed payment option which assures the customers to feel secured with their money. The bank assures them that in case of any type of unauthorized utilization of the deposit account of the customer the bank remains liable to square off all the replaced amount from the account. Thus, the guarantee is 100%. But certain restrictions are also attached for availing this 100% guarantee option, such as
The customer has to report such snag within two days of occurrence of the problem.
The customer should close the system completely before leaving the computer, otherwise it becomes easier for the thief to do all the nuisance and consequently siphon off the money from the account holder's account.
The customer is required to take extra pre-caution in maintaining the secrecy of the identification number and password of the concerned account holder.
savings account
checking account
credit card
mortgages
loans for the automobiles Now, let us see some of the services offered by the Chase Online Banking :-
Bills can be paid by the customer through the Internet from anywhere (home or work place or road) provided he/she has a PC along with online connectivity in it. This process is known as Online Bill Payment.
The already cleared checks known as the canceled ones can be viewed by the customers through Online. The image of such canceled checks can not only be viewed but can also be saved online or directly be printed out of the online site. This helps the person from the accumulation of the papers. At the same time, this facility is fast in this supersonic competitive age. Subscribing for this service attracts no additional fees or charges. All the account holders of savings or checking accounts are entitled to such viewing, saving and printing of the images of the checks.
Alerts of different kinds can also be set by the account holders for reminding them of certain situations or positions of their accounts. These alerts come handy to the customers for making their accounts a bit more secure. The customer can get hold of Security Alerts of Chase Online Banking for avoiding the fraudulent practices routed through online channels. Not only this, the free alerts are also available for reminding certain important bank account related positions such as due date of certain payment, present transaction, outstanding payment particulars, etc.
Chase Online Banking also provides its revered customers with the online generation of the statements. The paper statements cause certain problems for the account holders through stacking up. But with the online generation of the same are much more convenient to manage. At the same time they are very much valid as documents. The customer then only needs to take out a print out of the same directly from the online site. The online statements come in PDF format and can be accessed by the customer at any point of time of the day. These pdf format online statements can also be saved in th personal computers for further references.
A unique guaranteed payment option offered by the Chase Online Banking is called as Overnight Check. It helps its customers in making payments at the last minute.
The ATM service provided by the Chase Online Banking is one of the fastest and one of the most secured ones. These ATM transactions can be accessed through online channels besides the normal ones.
To get hold of all these facilities, the account holder needs to enroll himself/herself for the same. After this the services they are meant to get are :-
The customers can view all the present and historical transaction details (for the past three months) of his/her own account. These transaction details can also be downloaded to the personal computer of the account holder. This downloaded material can also be printed if it is required in any type of the documentation.
The customer of the Chase Online Banking are privileged to send the requisite funds to any account of any US bank which in itself is a USP for the Chase Bank because of its rarity.
The account holders are able to transfer money from one deposit account to the other within the Chase Online Banking.
Checks can be reordered by the clients.
The payments made through the paper checks can be stopped.
All possible types of transactions can be searched on the basis of date and amount of money.
Chase Online Banking provides the accounts of the account holders with all sorts of security. The online service gives its account holders with the flexibility and convenience to manage their own accounts. It also offers the facility of depicting the account with a nickname so that the customers are able to easily identify their own account. The customers of the bank can also enquire from the online bank help desk. They can also log on to the website for viewing the frequently asked questions. Customer service of Chase Online Banking can be accessed its banking customers through email facilities. The security services include a guaranteed payment option which assures the customers to feel secured with their money. The bank assures them that in case of any type of unauthorized utilization of the deposit account of the customer the bank remains liable to square off all the replaced amount from the account. Thus, the guarantee is 100%. But certain restrictions are also attached for availing this 100% guarantee option, such as
The customer has to report such snag within two days of occurrence of the problem.
The customer should close the system completely before leaving the computer, otherwise it becomes easier for the thief to do all the nuisance and consequently siphon off the money from the account holder's account.
The customer is required to take extra pre-caution in maintaining the secrecy of the identification number and password of the concerned account holder.
