How Safe are Online Banks?
The other day I was talking to my mother about how all of our savings and emergency fund is at ING. I have been an ING customer for years, and have had nothing but good experiences with them. They offer a really competitive rate on their high yield savings accounts- of course it’s not much now, but what savings accounts are paying a good rate now? I really like banking with ING because they don’t require a minimum balance and no monthly fees. I’ve also got a few accounts set up with them for specific purposes, like car insurance, escrow, and our emergency fund. It helps me keep those expenses separate and make sure I have enough money for each event.
My mother was concerned about the safety of using an online bank. She doesn’t do online banking at all and I don’t think she ever will. That’s fine. She just said I may want to think about moving my money to a brick and mortar bank because it’s safer. With all the bank failures over the past couple years, I don’t know if I trust a brick and mortar bank over an online only bank like ING.
Of course, after she mentioned it I got worried. What if my information got stolen and someone logged in and added a new bank account that wasn’t actually mine? They could steal all my money. Of course, I’m not too worried about someone transferring money to my main checking account, as I would notice a large deposit in my checking account right away.
I know that online banks work hard at keeping their software updated to prevent stolen identities and hacked accounts. I truly hope no one I know ever has a bad experience with the safety of online banks. With ING when you log in you have to enter your customer number, wait for your special image and phrase to show up, and then enter your pin using the keyboard numbers. It’s just a 4 digit pin versus a regular password, and that concerns me. I haven’t had any problems for over 5 years, so I don’t think I should be so concerned.
I guess my generation is used to online banking and doing things online that involve money. Pretty much everyone I know that’s my age uses online banking, paypal, and other means to move money online. It’s just the norm, so there really isn’t much apprehension about the safety of online banking. I know that people are concerned about the safety of online banking but they trust that the banks are doing everything they can to protect their clients’ identities and account information.
I hadn’t really given it a second thought to banking strictly with ING as far as our savings accounts go. I haven’t had any problems with security, so why worry now? I have to admit that I have been considering switching our account (or at least part of it) to a brick and mortar bank in town.
Do you use an online only bank like ING? Are you concerned about the safety of online banks?