Online banking has opened up new opportunities for consumers to earn higher interest rates on their money . Online banks do not have to support bricks and mortar and as a result offer higher interest rates to their clients.
As with any new way to do business, it has also attracted fraudulent operators who are attempting to defraud people of their money. Before putting your money in with an online bank or credit union check them out to be sure they are legitimate.
For banks the Federal Deposit Insurance Corp. (FDIC) can determine if you are dealing with a legitimate bank.
For credit unions the National Credit Union Administration (NCUA) can validate if the credit union you are dealing with is legitimate.
Before depositing your money - always check to ensure you are dealing with a legitimate online banking organization.
Greg Libbrecht - President, Platinum Books & Five Star Accounting