Online Banking for Small Business
Small Business > Banking > Online BankingOnline Banking for Small Business
Banking Has Never Been Easier
Manage your business with more confidence and convenience with Online Banking for Small Business. Get access to your deposit, credit, and investment accounts anytime, anywhere you have Internet access. You can check your balances, view transactions, transfer funds between accounts, pay and receive bills and more — and, it’s all FREE.
See for yourself how Chevy Chase Online Banking for Small Business can simplify your life and save you time:
Access all your accounts — With the Chevy Chase Business Check Card you get instant access and expanded transaction power over all your deposit, credit, and investment accounts. Link all your accounts to your Business Check Card and enjoy 24/7 access to them through Chevy Chase Online Banking.Set balance alerts — Set balance alerts on your accounts and receive alerts via email, when you log in to Online Banking, or both.Transfer funds quickly and easily — Make transfers between accounts linked to your Card. You even can transfer funds from your checking account to make payments to your Chevy Chase Bank loans, lines of credit, and credit card.Schedule future-dated and recurring transfers — Schedule future-dated and recurring transfers between your deposit accounts. Plus, you also can schedule future-dated and recurring payments to your Chevy Chase Bank Working Capital Line of Credit, Business Loan or Business Line of Credit. Download transactions — Manage expenses quickly by downloading transaction activity into popular financial management software such as Quicken®, Microsoft® Money or QuickBooks®. Pay your bills online — No more writing checks and running to the post office — save time by paying your bills online. With our extended remittance feature, you can add invoice and credit memo information on payments sent to your payees. And, for payments due on the same date and the same amount, let our recurring payments feature work for you by scheduling the payments for you.Receive and pay your bills online with e-Bills — No more trips to the mailbox. Receive your bills online and view, pay and save them.Get your statements online with e-Statements — Get your statements faster and reduce clutter with e-Statements. Receive and view your checking, savings and money market account statements — all neatly organized in Online Banking. When your e-Statement is ready, we'll notify you by email. Learn more about e-Statements.View the front and back of your processed checks with QuickCheckSM online — No more waiting for your monthly statement or shuffling through messy stacks to find a processed check when you need it.Choose your statement style with StatementSelect — Select from one of four statement styles to best match the way you reconcile your account.Set up account preferences — Set up your own online preferences, including creating Balance Alerts that notify you when an account balance goes above or below an amount you specify. Customize your Online Banking home page with either the Online Banking Main Menu or your Account Balance Summary. Take advantage of other services whenever you need them: request stop payment on a check, shop securely online to reorder checks or contact us securely by email.
Enroll Today!Frequently Asked Questions
See the Demo
LoginAlso of Interest:
Business Credit Cards
Business CDs
Employee Banking
Remote Deposit
Online Banking Key Features
The EON CyberAccount is UnionBank's internet-based deposit account. It allows you to do absolutely all your banking transactions in a click of a mouse. You can even make electronic fund transfers to any bank in the country -- anytime, anywhere!
Access your balances and transaction history
No more waiting for statements to arrive in the mail, Internet Banking lets you view your account balance and transactions at any time.
Transfer funds
No more waiting in queues to transfer funds or pay bills. Transfer funds between your own or to other UnionBank accounts. You can also enroll in the facility to transfer funds to other banks.
Pay Bills
On your own time and from you home, you can pay your credit card, insurance/pre-need/premiums, utility bills.
You can even schedule a bills payment for a later date!
The fastest, the most convenient way to bank!
No branches. No passbooks or checkbooks. No transaction slips. No time wasted. Do your banking transaction in 60 seconds! At home, or anywhere in the world where you have internet access.
No minimum balance to maintain!
Transfer funds from your EON account to another UnionBank account or any other bank account in the Philippines.
EON is the country's first electronic fund transfer facility among other banks. All you need to do is specify the Bank, the Beneficiary or Account Holder's Name and his /her Account Number and you're all set!
Pay Your Bills On-line!
Just enter your billing details - the corresponding reference number and the amount to be paid. You will receive a confirmation number as your receipt for every payment made.
Make balance inquiries, get account summaries
including transaction details. Monitoring your account has never been this easy
Customer Service
You can also send any requests for product information, or even report a stolen ATM or credit card via the mail facility.
ING offers interest on online checking
NEW YORK (CNNMoney.com) -- Online banking pioneer ING Direct helped transform the banking industry through its high-yield savings accounts, sparking a wave of copycats competing to attract tech-savvy consumers eager for a higher return.
