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Are Internet banks safe?
BC writes:
I am thinking about moving my money from a mutual fund to an ING account earning 3.25 percent because it is FDIC insured. How safe are Internet-based banks?
Internet banks displaying the FDIC logo are just as safe as "bricks and mortar" banks and you should feel comfortable investing with them. ING, in particular, has been around for quite some time and they have a solid reputation. However, you need to know that not all banks operating on the internet are insured by the FDIC. Many banks that are not insured are chartered overseas. To be certain that the bank you are considering is FDIC insured, check the FDIC's on-line database of insured institutions. You can search this database by bank name, city or zip code.
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Local finance professionals share insights and advice on issues such as
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Jill Boynton is co-founder of Cornerstone Financial Planning in Newington, N.H. Along
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Andrew Chan is the
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Cheryl Costa is a
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Jamie Downey has been an
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