Saturday, March 7, 2009

Internet Savings Account

In the past few years, there has been a slight increase in the use of internet savings account. Sadly, not many people still realize the benefit of this service. People like to think that online transaction is still not safe and thus, leaving internet savings account behind. Therefore, should we use internet savings account? This article will answer this question.

What is internet savings account?

Actually, this service is just the same as other saving accounts but, all of the transactions are to be made online. That means you can still keep your day-to-day bank accounts and use internet savings account as a place to save some portion of your earnings. internet savings account has many advantages compare to the ordinary saving accounts. This will be discussed in detail below.

Internet savings account advantages

Usually, internet savings account offers higher interest rates as they can operate in more cost-efficient manner. This is because they do not have to have large number of man power to run the service. They can also save the cost of establishing lots of branches as all of the process can be done at one branch. Therefore, they experience low level of handling and operating cost. Then, public will be the one who enjoy the benefit as we can get higher return of investment from higher interest rates.

And as all the transactions done online, we do not have to go the bank branch to do the money transfer to our saving accounts. I do realize that nowadays, many bank offer automatic fund transfer in which money will be transferred automatically from current accounts to saving accounts. But, this option usually will be charged as a service charge. As far as I know, there are many internet savings account that do not charge any service fee for this service.

Usually, internet savings account allows you to withdraw your money anytime you want. And some of them even calculate the interest in daily basis. That means you will earn higher than if you save your money in the saving accounts that count your interest in the monthly basis.

Is there any disadvantages in internet savings account?

Of course. There is nothing in the world that is so perfect. internet savings account also has some disadvantages. One of them is as all of the transactions are done online; security is the main issue that holds people from opening this accounts. They said that there is a potential of losing some money if they using this service. But, recently, many of the internet savings account providers have upgraded their system so people will feel safer when investing with them. For example, Raboplus, the internet savings account that I use, has high level of online banking security. The main bank, Rabobank, has been voted as the world’s safest private bank in 2005 by Global Finance magazine; the world’s leading finance magazine.

What should you do?

If you convince that internet savings account is the best choice for you, find one and start saving today. If you want to enjoy the higher interest from your hard-earned money, go for internet savings account. You can find internet savings account quite easily. Just look for this service using search engine and compare the features before you start your internet savings account. Remember; think first before you make any choices.

By : Lyme L.
Lyme L. is the owner of the Millionaire blog. For more useful info and articles, log on to

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