Now the innovative virtual bank is looking to lure more customers from traditional brick-and-mortar banks through another offering: high-yield checking accounts. But will investors go ga-ga over the chance to earn more on money usually set aside to pay bills anyway?
Current Savings Rates
Type Overall avgs
MMA 1.20%
$10K MMA 1.23%
6 month CD 1.28%
1 yr CD 1.65%
5 yr CD 2.61%
Find personalized rates:
Industry experts are skeptical.
How fast will my savings grow?
"A savings account is a very important model for banks because it's a force for gathering deposits," said Madhavi Mantha, senior analyst at independent consulting and research firm Celent LLC. But checking accounts are less important - and less profitable - for banks, which usually use them to try to then sell other products to customers.
Consumers generally don't keep large amounts of cash in their checking accounts, making the lure of higher returns modest, analysts said.
"If you have a couple of thousand dollars sitting idle in a checking account, you may make $30 a year," said Asaf Buchner, analyst at research and consulting firm Jupiter Research. "That doesn't outweigh the fact that people still want branches for more complex activities."
But ING Direct CEO Arkadi Kuhlmann, who spearheaded the bank's high-yield savings accounts, said the widespread adoption of the Internet has pushed consumers who were once willing to settle for any return to demand more from their financial institutions.
When it comes to deposits, traditional banks are already tripping over themselves by offering perks like free checking and higher yields on savings accounts. Given the competitive pressures, Kuhlmann said online high-yield checking accounts are a natural next step in the banking industry's evolution.
"You've got pressure on bank margins, declining savings rates, low interest for all kinds of lending products and every bank is trying to grow organically," Kuhlmann said. "Checking accounts are going to be paying much more interest than in the past. It's a value proposition."
And if early consumer response is any indicator of success, then ING Direct - a unit of ING Groep NV (Charts) of the Netherlands - may be on to something.
Kuhlmann said ING Direct's new product - known as Electric Orange in keeping with the company's use of the color in its marketing - has attracted over 60,000 new checking accounts in just over two months, bringing in more than $2.2 billion in new deposits. ING Direct has some 4 million customers and $60 billion in assets.
Financial research and consulting firm Celent estimates that $120 billion in deposits were gathered online as of the end of 2005 and expects that figure to more than triple to $380 billion by 2010.
Why Sallie moved at Citi
Electric Orange allows checking customers the opportunity to pay bills online, access money through a MasterCard-branded debit card for free at 32,000 locations nationwide, send money through free electronic checks and provides free overdraft protection. And any money that sits in the account up to $50,000 earns a 3 percent yield. For checking balances beyond $50,000, consumers can earn up to 5.3 percent in interest.
He added that other banks are likely to go down the same route in order to remain competitive.
Some traditional banks are already jumping on the band wagon. HSBC Direct, the online arm of international bank HSBC (Charts) which recently raised its yield to 6 percent for new online savings accounts, is planning to launch a high-yield checking account in the first half of 2007.
HSBC spokesman Stephen Cohen said details are still being finalized and he declined to comment on what kind of yield would be offered. Currently, HSBC consumers earn 0.15 percent interest on their regular checking accounts.
E-Loan, which already provides online savings accounts, plans to branch out into checking later this year.
Citigroup's (Charts) Citibank Direct offers online checking, although it's not a high-yield account, said Citi spokesman Rob Julavits. Other banks with high-yield online savings include Capital One (Charts) and Emigrant Bank's EmigrantDirect. Neither offer high-yield online checking.
While online banking is becoming more popular, paving the way for innovations like high-yield checking, analysts aren't expecting consumers to abandon traditional banks any time soon.
According to a report by Jupiter Research, nearly half of U.S. households will use online banking by 2011, up from 36 percent in 2005. Jupiter Research's Buchner said while consumers may prefer to check statements and pay bills online - all standard options in ING Direct's checking account - they still prefer to open accounts and shop for complex products like mortgages in branches. Some consumers also prefer depositing checks at branches, he said.
ING Direct's checking account currently doesn't allow consumers to deposit checks at ATMs. Instead users can either choose to direct deposit checks electronically into their online accounts or mail it in to the company - a slower process.
