By Carmen Wong Ulrich

Question: I was wondering if internet banking is safe for consumers.  I have heard about them before and that some of them offer higher interest checking than most banks.  Is that true?

• -Catrice from Alabama

Answer:  Online banking is very safe-some say even safer than regular banking since there's little paper floating around with your information on it.  Mostly in order to compete in the marketplace (and with low overhead-no tellers or branches), web banks offer some of the highest checking and savings rates around, higher or as high as what we call 'brick-and-mortar' banks. 

But if you're looking to make the switch, do it soon as rates at all banks may be heading down with lowering Federal interest rates-a good thing for lowering interest on debts, but a negative for earning interest on savings and checking accounts.  To shop for a great internet bank with high-yield savings accounts and checking accounts that earn interest, head to Bankrate.com.

EXCERPTED FROM CARMEN WONG ULRICH'S BOOK

From the book GENERATION DEBT: Take Control of Your Money--A How-to Guide by Carmen Wong Ulrich. 

(c) 2006 by Carmen Wong Ulrich.  Reprinted by permission of Grand Central Publishing, New York, NY. All rights reserved.

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