General Question

bkburbo's avatar

Are online banks (relatively) safe right now?

Asked by bkburbo (251points) September 30th, 2008
Observing members: 0 Composing members: 0

10 Answers

laureth's avatar

The only thing that online banks have that other banks don’t, is a website. I do not believe this reduces the risk any.

Snoopy's avatar

As w/ any bank, make sure it is FDIC insured (or NCUSIF if it is a credit union).

EmpressPixie's avatar

FDIC insured banks are relatively safe right now.

Online banks are usually a better in some ways because they don’t have the same overhead—no brick and mortar location to drain money. Of course, they also plan on that and use higher interest rates to draw you in based on their lower costs. Still, if they are FDIC insured, you’re covered. Insurance is what you should really care about more than anything.

mea05key's avatar

I have natwest online banking and i think its relatively safe. I was pretty skeptical about the service but it seems alright until now.

Snoopy's avatar

ING is reliable, reputable and easy to use….

EmpressPixie's avatar

@Snoopy: You forgot the best part: their interest rate is great! (I went from a brick and mortar savings account with, like, no interest rate to ING. It was life changing.)

Snoopy's avatar

ooh me too EP. I hope my local banks are noticing w/ disdain how quickly I yank deposits out of their grasp and move it to ING. It is sooooo easy.

grayreason's avatar

Until next month…when everyone will freak out and withdraw their money causing the bank to declare bankruptcy and the federal government to buy it out. Personally id withdraw all but a few hundred dollars from my banking account and keep the rest in cash.

EmpressPixie's avatar

Yes. Because if we all do that, the incident of home burglary won’t go up at all.

Seriously—they’re safe, FDIC insures, we get to keep our money, and keeping your money under the mattress or whatever else that’s not in a bank and FDIC insured is silly. And dangerous. For you. Actually, for your money. You aren’t earning interest AND you run the risk of losing it all to theft.

jvgr's avatar

Any bank that meets the qualifications in the regulations that allow it to be insured by FDIC to safeguard it’s depositers is safe (your money is).
If your bank is simply a website that has arrangements with another institution that holds your money for them, you.ll need to sort that out.
Most banks have websites, and they all should have their FDIC insurance qualification noticeable somewhere. If you can’t find it. Call your bank, visit a branch.
If you are in a non-FDIC insured situation, you might want to get your money.

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