Is it safe to bank online

Asks jellybean

A. Yes it is, the banks assure us that our money is as safe in an Internet bank as it is in a high street bank. All banks use safe encryption devices and guarantee the safety of your money as long as you guard your personal details e.g. password etc.

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Q. What are the advantages of online banking

A. There are many advantages, these include:

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- access to your account 24 hours a day, you can usually see transactions for your account for the last 90 days.

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- You are in greater control of your account as you can organise direct debits, standing orders, money transfers or even swap money around if you have more than one bank account - all online.

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- Internet banks usually offer higher interest rates on current accounts - sometimes up to 4% higher than high street banks. They can probably afford to do this because they have fewer overheads than a traditional bank.

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Q. How would I access my account

A. Using the Internet you will be able to get all the information on your account once you have typed in a password, user name and personal identification number - all set up for you when you open an account with your chosen bank.

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Q. How can I withdraw and deposit money

A. You can withdraw money at ATMs using debit cards and credit cards issued by Internet banks. You can deposit money into any associated high street bank e.g. First Direct is affiliated with HSBC, Smile is affiliated with the Co-operative Bank, without being charged or you can send cheques or postal orders by post.

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Q. Can I bank online with my current bank

A. There are two types of Internet bank - the first is an extension of your normal high street bank (most banks now have some representation online - Barclays and NatWest are very good), you can just access your account details online. The second is an electronic or Internet-only bank that does not have high street branches and offers the advantages listed above.

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Q. How would I find out the web address of a high street bank

A. It will probably be printed on all of the literature you've received from your bank, but if you're stuck the addresses are as follows:

Bank of Scotland - www.bankofscotland.co.uk

Barclays - www.ibank.barclays.co.uk

Citibank - www.citibank.co.uk

Co-operative - www.co-operativebank.co.uk

Halifax - www.halifax.co.uk

HSBC - www.hsbc.co.uk

Lloyds TSB - www.lloydstsb.co.uk

Natwest - www.natwest.co.uk

Royal Bank of Scotland - www.rbs.co.uk

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Q. Can you recommend some Internet-only banks

A. The following banks are Internet only; we have listed them in alphabetical order:

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Cahoot�

Cahoot is affiliated to the Abbey National. It does not charge any fees on your current account, you are given an automatic overdraft (starts at �250) when you open your account and Cahoot guarantees complete protection from unauthorised transactions on your account. It also offers a credit card, its APR is currently only 8% APR (great when compared to the likes of Barclaycard at 19.4% or 18.4% on HSBC’s Mastercard) and it offers purchase protection and discounts from online stores.

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Egg

Egg is affiliated to the Prudential. It is a savings bank that offers great interest rates and low APR (2/5%) on your new credit card for 6 months if you change your existing credit card over to The Egg Card. You can also have your goods insured for free when shopping online if you spend more than �25 at a time. Its web site is very start-of-the-art, unique and easy to navigate. If Internet banking fazes you, Egg has a great telephone support team that will help you out.

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First Direct

First Direct is affiliated with HSBC. As it was the UK's first telephone bank its customers are used to branchless banking. Unfortunately, you cannot bank online if you use a Mac, at the moment it is only PC friendly.

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First-E

First-E claims to be the first Internet-only bank for Europe and promises a better service than its competition. It offers very high interest rates and you can even access your account using a WAP phone.

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Smile

Smile is affiliated to the Co-operative Bank. As a result of its hugely successful advertising campaign, Smile is very popular with young people and was originally over-subscribed - it is only just calming down now. It offers high interest rates on current accounts, higher on savings and a good credit card.

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If you have any other Internet and Technology questions, please click here

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By Karen Anderson