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How to Start Using Internet Banking Services

Perhaps you have decided that internet banking is for you.  Now, you have to get set up so that you can start using online services.  Depending on which kind of Internet Company you are going to use, there are different ways to start using internet banking. 

If you want to register for internet banking with your bricks and mortar bank, or “clicks to bricks” as it is called, you will find the process very simple.  You can call the bank and ask to register for their online banking services. 

They will send you the information you need.  You will receive an instruction sheet in the mail.  It will explain how to log on to the internet banking website.  It will also give you a unique username.  Usually, this username will not change. 

The letter will also advise you on security issues with internet banking.  It will explain requirements, such as that you have 128-bit encryption on your computer.  It will tell you how to enter your username on the bank’s website.  It might counsel you to type in the bank’s URL carefully to avoid phony websites that are set up to get your information. 

The next letter you will get will be one with your temporary password.  You will be given instructions on how to change your password.  It will tell about the various security tokens you have to choose, such as images and captions.  Then it will tell you how to sign on to the bank’s site and begin your internet banking. 

If you are using a virtual bank, the process is a little different.  To begin, you must first open an account with the bank.  You can start by choosing the virtual bank you will use for your personal or company’s business. 

Many considerations are the same as with bricks and mortar banks.  You want to make sure they are FDIC insured.  You will be interested in their interest rates on savings accounts, loans, and certain checking accounts.  It might be necessary to know the bank’s overdraft fees. 

You will also be wise to read any information they have on their rules and procedures.  It may be dull reading, but it can be important to you.  You need to know what your rights are and what the bank expects of you.  You will be asked to agree to these terms.  If you are virtual banking, print off this information. 

Once you choose a virtual bank, you will set up your account.  You can do this by starting at the bank’s website.  Make sure it is the reputable virtual bank you have investigated before you give your personal information or send any money. 

The virtual bank will let you choose a username and password, within certain parameters.  Then, you can get down to the business of starting your internet banking account.  This will start with some input from you. 

You will give all the usual information that you would give to any bank where you set up an account.  Common questions are your name, your address, your phone number, your social security number, and your place of employment.  Then, you will send the virtual internet banking company some form of deposit to get the ball rolling. 

When you have yourself all set up to do internet banking, you can start making transactions with the click of your mouse.  It is fairly simple, whether you are doing internet banking by clicks to bricks or virtual banks. 


Internet Banking and Investing Searches

Internet banking investing is ideal for those who have a little more than is needed for a small savings account.  Although internet banking savings accounts do better than traditional accounts, investment accounts have much more potential. 

The first thing to remember, though, is that internet banking investment accounts are not FDIC insured.  You are taking a risk to put your money in such accounts.  Yet, the possibility for financial gain is so much greater that, for most people in a position to do it, it is well worth the gamble. 

In fact, knowing how much risk you can tolerate is crucial in knowing how to plan your internet banking investing theme.  You need to determine how much of your holdings you will put into high risk ventures like certain stocks.  You also need to figure out how much you want to balance that with lower risk vehicles like bonds. 

This balance is part of your internet banking investment process.  You cannot put all your money in one form of investment without making a very unwise decision, in almost every case. 

You need diversity in your internet banking investment portfolio.  This will allow you a chance to make some serious money, and at the same time, protect part of your assets in case of a drop in stock prices.  You also need to reevaluate the percentages of low risk-high risk investments in your internet banking portfolio. They will naturally change over time and need correcting. 

You can use an internet banking savings account or invest your money in higher yield products.  You will need to bear a few things in mind.  When money compounds, you are making money without effort.  This can come from savings or investment.  Furthermore, you must find a way to beat inflation in both cases.  Otherwise your money will be worth less when you take it out than when you put it in. 

International investments through internet banking are becoming more important as world communication increases.  The planet is becoming so connected that investing in another country is like investing in the US in many cases.  This makes internet banking all the more important. 

Many investment firms suggest that you cannot invest properly without sitting down face to face with an investment professional.  This may be a good option for many.  However, many profitable investments take place through internet banking. 

Furthermore, just because you are investing through internet banking, it does not mean that you will not have access to professionals.  You will be able to go to people who will assist you with advice on your financial decisions. 

You can generally read about the credentials of these people in the “About Us” section of the website.  It is important to know that brokers are people who deal with different companies to try to offer you the best investments, through internet banking in this case.  Financial advisors can help you with all aspects of your money matters. 

There are ways to use internet banking to do investing in a variety of stocks and bonds.  It makes the process easy and fairly quick.  It will be an important way for people to prepare for the future in coming years.


Learn How Account Balance Pays Off

If you keep a large balance in your internet banking account, it may be easy for you to keep it in good standing. However, if you are like many people, you might be running on a tight budget. If so, you will need to be careful about how you handle your account.

One of the most important things you can do is to confirm that any deposits that should go into your account are credited. They must, of course be in the internet banking account before you can draw them out. If you are paying bills with them, they need to be in place.

If you have direct deposit, you may become slack about checking to see if the money is in your account. This is a bad habit to get into for a couple of reasons. First, there could be a banking error on the part of your internet banking firm or on the part of the sending bank.

Second, the amount of the deposit could change for some unexpected reason. In either case, you will need to know immediately. Besides, with internet banking, it is simple to go to your computer and check your deposit as soon as you expect it.

If you make manual deposits, the wait time will be longer. It may take a week or longer for a check to get to your internet banking headquarters if you mail it in. You need to check for the deposit so that you will not spend money that is not there. What is more, you should know your company’s policy about holding checks, if it is a large one.

