Online Banking Basics: A Guide (page 3 of 4)

• Smart Banking
• Get Organized
• Budgeting
• Online Savvy
• Money
• Get Out of Debt
• Ways to Save
• Frugal Shopping

How Safe Is It?

Very. It may seem counterintuitive, but banking online is safer than using your mailbox, a major source of identity theft. Most important: Make sure your bank has "zero liability" protection. It means the bank will cover you for any Internet fraud on your account, provided you've taken basic security steps like enabling the firewall on your computer. (On Windows XP, it's under the Windows Security Center in the Control Panel. On Vista, click on Security under the Control Panel. On a Mac, it's in the Sharing tab under System Preferences.)

Tips for Banking Safely

• Use a current browser: Firefox 2, Safari 3 or Internet Explorer 6 or 7.

• Enable the function that automatically looks for security updates. On Windows XP and Vista, the Automatic Update tab is under System in the Control Panel. On the Mac, it's under Software Update in System Preferences.

• Don't use the same password for all accounts and sites. A combo of letters, numbers and symbols best safeguards your bank data.

• Install software that protects your computer from viruses (which can corrupt your files) and spyware (which can surreptitiously transmit your data to another computer). Three user-friendly choices: Symantec's Norton Internet Security 2008, Kaspersky's Internet Security 7.0 and McAfee's Internet Security Suite. All cost $70 to $80.

Banking on the Run
Cell phone, or mobile, banking makes sense for people on the go who want to quickly pay a bill, check a balance or transfer funds. Baer Tierkel, a software developer in Amherst, Massachusetts, monitors his accounts with his cell phone while shopping. "Before I started tracking and categorizing my spending this way, I never knew where my money was going. Once I saw I was spending too much at my dry cleaner, I found a less expensive one. I'm saving $15 a week."

You'll need a cell phone with Internet and data access; ask your carrier about fees. And you'll want a bank that guarantees "total security."

The three main technologies: text messaging, downloadable applications and a wireless browser. All have pros and cons, but Citibank and Bank of America work on a wide range of phones and carriers.

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You could have knocked me over with a feather when my two older daughters, both in their 50s, announced they were marrying their longtime boyfriends. "Well, no one can accuse them of having a shotgun wedding," I joked when I shared the good news with their younger sister."You got that right," Lori agreed. "More like a stun gun wedding."  

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