subject: Why Choose Online Savings? [print this page] As banks and building societies scramble and compete with each other to attract customers' savings, The Guardian newspaper (17.07.2008) reported that rates have climbed to their highest in seven years. Therefore, it may be an attractive time for investors to put their money into savings accounts.
Whilst competitive rates of interest on savings is clearly good news for the consumer, however, it has also brought about a bewildering proliferation of different types the account. The same newspaper report, offering last year, the number of savings rates which are subject to fluctuations in accounts has more than 900 to more than 1,000 rose, while the number of accounts has grown to offer a fixed interest rate of 394 to 426th Almost all of the newcomers are online savings accounts.
The reason for the increase in online savings accounts has two goals and recognize quite clearly. It offers banksand building societies is probably the biggest market their goods and they can see online accounts are cheaper for them to administer and service than from costly space in the High Street.
But precisely these reasons and for consumers an attractive incentive for opening online savings accounts the yield on the savings should be better. Online savings should provide a better return because of the competition between deposit-taker, and through reduced costs of which will be passed on to savers.
In addition to the relatively better interest rate, also the line-saver also has the significant facilitation of the monitoring and management of the savings account around the clock from the comfort of their own computer at home. Given the manner in which the latest encryption technology always one step ahead of fraudsters and other criminals,>online banking can also offer a high degree of security and peace of mind.
Although online savings offer an attractive rate of interest, convenience and security, however, there are a few additional points that potential savers should take into consideration whether saving online or, indeed, more conventionally.
Conventionally at least, the best interest rate on a savings account has been the result of a trade-off against access to the save funds and the flexibility of withdrawals. Banks and building societies have to obfuscate rather then this, and has the ability to go straight comparison between the interest rates all the more difficult by the imposition of sanctions for instant access withdrawals or "bonus" for people who leave the savings untouched.
