Comments on: Online Savings Accounts and Their Backers http://thefinancebuff.com/2007/03/online-savings-accounts-and-their.html like a friend telling you about money ... Fri, 10 Sep 2010 02:38:28 -0400 http://wordpress.org/?v=2.8 hourly 1 By: Scott http://thefinancebuff.com/2007/03/online-savings-accounts-and-their.html/comment-page-1#comment-1371 Scott Thu, 22 Jan 2009 14:58:01 +0000 http://blog.thefinancebuff.com/?p=89#comment-1371 "It’s inconceivable that a smaller bank has the same level of investment or sophistication in security measures as a bank several hundred times larger." To me that's not inconceivable at all. A smaller bank is just as likely to be forward thinking as a large behemoth, and is just as likely to pay attention to their web development team (or to who they are looking to hire), in terms of how strong their security really needs to be. Sure, a larger bank would theoretically have more resources to throw at security, but they are also just as likely to have more layers between decision makers as well. Big doesn't always mean better. It's the bigger ones that are also in the most trouble right now. “It’s inconceivable that a smaller bank has the same level of investment or sophistication in security measures as a bank several hundred times larger.”

To me that’s not inconceivable at all. A smaller bank is just as likely to be forward thinking as a large behemoth, and is just as likely to pay attention to their web development team (or to who they are looking to hire), in terms of how strong their security really needs to be.

Sure, a larger bank would theoretically have more resources to throw at security, but they are also just as likely to have more layers between decision makers as well. Big doesn’t always mean better. It’s the bigger ones that are also in the most trouble right now.

]]> By: Anonymous http://thefinancebuff.com/2007/03/online-savings-accounts-and-their.html/comment-page-1#comment-270 Anonymous Tue, 02 Oct 2007 15:21:00 +0000 http://blog.thefinancebuff.com/?p=89#comment-270 Was about to ask about Paypal's money market account but realized it isn't Federally Insured. It is managed by Barclays. Was about to ask about Paypal’s money market account but realized it isn’t Federally Insured. It is managed by Barclays.

]]> By: MoneyMan http://thefinancebuff.com/2007/03/online-savings-accounts-and-their.html/comment-page-1#comment-93 MoneyMan Tue, 20 Mar 2007 00:21:00 +0000 http://blog.thefinancebuff.com/?p=89#comment-93 Very interesting stats. I wasn't aware that Flushing Savings Bank (from my hometown of NY) was backing an online bank.<br/><br/>Personally, I wouldn't worry too much about the size of the bank because savings deposits are FDIC insured and I have seen firsthand how well regulated savings banks are. Even if one went belly-up, as a savings account holder, you will be first in line to receive your cash back.<br/><br/>That said, I'm not a fan of using tiny banks because they often lack some of the bells and whistles you can get with a bigger bank. Very interesting stats. I wasn’t aware that Flushing Savings Bank (from my hometown of NY) was backing an online bank.

Personally, I wouldn’t worry too much about the size of the bank because savings deposits are FDIC insured and I have seen firsthand how well regulated savings banks are. Even if one went belly-up, as a savings account holder, you will be first in line to receive your cash back.

That said, I’m not a fan of using tiny banks because they often lack some of the bells and whistles you can get with a bigger bank.

]]>