BOGUS CD RATES REVEAL BOGUS ON-LINE BANKS
Internet banking rates can be too good to be true. A company called Federal Savings offered an 8.85 percent rate on a six-month CD on its internet banking site. When bank rating agencies sought more information, the company's Web site disappeared. Later it popped back up with a 6.25 percent rate. When questions concerning the companies operations were directed to Federal Savings the company did not answer. Its Web site is down again, and the company could not be reached. To see whether a bank is federally insured, go to http://www.fdic.gov/.
Banking scams are growing on the internet and caution is advised. Make sure that the internet bank you have selected is legitimate. In addition carefully look at the name and URL (website address) of the bank in question. In the example cited above, there are many legitimate banks with Federal Savings in their name. So don’t be confused by names which sound legitimate or resemble know banking institutions.
Fraudulent banks on the internet can steal both your money and your identity. Use caution in selecting internet banking sites.