Online Banking

The Problem:

Ben Franklin is credited with saying, "Compounded interest is the ‘eighth greatest wonder of the world!’" If Franklin were alive today, he would certainly marvel at the efficiency with which we can use computers not only to keep track of compounded interest, but also to make all manner of banking easier and faster. If you want to be more frugal about the time spent on mundane banking tasks while maintaining closer control over your money, online banking may be the answer. But, how do you make the switch from paper check writing to electronic bill paying? And is online banking really safe?

The Solution:

Before we dive into all the cool products and services available to modern computer users, be sure you are practicing safe computing. For example, do you have a firewall? Is your antivirus software updated? Have you downloaded the latest security patches from Microsoft? Are you using anti-spyware software and pop-up blockers?

If the answer is "No," then go no further. You need to be sure your computer - whether at home or at work - is adequately locked-down. If you're not sure, email me at help@supergeeks.net or call me at 942-0773 ext 22. I would be delighted to help.

Most financial institutions now offer a wide variety of online options. For example, you can trade stocks online at dozens of sites including Scottrade (www.scottrade.com), you can check your account balances 24/7 at First Hawaiian Bank (www.FHB.com) or Bank of Hawaii ( www.BOH.com), and you can turn your small business's register into an online version at QuickBooks (www.quickbooksonline.com). Larger businesses can consider NetSuite ( www.NetSuite.com). If you're new to online banking, First Hawaiian Bank offers a free demo at < https://iwbdemo.fhb.com/SITE/welcomeie.asp>.

Why should one consider managing your money via the Internet? As long as you have access to the Internet, online banking offers real-time information anytime, anywhere. Regardless if it's a national holiday or you are on three-month sabbatical in Timbuktu, you can issue checks, view balances, transfer money, automate payments and purchase investment products...all from the keyboard of your computer. This means fewer late fees, a better understanding of your finances and smarter money management.

You can even make those online banking services "talk" with other software on your computer. This means you can reconcile your accounts with the touch of a button and synchronize what's on your computer with what the bank has on file. For example, many banks will port their database with your Quicken, QuickBooks and Microsoft Money files. For more information, call your bank and visit it's web site. Check out this site, too: <http://www.fool.com/money/banking/online/one.htm>.

When banking online, please be sure to follow these security tips:

1. Choose a password that is difficult for someone to guess.
2. Memorize your password. Never write it down - unless it's in your safe deposit box. Never tell someone else your password.
3. Change your password regularly.
4. Remember to log out when finished.
5. Monitor your bank statements. Look for unusual activity.
6. If you’re using Microsoft’s Internet Explorer as your browser, consider switching to Netscape, Safari, Mozilla or Opera, all of which can be downloaded for free. Since Internet Explorer is so widely used and contains both known and unknown security flaws, it is a more common target for hackers and therefore less secure.

James Kerr is President/CEO of SuperGeeks, a Hawaii-based computer service and repair company (www.supergeeks.net). Please feel free to send your questions, comments and suggestions to Mr. Kerr. He can be reached at kerr@supergeeks.net and 942-0773.