Internet savings accounts quickly followed the digital revolution to become some of the most competitively priced accounts in Australia. But they do more than simply provide high interest; many savers prefer their convenient and ‘paperless’ system.
Why so high?
Internet savings accounts don’t just benefit the customer. The costs of maintaining an internet savings account can be lower than other accounts due to fewer transactions and cash withdrawals.
However, savers typically have to meet certain conditions to be eligible for the high rate of interest. Conditions can include minimum monthly deposits or no monthly withdrawals, for instance. The high rate acts as a strong incentive to ensure a regular inflow of funds.
Perks and catches
One of the biggest arguments for having an internet account is the convenience. Combined with online banking, customers can move their spare savings to a high interest account while keeping a healthy supply for everyday needs.
Many internet accounts also have no minimum balance, and can be set up with just a few clicks of the mouse.
The downside for some is that internet savings account providers may not always have a branches or ATMS. Those that do might not offer ATM cards for withdrawals, so the most convenient option is always linking the internet account to a basic account.
For those not comfortable with having “internet” and “savings account” in the same sentence, due to concerns about online fraud or security issues, there may be a lot of pleasant surprises that come from converting to online banking.
Firstly, being able to do your banking at anytime from anywhere can be a relief for many savers. This includes international and foreign currency transactions, as well as transfers such as BPay.
And save the world one letter at a time by reading all of your bank statements online. Between the time and resources that you save, online banking may certainly be a service to consider.
The tech-savvy savers even take advantage of smartphone applications to really bring new meaning to “on-the-go banking”. These applications allow you to check your balances, make transfers and payments, but as new versions are developed, their services will become more sophisticated.
Compare internet savings accounts online for some of the highest interest rates in the country. And think about online banking for some added convenience in your savings lifestyle. Follow our news articles to get the latest savings tips.