Fortune 500: Biggest commercial banks
And if online checking accounts do catch on the way online savings accounts have, some analysts think traditional banks may have an advantage over ING Direct's virtual model.
"Cost of funds may actually be lower for some of the (traditional) banks because they have other lending products they can leverage," said George Tubin, research director at research advisory firm TowerGroup. "ING Direct started out as only a savings product and they've realized that's not a winning formula so they've expanded out to other product lines."
And if a price war for high-yield online checking begins, then ING Direct - once the market leader in offering high-yield products - may find itself outshone by competitors.
Still, ING Direct's Kuhlmann said the company isn't worried about being the provider with the highest yield in savings or checking accounts. The company will make money off card activity as well as any interest incurred on the account's credit line, he said.
And it's still coming up with innovations such as a high-yield online savings account for small businesses, due to launch in April. "We never said we'd have the best rate always," he said. "We tend to look at providing consumers with an ongoing steady proposition
Now the innovative virtual bank is looking to lure more customers from traditional brick-and-mortar banks through another offering: high-yield checking accounts. But will investors go ga-ga over the chance to earn more on money usually set aside to pay bills anyway?
Current Savings Rates
Type Overall avgs
MMA 1.20%
$10K MMA 1.23%
6 month CD 1.28%
1 yr CD 1.65%
5 yr CD 2.61%
Find personalized rates:
Industry experts are skeptical.
How fast will my savings grow?
"A savings account is a very important model for banks because it's a force for gathering deposits," said Madhavi Mantha, senior analyst at independent consulting and research firm Celent LLC. But checking accounts are less important - and less profitable - for banks, which usually use them to try to then sell other products to customers.
Consumers generally don't keep large amounts of cash in their checking accounts, making the lure of higher returns modest, analysts said.
"If you have a couple of thousand dollars sitting idle in a checking account, you may make $30 a year," said Asaf Buchner, analyst at research and consulting firm Jupiter Research. "That doesn't outweigh the fact that people still want branches for more complex activities."
But ING Direct CEO Arkadi Kuhlmann, who spearheaded the bank's high-yield savings accounts, said the widespread adoption of the Internet has pushed consumers who were once willing to settle for any return to demand more from their financial institutions.
When it comes to deposits, traditional banks are already tripping over themselves by offering perks like free checking and higher yields on savings accounts. Given the competitive pressures, Kuhlmann said online high-yield checking accounts are a natural next step in the banking industry's evolution.
"You've got pressure on bank margins, declining savings rates, low interest for all kinds of lending products and every bank is trying to grow organically," Kuhlmann said. "Checking accounts are going to be paying much more interest than in the past. It's a value proposition."
And if early consumer response is any indicator of success, then ING Direct - a unit of ING Groep NV (Charts) of the Netherlands - may be on to something.
Kuhlmann said ING Direct's new product - known as Electric Orange in keeping with the company's use of the color in its marketing - has attracted over 60,000 new checking accounts in just over two months, bringing in more than $2.2 billion in new deposits. ING Direct has some 4 million customers and $60 billion in assets.
Financial research and consulting firm Celent estimates that $120 billion in deposits were gathered online as of the end of 2005 and expects that figure to more than triple to $380 billion by 2010.
Why Sallie moved at Citi
Electric Orange allows checking customers the opportunity to pay bills online, access money through a MasterCard-branded debit card for free at 32,000 locations nationwide, send money through free electronic checks and provides free overdraft protection. And any money that sits in the account up to $50,000 earns a 3 percent yield. For checking balances beyond $50,000, consumers can earn up to 5.3 percent in interest.
He added that other banks are likely to go down the same route in order to remain competitive.
Some traditional banks are already jumping on the band wagon. HSBC Direct, the online arm of international bank HSBC (Charts) which recently raised its yield to 6 percent for new online savings accounts, is planning to launch a high-yield checking account in the first half of 2007.
HSBC spokesman Stephen Cohen said details are still being finalized and he declined to comment on what kind of yield would be offered. Currently, HSBC consumers earn 0.15 percent interest on their regular checking accounts.
E-Loan, which already provides online savings accounts, plans to branch out into checking later this year.
