Using Banks and Bank Accounts/Online banking

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Question
George I was looking at reviews online for some online banks, And they all seem to have some bad. I think I would call it you just cant make everyone happy. But I would like to know your opinion and comments for opening just a cd with a online bank. I know rates are bad, But I have to say there way better online than my local banks. I have heard that some of, if not all these online banks abuse or are careless with social security numbers and personal information? Maybe they even sell all your personal information that is why they give the good cd rates? If this is the kind of risks involved with online cd banking then to me it just isn't worth the extra interest. All your thoughts and advice would be appreciated.
Thanks

Answer
Hi Jerry,

Online banks are pretty much as safe as retail branches.  They are all FDIC insured and are able to pay higher dividends because there is no branch overhead, all the business is done online.

The rumors you heard about the selling of information, sounds very false.  You have the same probability of someone stealing your information in a B&M location.

Another good thing that works in your favor is that most of the online banks that are offering good rates are very well known and are big names such as GE bank, AMEX, and Ally.

Good luck  

Using Banks and Bank Accounts

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George

Expertise

Anything pertaining to Commercial or Retail Banking. Including, Interest rates, Lending, as well as Prime Rate questions. Also can help with online banking questions including all regulations.

Experience

Retail and Commercial banking since 2002. Currently employed as an Assistant Vice President at a Commercial Bank.

Organizations
Chamber Of Commerce, National Notary Association

Education/Credentials
Extensive credit knowledge.

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