Seven Tips for Safe Online Banking

Online banking is quickly becoming one of the most popular ways for people to manage their money. For many consumers, online transactions are easier to manage and sometimes provide higher incentives. However, whether you're managing your traditional account through your bank's website or opening a new account from an online bank, it's important to keep your information protected. If you're unsure about the safety of entering your financial information online, remember that most online banks use multiple layers of protection to keep accounts secure. Use these seven tips to maximize the protection on your account.

1. Use a Strong Password
A strong password is the first step to protecting your financial information online. Create a password that combines capitalized letters, lowercase letters, numbers and symbols, as this will be harder for hackers or thieves to guess. You should also have a separate password that is only used for online banking. If the password for one of your other accounts is stolen, you won't have to worry about the security on your bank account.

2. Keep Your Password Protected
Once you have a secure password, keep it safe. If you need to write it down, be sure it is stored in a safe place where others won't find it. Don't share your password with anyone who isn't listed on the account. If the account asks you to create a security question that will verify your password, be sure to choose an answer that other people aren't likely to guess.

3. Log On Carefully
Hackers can create fake websites that look extremely similar to the originals, so be sure you're accessing a legitimate version of your bank's website before entering your password, account number or other personal information. Always type the exact website address into the URL box of your browser. Avoid clicking on links to access your bank's site, particularly if the link is in an advertisement or on a third-party website.

4. Make Sure the Website is Encrypted
Before you submit personal information, be sure you're using the Internet from a secure, encrypted connection. When the website is encrypted, any information you send will be scrambled on the way to its destination. This prevents hackers and thieves from intercepting the data along the way. Look for a small lock or key icon to make sure your transaction is secure.

5. Monitor Your Account Regularly
Even if you don't have a transaction to complete, check your online banking account regularly. Watch for suspicious or fraudulent activity such as purchases or transfers that you don't recognize. Additionally, check your email for notices about password changes or security information that you haven't requested. These are all signs that someone might be trying to access your account. If you see any suspicious activity, contact your bank immediately.

6. Research Your Bank in Advance
Always research your bank thoroughly before opening a new account. This is a good idea whether you're working with a traditional bank or an online bank, but it's especially important when you're opening an account with a new company or an unfamiliar name. Look to see if the bank is FDIC-insured and read about the company's history before entering any personal information online.

7. Understand Your Rights
In addition to reading the terms of your account agreement, you should also carefully read over your bank's privacy policy. You should know what type of personal information the bank records. Additionally, you need to know what measures the bank has in place to keep your information secure. When you take care to protect yourself, you can enjoy peace of mind and convenience through online banking.

Victoria Lee is an experienced author with a special interest in finance. Based in New York, she gives advice on investing your money and the benefits of online banking. Her favorite pastime is reading up on the latest finance news and she saves her best tips for her finance information pages: http://www.squidoo.com/lensmasters/FinancialTips4U at Squidoo.