Citigroup's (Charts) Citibank Direct offers online checking, although it's not a high-yield account, said Citi spokesman Rob Julavits. Other banks with high-yield online savings include Capital One (Charts) and Emigrant Bank's EmigrantDirect. Neither offer high-yield online checking.
While online banking is becoming more popular, paving the way for innovations like high-yield checking, analysts aren't expecting consumers to abandon traditional banks any time soon.
According to a report by Jupiter Research, nearly half of U.S. households will use online banking by 2011, up from 36 percent in 2005. Jupiter Research's Buchner said while consumers may prefer to check statements and pay bills online - all standard options in ING Direct's checking account - they still prefer to open accounts and shop for complex products like mortgages in branches. Some consumers also prefer depositing checks at branches, he said.
ING Direct's checking account currently doesn't allow consumers to deposit checks at ATMs. Instead users can either choose to direct deposit checks electronically into their online accounts or mail it in to the company - a slower process.
Fortune 500: Biggest commercial banks
And if online checking accounts do catch on the way online savings accounts have, some analysts think traditional banks may have an advantage over ING Direct's virtual model.
"Cost of funds may actually be lower for some of the (traditional) banks because they have other lending products they can leverage," said George Tubin, research director at research advisory firm TowerGroup. "ING Direct started out as only a savings product and they've realized that's not a winning formula so they've expanded out to other product lines."
And if a price war for high-yield online checking begins, then ING Direct - once the market leader in offering high-yield products - may find itself outshone by competitors.
Still, ING Direct's Kuhlmann said the company isn't worried about being the provider with the highest yield in savings or checking accounts. The company will make money off card activity as well as any interest incurred on the account's credit line, he said.
And it's still coming up with innovations such as a high-yield online savings account for small businesses, due to launch in April. "We never said we'd have the best rate always," he said. "We tend to look at providing consumers with an ongoing steady proposition
Online Banking Review: ING Direct's Orange Savings Account
The Orange savings account from ING Direct is a great financial product that can help you save money by earning a high interest rate. This online bank account is easy to open, convenient to use, and safe and secure. ING Direct is a member of the
FDIC, so your deposits are insured by the federal government up to $100,000. The Orange savings account has no minimum balance requirement, no maintenance fees, no service charges, and can be linked to your existing checking account with another bank. The account is currently paying 4.35% APY interest and interest is credited to your account monthly. Interest rates do change and lately they have been going up, so you can check their website for their current rate. Their website is www.ingdirect.com. Why continue to accept a low interest rate from your local bank when you can earn more with ING Direct? And since you can link the savings account to your existing checking account, you don’t even have to change banks or order new checks. The reason that they can pay you a higher interest rate is because all of their transactions are done electronically, so their expenses are much lower than traditional brick and mortar banks. Without physical bank branches spread throughout the country, they have less operational costs, fewer employees to pay, and can pass this savings on to you in the form of higher interest rates.
There are a few different ways that you can apply for an account. You can go to their website and apply for an account directly online. Or, you can download an account application from their website, complete it, and mail it in. A third option is to call 1-800-ING-DIRECT to request an account application be mailed to you. Once the account is open, you can bank online 24 hours per day. Or, if you prefer, you can bank by phone through their automated touch tone system or by speaking to an ING associate from 7am to 9pm EST seven days a week.
FDIC, so your deposits are insured by the federal government up to $100,000. The Orange savings account has no minimum balance requirement, no maintenance fees, no service charges, and can be linked to your existing checking account with another bank. The account is currently paying 4.35% APY interest and interest is credited to your account monthly. Interest rates do change and lately they have been going up, so you can check their website for their current rate. Their website is www.ingdirect.com. Why continue to accept a low interest rate from your local bank when you can earn more with ING Direct? And since you can link the savings account to your existing checking account, you don’t even have to change banks or order new checks. The reason that they can pay you a higher interest rate is because all of their transactions are done electronically, so their expenses are much lower than traditional brick and mortar banks. Without physical bank branches spread throughout the country, they have less operational costs, fewer employees to pay, and can pass this savings on to you in the form of higher interest rates.
