Finding the Best Internet Account

2007-08-15T23:00:00Z

The internet has opened new doors as far as banking goes. From convenient paperless transactions to instant fund transfers, online banking offers it all. There is a wide number of banks that offer their services online. However as a customer who is looking out for the best deal, there are some guidelines to help you pick the best internet account.

Hunting for the Best Internet Account Deal

When it comes to online banking, almost every bank will offer a set of basic features. These features are a given, and their availability shouldn't fluctuate much between different banks. However, in today?s age of fierce competition, banks are going the extra mile to cater to unique requirements, sometimes even offering an extra perk here and there. While searching for the best internet account, be sure to find out all there is to know before deciding on any particular bank. Here we provide some tips to help you get started:

Basic Features

Most banks offer certain essentials in terms of online banking services. Some basic services that any online bank will offer include checking balances, reviewing transactions, transferring funds and editing your contact information in the bank's database.

Additional Features

To stand apart from the crowd and to provide the best internet account available, many banks today have started offering new and diverse features as far as their online banking services go. Here are some of the facilities these banks offer:

Monthly income online savings accounts: These may be either notice or no notice accounts. Interest can be accrued on a monthly basis instead of opting for the annual mode or on the maturity of your account. This is very useful if you wish to consider receiving a regular source of income via interest earned.
No notice online savings accounts: These accounts do not require a notice or permission from you to withdraw funds. Even if you do decide to withdraw funds, you will not incur any penalty like a loss of the interest earned.
Notice online savings accounts: In these types of accounts, one needs to provide a notice to the bank before withdrawing any money from the account. If no notice is provided, it can result in a penalty like a loss in interest earned. The amount of notice to be given will depend on the type of account chosen by you. This is an important factor to consider while looking for the best internet account.
Cash card: Many of the online savings accounts offer the facility of a cash card. A cash card allows a person to withdraw money from an ATM. However there is usually a daily limit placed on the amount that can be withdrawn. This is regardless of the amount of funds present in your account.

Things to be Cautious Of

There are several things to be cautious about while hunting for the best internet account. In the excitement of getting access to an online savings account, many people tend to overlook these factors. Here, we outline some things you need to be careful about:

Restrictions on account opening: Some banks have a rule that an online savings account can only be opened by customers of that bank or only by local residents.
Minimum deposit: Some banks require you to open a savings account with a certain minimum deposit.
Number of withdrawals: Some banks place a cap or a maximum limit on the number of withdrawals that can be made. If you happen to exceed this number, you may even lose out on the interest earned.
Bonus interest rates: As a promotional offer, some banks offer a bonus interest rate for a specific duration. This can serve to bring in significant profit and savings. However while shopping for the best internet account you need to find out what the rate is after the promotional period. Often times, the interest rate will take a significant fall, so beware of this.

The Different Types of Internet Accounts

2007-08-15T23:00:00Z

Internet banking has revolutionised the way banking functions. All financial transactions are now quick and easy, and most importantly, they do not require a visit to the bank branch. It is very easy to open an internet based account through your bank. However, before doing this, it is essential to know the various types of internet accounts that are available.

Kinds of Accounts

When it comes to online banking, you will find a wide range of accounts to choose from. The kind of account you choose will depend on your individual goals and financial considerations. Here are the main types of internet accounts:

Current account: A current internet account provides all the features that an ordinary current account provides. It will also provide you with credit and debit cards, cheque books and financial statements on a regular basis.
Offset accounts: Offset types of internet accounts serve to consolidate all your mortgage, current accounts, as well as your savings account with one single bank. Such accounts also allow a person to consolidate personal loans and outstanding credit card balances into it. This provides a means to build substantial savings because of an overall lower rate of interest that gets applied. Such accounts are also known as all-in-one accounts. The reason offset accounts work favorably is because any incoming money into the account serves to reduce the overall payment towards the mortgage or loans.
Student accounts: These accounts are primarily targeted at students, as the name implies. Unlike other account types, these accounts are more flexible, owing to the fact that students are not financially as stable as regular salaried professionals. Therefore, these internet accounts provide overdraft protection, access to money whenever needed, as well as a rising overdraft limit every year. These also provide a much lower interest rate on credit cards. In many cases, students will not be charged if they accidentally slip into a negative balance.
Savings accounts: This type of an internet account provides a higher rate of interest and therefore helps to promote good saving habits. You do not receive a cheque book or a debit card, which means you cannot shop in stores with this account type. Some accounts require you to seek permission before making any withdrawals or they may place a limit on the number of withdrawals you can make per month.
ISA: Also known as an individual savings account, these internet accounts allow you to deposit money while also saving money by earning interest. One of the good things about an ISA is that it is exempted from tax. There are two types of ISAs ? a cash ISA and a stocks and shares ISA. Currently the limit for each component of the ISA is £3,600. However, this is shortly to rise to £5,100 (in October 2009 for savers aged 50+ and in April 2010 for everyone else).
Offshore accounts: These refer to accounts which are held with banks located outside the UK banking system. An offshore account located in the Channel Islands will serve to operate in the same manner as a mainland account. Not all UK citizens are allowed to open an offshore account. However, a British citizen who is staying in another country can open an offshore account in the Channel Islands for maximum convenience. This is because it serves to operate just like a mainland account thus providing all the conveniences associated with it.

As seen above, there are many different kinds of internet accounts, each with its own features and benefits. You now have a base of information from which to draw when deciding what type of internet account will best suit your needs.

SimplyFinance - Internet Accounts

Finding the Best Internet Account

The Different Types of Internet Accounts