The Money Blog

According to a recent article in the Iceland Review, says Icelandic Banks in the UK are benefiting from recent banking crisis in the UK and US. Icesave and Kaupthing Edge have seen surge in business after UK customers lost faith in their own banks.

Kaupthing said that Monday was in fact the fourth best day of business since it launched its Edge savings account in February this year.

If this article is true, you will expect in the months more UK and US banks facing credit crisis and since depositors are taking out their money, the Central Bank will have to bail them out.

If you’re like most people, you’ve heard a lot about online banking but probably haven’t tried it yourself. However over recent years online banking has become increasingly popular. Online banking (Internet Banking) can be said as the mode of banking where bank services like transaction, payments, etc are executed over the internet through a bank’s secure website of a retail or building society bank. Online banking allows us to make deposits, withdrawals and pay bills all with the click of a mouse.

There are many benefits to have an online bank account.

1. Convenience - With online banking you do not have to even leave the house or pick up the phone in order to conduct your banking transactions. Thanks to the Internet you can now perform these transactions from the comfort and privacy of your own home, and at any time of the day or night, so there are no time constraints to worry about.

2. Transaction speed - Many people with full time jobs have had to rely on their lunch hour to try and get to the bank and conduct a transaction in the past. Often this resulted in lengthy queues and rushing around, with little time to actually enjoy your break and have a bite to eat. With online banking you can conduct your transactions or check your statement at the touch of a button, saving you time and hassle.

3. Special incentives - Often you will find that online banks offer special incentives and offers to those that open up a bank account or interest savings account with them, such as a sum of cash credited into the account once you have been a customer and met the necessary requirements for a specified amount of time.

4. Environmental friendly - Online banking also eliminates paper waste, which is a plus not only for those who have to handle all the paper work, but also for the environment

Just as with anything else, there are disadvantages to online banking.

1. Time taking to open an account - Online banking sites can also take a while to start up and can be difficult to learn at first. Some banks require customers to provide some form of photo identification in addition to signing a form at one of their branches.

2. The trust: For many people, the biggest hurdle to online banking is learning to trust it. Did my transaction go through? Did I push the transfer button once or twice? Of course, you can overcome any uneasiness by printing the transaction receipt. This receipt will conform whether or not your transaction has gone through successfully. However, most online banking sites provide tutorials for online banking.

Clearly, online banking has both advantages and disadvantages. But the advantages out weight the disadvantages. After a few transactions you will agree that the online bank provides you better control over your finance.

There is no doubt about the fact that identity theft is on the increase. More and more people are losing their identities and money each year. By knowing how to protect yourself while banking on the Internet you can reduce your risk of identity theft while still taking advantage of the numerous advantages online backing.

1. Never use unprotected PCs at home, cyber-cafes or workplace for Internet banking.
2. Never keep your Login PIN or password and credit/debit card(s) together.
3. Never leave the PC unattended when on Internet banking in a public place.
4. Never reply to e-mails asking for your password or PIN.
5. Never use the same Login PIN or password for your online banking to register for other internet services that requires you to provide a pin or password.
6. Never visit banks’ website by clicking on a link in an e-mail arrived in your inbox, always typing the URL in to the address bar.
7. Before using Internet banking, verify the domain name displayed to avoid spoof websites.
8. Log off and close your browser after finishing using Internet banking.
9. Check your monthly credit/debit card statement for unusual activity.
10. In public never let a stranger assist you using your online banking. Protect your Password and login PIN