Internet Savings Accounts: The Things You Should Know

2007-03-08 10:33:40

( Business )



Internet savings accounts are slowly changing consumers and business owners to banking. Internet savings accounts offer speed and convenience not readily available in standard brick-and-mortar banks. A lot of people also use internet everyday. Hence, online banking has a greater appeal to them than going to the bank and standing in line.

Internet savings accounts boast high interest rates and rates compared to their brick-and-mortar counterparts. They are able to do so because online banks have little overhead. They do not pay rent or utility bills. Therefore, they can offer a higher interest rate to their customers. However, interest rates offered by online banks seem too good to be true. A closer look at the fine print may give you some answers.

Internet savings accounts promise higher rates but only for a specified amount of time. If you read through the fine print, the introductory rates are only guaranteed up to a year at most. Once the introductory period has lapsed, interest rates will drop dramatically making them almost equal to their brick-and-mortar counterparts.

Online banks offer introductory rates for publicity purposes. Consumers like you often do their research on online banks with the best rates and there are some websites that provide reviews and lists of such banks. By offering relatively high interest rates, they get their name on the list therefore attracting more customers.

Internet savings accounts, like internet merchant accounts, promise the convenience of completing your transactions from the comfort of your home. You can transact anytime even at night and on holidays. Access to your account may be instantaneous. You can view your account balances and even download your bank statements. But if you want to transfer money from one bank to another, you will have to wait a few days for the transaction to reflect in your account. This is also true for deposits and withdrawals made against your interest savings account.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.