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Whether you are selecting a traditional bank or an online bank that
has no physical offices, it’s wise to make sure that it is legitimate and that
your deposits are federally insured. Here are tips specifically designed for
consumers considering banking over the Internet.
Read key information about the bank posted on its Web
site.
Most bank Web sites have an "About Us" section or something similar
that describes the institution. You may find a brief history of the bank, the
official name and address of the bank’s headquarters, and information about
its insurance coverage from the FDIC.
Protect yourself from fraudulent Web
sites. For example, watch out for copycat Web sites that deliberately use a
name or Web address very similar to, but not the same as, that of a real
financial institution. The intent is to lure you into clicking onto their Web
site and giving your personal information, such as your account number and
password. Always check to see that you have typed the correct Web site address
for your bank before conducting a transaction.
Verify the bank’s insurance
status.
To verify a bank’s insurance status, look for the familiar FDIC logo or the
words "Member FDIC" or "FDIC Insured" on the Web site.
Also, you should check the FDIC’s online database of FDIC-insured institutions.
You can search for an institution by going to
Bank Find (formerly “Is My Bank Insured?”). Search by name, city,
state or zip code of the bank, and click the "Find" button. A positive match will
display the official name of the bank, the date it became insured, its insurance
certificate number, the main office location for the bank (and branches), its
primary government regulator, and other links to detailed information about the
bank. If your bank does not appear on this list, contact the FDIC.
Some bank Web sites provide links directly to the FDIC’s Web site to assist you
in identifying or verifying the FDIC insurance protection of their deposits.
Also remember that not all banks operating on the Internet are insured by the
FDIC. Many banks that are not FDIC-insured are chartered overseas. If you choose to use a bank
chartered overseas, it is important for you to know that the FDIC may not insure
your deposits. Check with your bank or the FDIC if you are not certain.
For insurance purposes, be aware that a bank may use
different names for its online and traditional services; this does not mean you are
dealing with separate banks.
This means, for example, that to determine your maximum FDIC insurance coverage,
your deposits at the parent bank will be added together with those at the
separately named bank Web site and will be insured for up to the maximum amount
covered for one bank. Talk to your banker if you have questions.
Know where to get more information about FDIC insurance.
Don't worry about your deposit insurance coverage if you or your family have
less than $250,000 in all your accounts combined at the same FDIC-insured bank. But
if your accounts total $250,000 or more, find out if they're within the insurance
limit. Contact your bank for more information.
For additional assistance from the FDIC about the legitimacy of an institution
or the insurance of your deposits, call the FDIC's Division of Compliance and
Consumer Affairs toll-free at 1-877-275-3342 or send an e-mail via the FDIC’s
online
Customer Assistance page. The FDIC’s Web site also has an interactive
service called
EDIE (Electronic Deposit Insurance Estimator) that can help you determine the
amount of your insurance coverage. Or, you can read the online deposit insurance
brochure "
Your Insured Deposits."
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