Online Savings Accounts

Just as online current accounts are becoming more and more popular today, online savings accounts are also widely available. Due to the costs saved by the banking institution by not running high street branches, online savings accounts can offer very favourable rates of interest. This is also the case when a Cash Individual Savings Account (ISA) is run completely online; see Individual Savings Accounts (ISAs). Apart from the lack of a branch to visit, these savings accounts are just as accessible as traditional accounts, offering a balance overview at any time, fund transfer to and from the account and where available, incoming standing orders and direct debits (see Wire Transfer).

Terms and conditions for opening an online current account vary, but most will uphold the usual terms seen on the high-street (see Terms and Conditions). As these accounts operate wholly online, it is often required that an applicant has a current account which is accessible online, from which funds can be transferred into the savings account. Many online banking institutions request that savings account applicants already have one of their online current accounts.

As with traditional savings accounts offered on the high street, online savings accounts can take the form of instant access accounts (Instant Access Accounts) or notice accounts (Notice Accounts) and the rate of interest varies depending on the type of account an applicant chooses. Accounts offering monthly interest are usually also available; these are often favoured by people who desire regular investment returns.