1. FINANCIAL AWARENESS Checking & Savings Accounts Lesson 5: Online Banking – Part 2 Instructor PowerPoint Copyright © 2009, Thinking Media, a division of SAI Interactive, Inc. All rights reserved. The Career Ready 101 logo is a registered trademark and Career Ready 101 is a trademark of SAI Interactive, Inc.

2. 2 Online Bank Security When you setup your online account, you will create a personalized login and password that only you will know. Just like your ATM Personal Identification Number (PIN), you need to keep this information in a secure place.

3. 3 Online Bank Security Security is always a concern with any Internet financial transactions. However, if you are accessing the information over a secure line, the information is usually encrypted. This means your logon and information is converted to a code each time you logon making it virtually impossible for someone to steal your code.

4. 4 Online Bank Security To ensure you are accessing your account over a secure line, you will usually see an icon of a Closed Padlock or Key with a message stating you are accessing a secure area. Most online banks also have high-tech software installed, usually referred to as a firewall, to protect customer information.

5. 5 Online Bank Security Cont. Beware of an Internet scam called ‘phishing’ where crooks send out emails that look exactly like emails from your bank fishing for confidential information such as your account number and password.

6. 6 Online Bank Security Cont. These emails often claim that some account or personal information is needed. It will usually ask you to click on a link and enter your personal information. As a rule, you should never click on a link in an email or call a phone number referenced in the email. Instead, call your financial institution to verify the legitimacy of the email message.

7. 7 Online Bank Security Cont. There are always creative crooks out to steal something! Most online banks will never solicit account or password information from you via email. If something on your online account does not look right, contact your bank immediately.

8. 8 Sample Phishing Email

9. 9 Online Bank Security Cont. Here are some tips to help keep your online bank account safe: Create a separate Username and Password for each of your online accounts and websites (e.g., email account, online bank account, job search account, etc.). Each should be unique and difficult for others to guess. Use a combination of letters and numbers. Never include personal information in a password.

10. 10 Online Bank Security Cont. Memorize your Username and Password. Never write it down or give it to anyone. Change your Username or Password frequently. When you are finished banking online, click the Sign-Off or Log-Off button instead of just closing the browser window (X).

11. 11 Distribute Exercise #2: Online Banking. You will use this handout throughout Online Banking – Part 2 to mark your responses to questions. Exercise #2: Online Banking

12. 12 Directions: Select the best answer to this question. Question 1 Which of the following should you do to help keep your online bank account safe? Exercise #2: Online Banking – Question 1 A.Change your username and password frequently B.Use a combination of letters and numbers when creating your password C.Do not use the exact same logon and password for all of your accounts D.All of the above

13. 13 Advantages of Online Banking Here are some advantages to using online banking: You can access and manage all of your bank accounts on one secure site. Online banking sites are available 24 hours a day, 7 days a week, 365 days a year, so you always have access to your accounts.

14. 14 Advantages of Online Banking Online banking is easy to access. If you are out of town or out of the country, you can always access the most up-to-date information on your accounts via the Internet. Online bank sites generally process and confirm transactions at a quicker rate than an ATM. Most online banks are compatible with money management and personal finance software programs.

15. 15 Advantages Online Banking Cont. Online banking saves time and money. Since bills are paid online you do not have to waste time writing and mailing checks. Online bill pay is quick and easy, once the amount is entered and the due date is scheduled, the funds are automatically deducted from your selected account.

16. 16 Advantages Online Banking Cont. Online banking, especially through a traditional bank, is usually free or included in your monthly service fees. At traditional banks, you have access to your accounts online and can still go to your local bank for personalized service or an ATM. ‘Virtual’ online banks charge for their services, however, it is usually minimal and you can earn a higher interest rate because they do not have large overhead expenses.

17. 17 Disadvantages of Online Banking Here are some disadvantages of online banking: One of the biggest issues individuals have using online banking is learning to trust it! Did my transaction go through? If in doubt, print it out! Keep a copy of the transaction receipt until it is posted online.

18. 18 Disadvantages of Online Banking Security is an issue with Internet transactions; however, with encryption, you can be assured your transactions are safe. No in-person service. With ‘virtual’ online banking you do not have face-to-face access to an actual person. You have to communicate via email or phone.

19. 19 Disadvantages of Online Banking If you have to deposit cash or checks, you still have to make a trip to the local bank or ATM. For ‘virtual’ banks, you will need to either mail the deposit or use an ATM if applicable. Not all ‘virtual’ banks have access to an ATM without additional charges.

20. 20 Disadvantages of Online Banking Sometimes online banking websites go down. If you are with a ‘virtual’ bank, you might consider maintaining an account with a local bank as a backup so you are never without access to cash until the problem is resolved.

21. 21 Disadvantages of Online Banking Most ‘virtual’ banks do not own ATM machines; therefore, they will usually charge a surcharge for using another bank’s ATM as well as incur a fee by the ATM’s owner. The convenience of accessing your account information 24/7, paying bills, transferring money and managing your accounts online far outweigh the risks.

22. 22 Directions: Let’s see if you can correctly identify the advantages and disadvantages of online banking. Question 2 Read each of the statements, then select whether it is an ‘Advantage’ or ‘Disadvantage’ of online banking. Exercise #2: Online Banking – Question 2 StatementAdvantageDisadvantage Online banking sites are available 24 hours a day, 7 days a week, 365 days a year. No face-to-face personal service. Online bill pay is quick and easy and saves time and money. Security can be an issue with Internet transactions. Online banking is accessible at anytime from anywhere with Internet access. Sometimes online banking websites go down.

23. 23 Online Banking Summary Online banking is utilizing the Internet to do the same types of transactions that you would do at your ‘physical’ bank location. You can pay bills, transfer money, manage your account online and even make deposits with some online banks.

24. 24 Online Banking Summary Online banking makes it quick and easy to perform your everyday banking needs at home without making a special trip to your local bank or ATM. Online banking gives you access to your account information 24 hours a day, 7 days a week (24/7).

25. 25 Topic Quiz: Online Banking Directions: Circle the best answer to the question. Question 1 What is online banking? A.Accessing your bank account by Internet B.Accessing your bank account by ATM C.Accessing your bank account by phone D.Accessing your bank account by fax

26. 26 A.What services are available online? B.Is online banking included with my checking and savings account? C.Is there an additional cost for using online banking? D.All of the above Question 2 When selecting an online bank account, which question should you ask?

27. 27 A.Ability to pay bills by ATM B.Ability to pay bills online C.Ability to pay bills by mail D.Ability to pay bills by email Question 3 What is online bill pay?

28. 28 A.Personalized username and password B.Information is encrypted C.Banks utilize security software D.All of the above Question 4 Which of the following helps ensure online account security?

29. 29 A.Make deposits at your local bank B.Use ATM to transfer money from one account to another C.Access information 24 hours a day, 7 days a week, 365 days a year D.Write checks to pay bills Question 5 Which of the following is an advantage of using online banking?

30. Lesson 5: Online Banking – Part 2 END OF LESSON