It seems like new online banks and new online savings accounts are popping up every day, and it can be difficult to know who to take your money to. Dollar Savings Direct is an online bank that is a subsidiary of Emigrant Direct.

As many online banking consumers know, Emigrant Direct has other online savings accounts that they have been offering for several year. Now they have their subsidiary bank Dollar Savings Direct that is dedicated to offered interest rates that are closer to the rate for a CD or money market account and transfer those returns to an online savings account.

When the account was first offered the Dollar Savings Direct online savings account rates paid a nominal annual percentage yield. Since then they have increased their interest rate to an even 1.30%, making is much more like a CD or money market rate than for a normal online savings account. It is important to note that you have to deposit a minimum of $1,000 in order to get this top rate. If your balance ever falls below this minimum amount then your interest rate will drop to 1% until you bring the balance back up.

As with any bank account, online or otherwise, it is always important that you read all the terms and conditions. While Dollar Savings Direct is a reputable financial institution that provides many consumers with excellent rates and no hassle, a small handful of customers have had trouble later because they neglected to understand the terms of the account when they opened it.

The company is FDIC insured, so you can be certain that your money is safe and protected. But in their policy they state that if you close the account or withdraw all the funds before the last day of the month then you will not accrue any interest for that month. Many consumers become unhappy because they failed to read this policy and closed the account mid-month and forfeited their interest. Always be aware of what the terms and conditions for all of your accounts are.

Online Savings Account Australia
ING Direct Australia is an interesting online bank – and not just for Australians, see the interest rates they offer over there!

Because internet banking has evolved from its roots and become such a popular option over conventional banking, most people only hear about all the positive things.  It is true that online banking is an excellent solution for millions of people, making management of finances easier, faster, more affordable, and more convenient.  Without doubt, using internet banking is usually an excellent decision but as with any type of service, it would be important to understand any potential risks associated with internet banking to determine if this particular solution is right for you. Breeze by Standard  Chartered alleviates these fears with the very latest in technology

The most important thing to remember is that you are entrusting your money, often to an unknown financial institution.  In other words, if you choose to use internet banking connected with the brick and mortar bank where you have been banking for years, then obviously level of concern would be low.  On the other hand, if you were interested in an online bank that operates solely on the internet and one that you know little about, then you should be a little more wary.  That certainly does not mean the financial institution is dishonest or even fraudulent but it is always better to know.

The greatest potential when banking online has to do with identity theft.  In a perfect world, everyone would be safe when dealing online but in reality, identity theft is not just a real risk but also one that is growing.  For your identity to be stolen, hackers use a variety of different ploys such as pharming, phishing, hacking, viruses, fraudulent transactions, and unauthorized access.  What happens is that once you have been targeted, your personal information would be stolen but also your financial information.  From there, these thieves can do serious damage by emptying your bank accounts, making purchases on credit under your name, etc.  Unfortunately, trying to find the responsible parties is extremely difficult and once identity has been stolen, it takes many years to recover.

Therefore, when choosing internet banking, the greatest risk is theft and most important decision has to do with online security.  Although all ploys are used, phishing is the most common, especially when it comes to internet banking.  Typically, you would receive an email that looks like an official notice coming from your bank.  The bank’s letterhead might be used, actual names of bank executives, etc.  Within the email, you would be notified of some reason that you must immediately provide confidential details or connect to a provided link.  For instance, the message may state that someone was trying to access your account and to protect your assets, immediate action is required.

Unsuspecting people will gladly provide the information being requested or follow the link where they are required to complete a form that also gives the crooks sensitive information.  To protect yourself and your finances from situations such as this, you have two primary options.  First, it is essential that you educate yourself about the various ways in which information is captured.  Being aware and recognizing a ploy puts you in control.  Second, always choose a financial institution for internet banking that operates a safe website using the latest and best protective measures available.

One way of accomplishing the second option is by not access an internet banking service facility from a public computer.  At home, you have virus protection and a secured hosting service but when public computers are used, they go through open or public routers, which means anyone could gain access to that same connection and start capturing information, often through keystroke software.  In no time, these criminals would know where you bank, your account number, logon ID, PIN, etc.

Finally, pharming is also very dangerous when it comes to internet banking.  In this case, crooks will compromise a non-secure online financial institution so when a customer logs in to manage finances, they are quickly and without knowing redirected to a bogus site that looks identical to the real bank.  Of course, as information is entered and money transactions completed, all the information is collected.  Therefore, any bank you might be interested in for internet banking should use the highest level of security available, which can be identified easily in the following ways.

•    The website address should initially start with https:// or http:// that converts to https:// after logging in.  The “S” stands for security so without this, the site is dangerous.

•    Icons for security companies would be visible on the home page.  While there are many, the most popular and effective is VeriSign.  An icon, statement, or the actual company name would be clearly visible.

•    Finally, on the bottom of the screen when at the internet banking website, look for a padlock icon