Internet Only Accounts

These days many people spend several hours a day online. And in response to this, more and more banks and other financial institutions are offering an increasing range of their products and services online.

Whilst most of us are converts to online banking and use it regularly to save branch queues and to move our money where we want it at any time of day, many people still prefer savings accounts that they can access in the branch or over the phone.

However, if you want the best interest rate, the chances are that if you refuse to give up some methods of access to your account, you won't be able to get it.

That's because internet savings accounts tend to have one big advantage - the best interest rates.

The reason why this is the case is that the online channel is that which costs the bank the least to service. If you go into the branch and talk to a member of staff and take out money, then the staff costs and branch costs are all there for the bank to meet.

However if you do a transaction online then there are no staff involved or physical branch and the whole process is automatic.

Also if there are no statements to send out then again the bank saves on cost and resources in terms of paper, stamps, envelopes.

All this in turn means that these savings can be passed onto the customer as internet only accounts are the easiest for banks to run in terms of overheads and the administration side of the account.

Overall therefore the big advantage of an internet only savings account is that your money will tend to work harder for you as you will get a better rate of interest - and surely that is worth giving up being able to access the account by phone or in branch in most cases!

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