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Online banking links
Links to online banking information
BankRate.com, a good source for current information on online banking, publishes a nice getting-started guide.
BankRate.com publishes a glossary of financial terms that's very useful for understanding interest rates and terms offered by various online banks.
BankRate.com also provides a free service called Safe & Sound that rates the strength and security of both online and traditional banks, using 22 tests to measure asset quality, liquidity and more, and reporting on how they stack up compared to their peers.
An article at The Wall Street Journal by Jane Kim called "New Checking Has High Yields -- And Strings" discusses reward checking accounts.
HowStuffWorks.com provides an excellent basic explanation of how banks work -- useful for understanding how some banks can offer high interest rates.
The New York Times has a March 31, 2009, article about using special security software on an iPhone or other cell phone. The software adds extra security to logging on to your online banking site.
Javelin Research publishes annual reports on identity theft and bank fraud, checking trends and analyzing causes. The February 2010 report is available for a hefty fee, though you can download a sample.
Not surprisingly, the best source of information on the Federal Deposit Insurance Corporation comes from the FDIC itself. The winter 2008/2009 issue of its Consumer News publication includes an article called "Make the Most of Your FDIC Guarantee: How to be Sure Your Deposits are Fully Insured."
You can also read about the FDIC's recent coverage increase from $100,000 to $250,000 per account. l
An article at Examiner.com by A.W. Berry entitled "How to Evaluate Your Bank's Performance" includes links to ratings sites and the FDIC database.
Some banks that have failed in recent months did receive low ratings at BankRate.com. However, an article at FiveCentNickel.com notes that the BankRate.com service failed to predict the July 2008 failure of First Heritage Bank, N.A. of Newport Beach, Calif. The article warns that BankRate.com updates its ratings only quarterly, and a lot can change in three months. Therefore, it's more important to choose a bank with FDIC insurance than to scrutinize the ratings.
Bauer Financial also makes its bank ratings available to the public. More detailed reports on a bank (*Est. $10) are also available.
Veribanc, the company that screens banks for MoneyAisle.com auctions, also sells detailed ratings reports (*Est. $10) on any bank you're wondering about.
The Federal Reserve now requires that financial institutions allow customers to opt out of overdraft coverage; in fact, customers must now opt-in to get that coverage at all. Bank of America has issued a new policy that denies ATM withdrawals and debit card purchases when your account does not have enough funds so you can avoid hefty overdraft fees; Citigroup also does not allow customers to overdraw their accounts. Experts recommend opting out of such coverage as it can be costly, typically a $35 charge per overdraft incident. A report at USA Today has a good overview of the changes.
ConsumerSearch has related reports on personal finance sites and online bill paying.
Online banking security
A Feb. 25, 2009, article at the FineExtra.com blog provides an overview of online bank and identify theft and how to prevent it.
Symantec, the company that makes Norton security products, provides a useful article, "Online Banking: Best Practices for ID Security."
In July 2008, the University of Michigan made public a 2006 study that found serious security flaws in 75 percent of the 214 banking websites evaluated. While it's possible that banks have redesigned their sites since this report was publicized, the article points out what to look for in evaluating banking websites for security issues.
MSN columnist Liz Pulliam Weston's article, "Go Paperless for Safer Banking," asserts that you're safer when you go 100 percent electronic than if you get paper statements. The article includes tips on making this safe.
The Federal Deposit Insurance Corporation has information on failed banks.
Interest rates for checking and savings accounts and CDs
The following sites provide current information on rates, making it easier to find the best deals. Be sure to check the websites of the actual banks, though, before opening an account. Interest rates and account terms keep changing so it's hard for even the best sites to keep current.
BankRate (rate-finding site)
CheckingFinder (rate-finding site)
Money Aisle (auction site)
Bank websites
The following banks are recommended in at least one of the reviews we found. Experts recommend reading all the fees and terms carefully before opening an account. If you have questions, call for technical support before making a commitment.
First Arkansas Bank & Trust FirstNet Checking
Wachovia (Wachovia is owned by Wells Fargo, but continues to operate separately.)