With internet banking accounts, you can set up bill paying online. You set up the payees in advance and type in how much to send them and when. Your bank will even send you emails when payments are made if you request it.

However, it is easy to let these automatic bill paying services get out of hand. If you set up all your bills and do not keep a watchful eye on your internet banking account, you could be in trouble. If you let your balance get too low before your bills become due, the bank will still pay them as scheduled, up to a point.

When they do, they will charge you an overdraft fee every time. Eventually they will close your internet banking account and present you with a bill. If your money is this tight, it might be best to set up each payment as close as possible to when it is due. That way you will not forget it.

If you do use automatic bill paying, you need to be certain to take these deductions into account. When you use your ATM card or debit card, you should keep in mind how much money you have in your internet banking account and how much money is scheduled to come out before more money comes in.

Perhaps the most important thing you can do to keep your internet banking account in order is to check it often. If you are one of the many people who do not have extra money to leave in an internet checking account, it pays to watch for mistakes and oversights.


Confirming Internet Bankings Legitimacy

When investigating the use of internet banking, make sure they are affiliated with the FDIC.

When you set up your first internet banking account, you may have reservations about it. After all, anyone could set up a website, claim to be a bank, and fraudulently take your money. There are some precautions you can take to be sure your online bank is a legitimate one.

Start by going to the bank’s website. There, you can get the information the bank gives you about their banking credentials. The bank’s official name should be listed. There may be articles describing the history of the bank, including their internet banking history.

There should be an address where the headquarters can be found. There will be a base of operations somewhere, even if it is a virtual bank internet banking operation. If they are on the up-and-up, they will not be hesitant to tell you about their FDIC coverage.

It is easy to check a bank’s FDIC insurance. If you see the words “FDIC Insured” or “Member FDIC” or the FDIC logo, you might be on the right track. However, it is wise to go a step further. Go to the source to find out if the internet banking company is really affiliated with the federal insurer.

The FDIC has its own data base that includes all of the banking institutions, including internet banking companies that are covered by FDIC insurance. Just go to their “Bank Find” site to find out if your bank is one of them. You can start your search with the name of the bank or its address.

If your internet banking company is on that list, the FDIC will provide you with a whole list of helpful information. You will learn when the bank became insured, and the number on its insurance certificate. You will find out the location(s) of your bank and its official name. You will find out what government entity regulates that bank.

If your internet banking company does not appear on the list, it is time to go directly to the FDIC. They will be concerned with the legitimacy and safety of that bank. It is probably not wise to put your money in an uninsured bank. At that point, it is better to look for another internet banking operation.

Once you do sign up with an online bank, be cautious about how you use their internet banking website. Some unscrupulous people will use the internet to get your banking information. They will do this when you log onto your bank’s website.

The trick these dishonest people use is to set up a website that looks like your bank’s website. They have a URL that is very similar to your bank’s URL. Then, they sit back and wait for you or others to make a mistake typing in your bank’s URL that will get you to them.

From there, the fraudster will track all the information you type into the opening page. They will be able to get your user name, your password, and any other information you type. The best way to make sure you are dealing with your legitimate bank is by being very careful when typing in their site address.

If you are to trust your internet banking company, you must take precautions to assure yourself that it is a respectable business. Once you do that, you can bank with ease.


How Internet Banking Institutions Are Set Up

Consider all the internet banking institutions available for business.  Some are set up by large corporations and some are small companies.  Although you may never want to set up an internet banking operation yourself, it is enlightening to take a look at the process. 

The first order of business is to gather a group of at least five people to organize the internet banking company.  These people will be on the board of directors, and one of them should be the CEO of the bank.  The five or more people will be intensely involved together to form working procedures of the bank. 

After the group is brought together, they must choose a name for their internet banking company.  They have to be very picky when it comes to their name.  They will want the name to be easy to remember.  It should be catchy and have a nice ring to it. 

Another consideration with the name is making it original.  Getting a name that can also be used as a domain name is preferable.  Also, the name must pass strict guidelines as to its similarity to other banks and internet banking institutions   if it is too similar, the bank founders will not be able to obtain a trademark for it. 

To get a name trademarked, they simply have to go to the US Patent and Trademark Office.  There is just one form to fill out.  They submit it with a fee and wait for approval.  Sometimes, they have to make a case for their trademarked name.  This is done through emails.  If all goes well, the internet banking name will soon be theirs. 

The group of investors can now go to web-hosting services and set up a website that can be accessed publicly.  To make the website, professionals are needed.  The website is, as far as the consumer is concerned, the heart of the internet banking business. 

The professional website designer should design an internet banking site with the highest level of security.  This includes such features as 128-bit encryption, secure socket layering, and adequate firewalls. 

For the consumer’s preference in use, there are other considerations in making an internet banking website as well.  It should be eye-catching to bring in the most customers.  It should also be easy to get around the website.  Another consideration is copyright infringement.  It must be ascertained that nothing is directly copied onto the website. 

The group now forms its charter.  It must apply for an internet banking charter through the Office of the Comptroller of Currency (OCC).  This is a lengthy process and involves a huge amount of paperwork and information. 

Another way is to take over stock in an existing bank and put in a change of charter with the OCC.  In any case, the OCC will give the board of directors advice on how to best submit their application for the charter of their internet banking operation. 

The OCC evaluates all the information the internet banking partners have put together about their financial situation and their proposed banking policies.  Then, if the OCC grants a charter, the bank is ready to open its virtual doors.