Things to consider before opening internet savings accounts

The hardest part of opening internet savings accounts is choosing the right one for you. Virtually all the well-known banks offer internet-only accounts as well as a variety of specialist firms. Some firms are purely internet-based, meaning they have no bricks-and-mortar branch. Because of the decrease in overheads, such as paying for a branch shop and paper statements and billing, some internet savings accounts offer attractive interest rates as a result.

Choosing an internet account is pretty much the same as choosing as an average account; you are looking for the best way to increase your savings with as little hassle as possible. Before choosing an account it is important, you decide what services you require from your account provider. For example, many internet savings accounts can only be dealt with online, regardless of whether they have high street branches or not. If you prefer being able to call in to a branch and talking with staff, an internet account is probably not suitable for you. The same can also be said for phone calls, many online accounts provide no helpline numbers, relying instead on an email or instant messaging system. This may mean you wait a little longer than you would with an average account to have your queries answered.

Of course, one of the major advantages of having internet savings accounts is the ability to log on and manage your account where ever and whenever you feel like it. If you have a burning desire to check if your pay has cleared at one-minute past midnight, you can do this easily from your home computer. With a branch account, you would have to either walk to an ATM or contact your branch in the morning.

One of the top providers of internet savings accounts is an internet-only entity. BM Savings offer a 4 or 5 year fixed rate of 4.5% with a minimum deposit of just £1. There are late penalty fees associated with this type of account if you wish to make a withdrawal within the time period. The Post office also offers an internet-only account, with a 3.0% APR, you can make withdrawals whenever you want without a fee and you can manage your account completely online. They do have a helpline phone number if you have an emergency that cannot be dealt with over the internet.

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