Online savings accounts are quickly becoming a popular way to grow your wealth as they help thousands to reach their financial goals sooner. They are a great short or long-term solution as they are easy to get and they offer a higher interest rate when compared to everyday transaction accounts.
Online savings accounts only operate online which is why the banks can pass on higher interest rates because it's more cost effective for them not to operate branch or phones services.
Make sure you check with your institution if you need a linked transaction account to open an online savings account.
To get the most out of your online savings account follow these tips:
- Compare online to find an online savings account that offers a high interest rate.
- Make sure you are aware of when the bonus interest period ends, as most are introductory rates available for a limited time.
- Ensure you read the terms and conditions as many accounts have conditions which apply such as limited deposits and withdrawals each month.
- Work out a budget so you know how much you can deposit into your account each month. Obviously the more money you deposit the more interest you will earn and the more savings you will accumulate.