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The Different Types of Internet Accounts

Internet banking has revolutionized 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.
  • Specific current account: This is a current account that provides specific benefits such as roadside recovery. This will be available with a small monthly fee.
  • 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.