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Banking online

Choosing a bank should be a well-researched project. Which bank is the best for you depends on what features and amenities you most value, as well as the use and frequency of use you plan on making of your bank. Banks come in a variety of sizes. Some are small town banks with but a few local offices. Others can be found all over town, and even all over the state. Which you choose depends on what you're looking for from your bank.

Well, the first indication that you're money's in a safe place is the placard that greets you at the door - FDIC. This federal U.S. agency, the Federal Deposit Insurance Corporation, typically protects up to $100,000 of your deposited funds from loss. Established in the 1930's, the FDIC became a way to curtail the runs on banks that occurred directly after the Depression. By 1934, with the initiation and support of the FDIC legislation bank runs had been reduced by nearly 4000. In addition to FDIC protection, banks also pay for supplemental banking insurance from private carriers. This insurance is set up to protect investors' funds from vandalism and bank robberies.

Online banking is available now with almost any bank, but not all online services are the same. To assume that because a bank is online means you have 24/7 access and adequate convenience is a mistake. Where one bank may allow you to transfer funds from one account to another and offer instantaneous verification of this change in balance, others will delay the transaction, or at least your view of the transaction, by more than 24 hours. This makes using online access to keep track of your balances next to impossible and it can aggravate attempts to use the bill paying and other online features.

Besides, unlike searching for your home mortgage or your loan for your child's college tuition, you don't have to make a final choice. You can have as many bank accounts in as many banks as you wish. You can, for instance, stash the bulk of your cash - the funds you don't need to withdraw on a regular basis - in that higher-interest-rate virtual bank, and still join the friendly-face local brick and mortar bank for ease of check cashing and a friendly neighborhood face.

At this time there are fewer than 10 virtual banking firms. Two of these, NetBank and Security First Network Bank are Georgia-based. The newest as of this writing is WingspanBank.com, a Delaware institution. Telebanc Financial Corporation's TeleBank is from Arlington Virginia. Two others are CompuBank and Indiana-based First Internet Bank.

Prior to launching your banking comparison the way to start may well be by asking recommendations of friends and family. Ask each where they bank and why. Ask them if they tried any other banks. Then head for the nearest branch of their first recommendations. Once you've been to one start with the others by saying, "Bank ABC offered me this. What can you do for me?" It may be that without that additional probing you would not find out all the percs there are to know about the bank you are considering. Of course, if you don't want to risk a "shop til you drop" you can explore each bank online, and by email, and then make your final point of determination - their customer service - the decider with a stop by the nearest branch location. This approach can save both time and money. After all, isn't that what shopping for the best bank is all about?

Taina Mcghay is the owner and operator of Fulle Banking Ltd which is an excellent place to find banking links, resources and banking articles.

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