There are a few different ways that you can apply for an account. You can go to their website and apply for an account directly online. Or, you can download an account application from their website, complete it, and mail it in. A third option is to call 1-800-ING-DIRECT to request an account application be mailed to you. Once the account is open, you can bank online 24 hours per day. Or, if you prefer, you can bank by phone through their automated touch tone system or by speaking to an ING associate from 7am to 9pm EST seven days a week.
Netlink online banking blog
At Police & Nurses, we believe in the value of keeping our members informed of changes to our products and services. We also welcome your opinions and feedback.
We are therefore pleased to introduce you to our online blog, which provides you the opportunity to learn about issues that affect your banking and provides a forum for you to share your opinions and ideas.
The terms and conditions of the blog can be accessed at the bottom right of this page.
We look forward to hearing from you.
Our first topic of discussion is the upgrade to our Netlink online banking, which will be occurring on Monday 22nd June 2009. The upgrade will provide our Netlink online banking site with a fresh new look, which incorporates changes to the layout of the Account Summary screen and some new security features, to assist us to protect your funds.
The additional security features are a necessity to remain one step ahead of criminals and whilst we acknowledge it introduces an additional step when creating new external transfers and BPays, the impact to you should be minimal.
We welcome any comments and opinions about these changes
We are therefore pleased to introduce you to our online blog, which provides you the opportunity to learn about issues that affect your banking and provides a forum for you to share your opinions and ideas.
The terms and conditions of the blog can be accessed at the bottom right of this page.
We look forward to hearing from you.
Our first topic of discussion is the upgrade to our Netlink online banking, which will be occurring on Monday 22nd June 2009. The upgrade will provide our Netlink online banking site with a fresh new look, which incorporates changes to the layout of the Account Summary screen and some new security features, to assist us to protect your funds.
The additional security features are a necessity to remain one step ahead of criminals and whilst we acknowledge it introduces an additional step when creating new external transfers and BPays, the impact to you should be minimal.
We welcome any comments and opinions about these changes
Online Banking Fraud on the Up
The device is called keylogging, and enables fraudsters to gather passwords and credit card numbers.
Last year alone, online banking fraud reached a massive £52.5 million, compared to £22.6 million in 2007, and again, just £12.2 million in 2004, according to UK payment association – Apacs.
Losses due to fraud related to UK credit and debit cards also rose by 14%, reaching £609 million. However, most victims of card fraud aren’t liable and therefore get their money refunded.
Recent years has seen an increase in the number of people choosing to bank online, from the comfort of their own homes, as opposed to having to queue.
One Step Ahead
The problem of this is that fraudsters are usually one step ahead of consumers, and therefore, quickly adapt new technology. This has been seen clearly by the steady increase of internet banking fraud in the last few years.
The programmes that are used to target us by tracking our details usually find their way onto our computers via unsolicited emails.
A spokeswoman for Apac said: “The industry continues to remind customers to ensure that they have their computer’s firewall switched on and anti-virus software up to date.”
The introduction of card chip-and-pin numbers seemed to be doing the trick when it came to reducing card fraud, however, 2007 and 2008 has seen the number begin to rise once more.
Goods that are bought on the internet, over the phone, or via mail order are currently the number one target when it comes to card fraud. In these areas, pin numbers are not required, so it is hardly surprising that fraud in this area has risen by 13% to £328 million.
PIN Numbers Work
However, the most significant rise was 39%, which correlates to the number of people who take over other people’s accounts – ID theft.
Apac have admitted that, overall, card fraud losses have increased, but it says that if these losses are taken as a percentage of card turnover, these were actually falling.
It also pointed out that in the last 5 years, the most rapid acceleration in fraud was actually by fraudsters using cards overseas, especially in places where chip-and-pin is not in place. Apacs is therefore pressuring on many countries, including the US, to introduce chip-and-pin.
Anyone in the UK caught out by card/internet fraud is not liable according to the terms of the Banking Code as long as they have acted with ‘reasonable care’, and will subsequently be reimbursed.
However, the code also says that if the card is used before it is reported missing, or is someone knows a PIN, the victim has to pay the first £50 they lose.
Last year alone, online banking fraud reached a massive £52.5 million, compared to £22.6 million in 2007, and again, just £12.2 million in 2004, according to UK payment association – Apacs.
