Savings Advice Corner


Tips for Safe Banking Over the Internet



More banks are using the Internet to market their products and services to customers, and to facilitate communications with consumers. The Internet offers the potential for safe, convenient new ways to shop for financial services and conduct banking business 24 hours a day. However, safe banking online involves making smart choices that will help you avoid scams. Here are some tips for safe Internet banking.
  • Confirm that an online bank is legitimate and that your deposits are insured.
  • 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.
  • Protect yourself from fraudulent Web sites. Be alert 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.
  • 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.
  • Protect Your Privacy. Banks are required to give you a copy of their privacy policy once you become their customer, regardless of whether you are conducting business online or offline. You may also see a copy of it posted at the bank’s Web site. Review this policy to learn what information the bank keeps about you, and what information it shares with other companies.
  • Help Keep Your Transaction Secure. It is important to learn how to safeguard your banking information, credit card numbers, Social Security Number and other personal data when transacting online. Take advantage of security features, such as encryption, passwords and PINs.

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FDIC Insurance

FDIC Insurance.

 The Federal Deposit Insurance Corporation (FDIC) insures deposits in most banks and savings associations located in the United States. The FDIC protects depositors against the loss of their deposits if an FDIC insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government.

For simplicity, the term "insured bank" is used to mean any bank or savings association that has FDIC insurance. To check whether a bank or savings association is insured by the FDIC, call toll-free at: 1-877-275-3342 or look for the official FDIC sign where deposits are received.

What does FDIC deposit insurance cover? FDIC insurance covers all types of deposits received at an FDIC insured bank, including deposits in checking, NOW, and savings accounts, money market deposit accounts, and time deposits such as certificates of deposit (CDs).

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FDIC deposit insurance covers the balance of each depositor's account, dollar-for-dollar, up to the insurance limit, including principal and any accrued interest through the date of the FDIC insured bank's closing.

The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities, even if these investments were bought from an FDIC insured bank.

The FDIC does not insure U.S. Treasury bills, bonds, or notes. These are backed by the full faith and credit of the United States government.

How much insurance coverage does the FDIC provide? 
The basic insurance amount is $100,000 per depositor (temporaily raised to $250,000 through December 31, 2009), per FDIC insured bank.

Note: Included in the Emergency Economic Stabilization Act of 2008, signed into law on October 3, 2008, is authorization to temporarily raise the FDIC and the National Credit Union deposit insurance limits from $100,000 per account to $250,000, effective October 3, 2008 through December 31, 2009.

The $100,000 which has been raised to $250,000 through December 31, 2009 applies to all depositors of an

FDIC insured bank

except for owners of certain retirement accounts, which are insured up to $250,000 per owner, per FDIC insured bank.

Deposits in separate branches of an FDIC insured bank are not separately insured. Deposits in one FDIC insured bank are insured separately from deposits in another FDIC insured bank.

Use the CD Ladder calculator to see how investing in a series of Certificates of Deposits with different maturities and at different banks can allow you to maintian deposits within FDIC limits and, at the same time, maintian liquidity and maximize your interests.

Deposits maintained in different categories of legal ownership at the same bank can be separately insured. Therefore, it is possible to have deposits of more than $100,000 (note, FDIC limit has been temporaily raised to $250,000 through December 31, 2009) at one FDIC insured bank and still be fully insured.

INCREASED FDIC Deposit Insurance Coverage



Included in the

Emergency Economic Stabilization Act of 2008

, signed into law on October 3, 2008, is authorization to temporarily raise the FDIC and the National Credit Union deposit insurance limits from $100,000 per account to $250,000. The legislation authorizing the increase in deposit insurance coverage limits makes the change effective October 3, 2008, through December 31, 2009.

The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects against the loss of insured deposits if an FDIC-insured bank or savings association fails. FDIC deposit insurance is backed by the full faith and credit of the United States government.



What does FDIC deposit insurance cover?


FDIC insurance covers all types of deposits received at an insured bank, including deposits in checking, NOW, and savings accounts, money market deposit accounts, and time deposits such as certificates of deposit (CDs) - CD calculator.

FDIC deposit insurance covers the balance of each depositor's account, dollar-for-dollar, up to the insurance limit, including principal and any accrued interest through the date of the insured bank's closing.

The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities, even if these investments were bought from an insured bank.

The FDIC does not insure U.S. Treasury bills, bonds, or notes. These are backed by the full faith and credit of the United States government.

How much insurance coverage does the FDIC provide?


The basic insurance amount is $250,000 per depositor, per insured bank.

The $250,000 amount applies to all depositors of an insured bank.

Deposits in separate branches of an insured bank are not separately insured. Deposits in one insured bank are insured separately from deposits in another insured bank.

Deposits maintained in different categories of legal ownership at the same bank can be separately insured. Therefore, it is possible to have deposits of more than $250,000 at one insured bank and still be fully insured.

CalculatorPlus.com offers free online savings calculator, mortgage payment calculator, futures calculator and credit card calculator that can help you make the right personal finance decisions. Additionally, CalculatorPlus.com provides a variety of business calculators including commercial loan and working capital calculator.


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