4 ways to protect your money with online banking

Financial technology continues to evolve. You no longer need to visit a bank in person to transfer money. You can access cash from your smartphone and even deposit checks by taking a photo (I was surprised the first time I saw someone do that).

If you want to future-proof your banking, you may be considering (or already have) joined an online-only bank. Because online banks have lower overhead costs than traditional banks, you’re more likely to pay a higher APY on your savings account, and you can maintain a high-quality checking account without onerous maintenance fees.

Read on for some great tips to keep your money safe in cyberspace.

1. Check FDIC insurance

This is very important because without FDIC insurance, your money is not protected from bank failure. This is a rare occurrence, but it can definitely happen. In the spring of 2023, three major U.S. banks failed within days. You can check your bank’s website to see if it is a member of the FDIC, or you can use that institution’s website. BankFind Suite Tools.

Recommendations for the Best High Yield Savings Accounts of 2024

Capital One 360 ​​performance savings AP 4.00% Price information A circle with the letter I inside it. Please visit the Capital One website for the latest pricing. Published Annual Percentage Yield (APY) is variable and accurate as of October 23, 2024. Rates may change at any time before or after account opening. Member of the FDIC.	AP 4.00% Price information A circle with the letter I inside it. Please visit the Capital One website for the latest pricing. Published Annual Percentage Yield (APY) is variable and accurate as of October 23, 2024. Rates may change at any time before or after account opening.	Minutes. earn $0
CIT Platinum Savings AP 4.70% APY for balances over $5,000 Price information A circle with the letter I inside it. 4.70% APY on balances over $5,000. Otherwise, 0.25% APY Minutes. earn $100 to open account, up to $5,000 APY Member of the FDIC.	AP 4.70% APY for balances over $5,000 Price information A circle with the letter I inside it. 4.70% APY on balances over $5,000. Otherwise, 0.25% APY	Minutes. earn $100 to open account, up to $5,000 APY
Western Alliance Bank High Yield Savings Premier AP 4.81% Price information A circle with the letter I inside it. Annual Percentage Yield (APY) is accurate as of October 21, 2024 and is subject to change at the Bank’s discretion. Please refer to the product website for the latest APY rate. The minimum deposit required to open an account is $500, and a minimum balance of $0.01 is required to earn the advertised APY. Minutes. earn $500 to open, $0.01 up to APY Member of the FDIC.	AP 4.81% Price information A circle with the letter I inside it. Annual Percentage Yield (APY) is accurate as of October 21, 2024 and is subject to change at the Bank’s discretion. Please refer to the product website for the latest APY rate. The minimum deposit required to open an account is $500, and a minimum balance of $0.01 is required to earn the advertised APY.	Minutes. earn $500 to open, $0.01 up to APY

Thankfully, well-known online banks are covered by the same FDIC insurance as your neighborhood bank or the big banks with branches in your city. The Federal Deposit Insurance Corporation provides coverage of $250,000 per depositor, insured bank, and ownership category. If for some reason you have more funds than this in a particular bank, consider splitting your funds across multiple banks to protect all your funds.

2. Log in regularly

We recommend checking your online bank account frequently. Aim to log in a few times a week to make sure all the bills you paid have been debited from your account and that you received the direct deposit you were expecting.

Check for suspicious transactions you didn’t make and alert your bank to possible fraud. Make sure your balance is where it needs to be based on the amount you have left in your account.

Speaking of balances, if you have checking and savings accounts linked to an online bank, be careful not to leave your checks overfunded. Even if you earn interest, the APY may pale in comparison to the APY of an online savings account. Why miss out on the passive income that comes from a savings account?

I received over $2,000 in interest on my savings account this year. what about you? Check out our list of the best high-yield savings accounts. And watch the money grow.

I like to earn as much interest on my money as possible, so I choose to keep a fairly low amount of funds, just $500, in my main checking account at any given time. This may check with less money than you’re happy with, but it’s a good idea to set goals and make sure your money is working for you as much as possible. . After all, money is a tool.

3. Enable multi-factor authentication

You may be able to enable multi-factor authentication when logging into your online bank, and we recommend that you do so. Multi-factor authentication requires you to enter your online account name and password, as well as a numeric code sent to you via text message or email.

This helps keep your money and data safe. This is an additional layer of protection to ensure that your information is accessed by you and not by shady scammers.

4. Opt-in to all types of alerts

Online banks are actively leveraging technology to set up alerts for a variety of issues, including low balances, receiving direct deposits, and suspicious transactions (such as transactions made outside of your normal geographic area). Options may be provided.

Be sure to opt in to these (you may find them on your bank’s website or mobile app). If something goes wrong with your money or your paycheck comes early that week (hooray!), wouldn’t you want to know about it when it happens?

Online banks are very good. My online high-yield savings account is by far the best bank account I’ve ever used. If you haven’t jumped on the online banking train yet, now is the perfect time. Follow these tips to keep your cash safe.