Losses due to fraud related to UK credit and debit cards also rose by 14%, reaching £609 million. However, most victims of card fraud aren’t liable and therefore get their money refunded.
Recent years has seen an increase in the number of people choosing to bank online, from the comfort of their own homes, as opposed to having to queue.
One Step Ahead
The problem of this is that fraudsters are usually one step ahead of consumers, and therefore, quickly adapt new technology. This has been seen clearly by the steady increase of internet banking fraud in the last few years.
The programmes that are used to target us by tracking our details usually find their way onto our computers via unsolicited emails.
A spokeswoman for Apac said: “The industry continues to remind customers to ensure that they have their computer’s firewall switched on and anti-virus software up to date.”
The introduction of card chip-and-pin numbers seemed to be doing the trick when it came to reducing card fraud, however, 2007 and 2008 has seen the number begin to rise once more.
Goods that are bought on the internet, over the phone, or via mail order are currently the number one target when it comes to card fraud. In these areas, pin numbers are not required, so it is hardly surprising that fraud in this area has risen by 13% to £328 million.
PIN Numbers Work
However, the most significant rise was 39%, which correlates to the number of people who take over other people’s accounts – ID theft.
Apac have admitted that, overall, card fraud losses have increased, but it says that if these losses are taken as a percentage of card turnover, these were actually falling.
It also pointed out that in the last 5 years, the most rapid acceleration in fraud was actually by fraudsters using cards overseas, especially in places where chip-and-pin is not in place. Apacs is therefore pressuring on many countries, including the US, to introduce chip-and-pin.
Anyone in the UK caught out by card/internet fraud is not liable according to the terms of the Banking Code as long as they have acted with ‘reasonable care’, and will subsequently be reimbursed.
However, the code also says that if the card is used before it is reported missing, or is someone knows a PIN, the victim has to pay the first £50 they lose.
Online bank fraud concerns consumers
It's the most unnerving story imaginable for a bank customer -- money disappearing from their account. A mysterious transaction, and no recourse. All the money, simply gone.
The case of Joe Lopez, detailed Tuesday by "NBC Nightly News with Brian Williams," is just one example. Lopez lost $90,000 when an unauthorized wire transfer moved the funds from his small business account to a bank account in Latvia. As a small business account holder, Lopez has fewer rights than consumers would if facing the same situation. But the story highlights increasing concern over the way financial institutions verify just who is moving money around their systems.
Online banking is increasingly popular in the United States. This year, about 55 million people will bank online, according to analyst firm Gartner. But the system is fraught with perils.
Chief among them are phishing e-mails that trick consumers into giving away their bank login information or other personal data. Nearly 2 million consumers said they'd fallen for the trick during one 12-month period, Gartner analyst Avivah Litan said earlier this year. It's not clear how many of them suffered an eventual attack on their online bank accounts, Litan said, but the stolen information is clearly valuable to would-be criminals.
While consumers who do suffer account losses are often refunded the money, there's still paperwork headaches to deal with, and not everyone does recover everything they've lost.
"In most cases, especially those involving credit card fraud, consumers get their money back pretty easily," she said. "But in other cases, like new account fraud or illegal transfers, it's not so simple and consumers often can lose out. They need to be aware of the holes in the system that are more apparent than ever with all the electronic doors into and out of their bank accounts."
The case of Joe Lopez, detailed Tuesday by "NBC Nightly News with Brian Williams," is just one example. Lopez lost $90,000 when an unauthorized wire transfer moved the funds from his small business account to a bank account in Latvia. As a small business account holder, Lopez has fewer rights than consumers would if facing the same situation. But the story highlights increasing concern over the way financial institutions verify just who is moving money around their systems.
Online banking is increasingly popular in the United States. This year, about 55 million people will bank online, according to analyst firm Gartner. But the system is fraught with perils.
Chief among them are phishing e-mails that trick consumers into giving away their bank login information or other personal data. Nearly 2 million consumers said they'd fallen for the trick during one 12-month period, Gartner analyst Avivah Litan said earlier this year. It's not clear how many of them suffered an eventual attack on their online bank accounts, Litan said, but the stolen information is clearly valuable to would-be criminals.
While consumers who do suffer account losses are often refunded the money, there's still paperwork headaches to deal with, and not everyone does recover everything they've lost.
