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Banking Center > Online Banking > A New Alternative: Virtual Banks
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Savings3.62%
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Protecting Yourself Online

Accounts that are insured by the Federal Deposit Insurance Corp. are covered regardless of whether the bank is virtual, clicks-and-mortar, or brick-and-mortar. Your money, up to $100,000, is safe at an FDIC-insured institution.

As always, you should zealously guard the user name and password of any online accounts. That's the most important security step. Banks have a pretty good track record when it comes to security.

All banks, whether they are virtual or not, have to abide by federal privacy laws and regulations. The rules are not particularly strong. Most financial institutions will share information about you with corporate affiliates and outside marketers unless you deny permission. A few have "opt-in" policies, meaning they won't share your information unless you give permission.

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Bank information obtained from market surveys by Bankrate.com, based on non-promotional bank rates using published sources.
Copyright © 2008 Bankrate.com. All rights reserved.