"In most cases, especially those involving credit card fraud, consumers get their money back pretty easily," she said. "But in other cases, like new account fraud or illegal transfers, it's not so simple and consumers often can lose out. They need to be aware of the holes in the system that are more apparent than ever with all the electronic doors into and out of their bank accounts."
Next Generation Online Banking Solutions
I have been receiving many inquiries from banks about what to do with their aging online banking platforms. They recognize the need to upgrade but question what their provider is suggesting or simply would like to know more about where the market is headed. I have spent a lot of time researching the market and I have a pretty strong opinion regarding the types of features/functions that banks need to offer. Usability and customer experience are paramount. Some of the key areas of discussion lately have been:
•Vendor solutions. Should I stick with my current vendor or switch to a new provider? Who has the best solution out there? This is not a simple question to answer, and one that requires plenty of investigation. Celent has recently evaluated the vendors of retail online banking solutions (see the following report). Banks have been approaching us for custom evaluations where we plug in their specific requirements. I enjoy these projects as they always produce different results and I get to meet a lot of interesting and knowledgeable people.
•Web 2.0 Rich Internet Applications. Banks are trying to sift through the hype. They want to build Rich Internet Applications (RIA) but are having a hard time defining the business case. It’s a slow-moving process, but banks are recognizing the shift and the need to remain competitive. Non-banks are leading the Web 2.0 charge and banks are realizing that they are playing catch-up when it comes to customer experience.
•PFM. I have blogged about this extensively. Banks know they need to jump on the PFM bandwagon. Should they build a solution, buy pieces, outsource the entire thing? They also want to know how to integrate PFM properly into online banking. Lots of questions here.
•Social Media. Twitter is the talk of the town. I am receiving a ton of inquiries about how banks can leverage Twitter and other forms of social media. Banks also want to know how to integrate this into online banking and customer support.
While retail online banking has been the subject of most inquiries, small business online banking has proven to be a popular topic as well. Most banks tend to lump their small business customers onto retail solutions and ignore their unique requirements. The last thing a bank wants to do is let a small business customer fall through the cracks. They require customized features, some of which will need to be scaled down from cash management solutions (e.g. ACH, wire transfers, entitlements). The same can be said for high net worth customers who may require sophisticated capabilities.
In any case, I have been conducting a lot of online banking research lately and I am enjoying the fresh perspective that certain banks are thinking about or even starting to take. If you would like to discuss any of these please comment or feel free to send me a note
•Vendor solutions. Should I stick with my current vendor or switch to a new provider? Who has the best solution out there? This is not a simple question to answer, and one that requires plenty of investigation. Celent has recently evaluated the vendors of retail online banking solutions (see the following report). Banks have been approaching us for custom evaluations where we plug in their specific requirements. I enjoy these projects as they always produce different results and I get to meet a lot of interesting and knowledgeable people.
•Web 2.0 Rich Internet Applications. Banks are trying to sift through the hype. They want to build Rich Internet Applications (RIA) but are having a hard time defining the business case. It’s a slow-moving process, but banks are recognizing the shift and the need to remain competitive. Non-banks are leading the Web 2.0 charge and banks are realizing that they are playing catch-up when it comes to customer experience.
•PFM. I have blogged about this extensively. Banks know they need to jump on the PFM bandwagon. Should they build a solution, buy pieces, outsource the entire thing? They also want to know how to integrate PFM properly into online banking. Lots of questions here.
•Social Media. Twitter is the talk of the town. I am receiving a ton of inquiries about how banks can leverage Twitter and other forms of social media. Banks also want to know how to integrate this into online banking and customer support.
While retail online banking has been the subject of most inquiries, small business online banking has proven to be a popular topic as well. Most banks tend to lump their small business customers onto retail solutions and ignore their unique requirements. The last thing a bank wants to do is let a small business customer fall through the cracks. They require customized features, some of which will need to be scaled down from cash management solutions (e.g. ACH, wire transfers, entitlements). The same can be said for high net worth customers who may require sophisticated capabilities.
In any case, I have been conducting a lot of online banking research lately and I am enjoying the fresh perspective that certain banks are thinking about or even starting to take. If you would like to discuss any of these please comment or feel free to send me a note
