How Can Online Savings Accounts Offer the Best Rate?
While there are some conditions which apply to high interest savings accounts, in general the best rates are offered online for standard rates, without conditions, minimum balance requirements or regular deposit amounts, online rates are simply higher because: • Online savings accounts are affordable for the banks. When a product is cheaper for a company to produce, they can afford to value-add in extra features they think their customers might like, in the case of online savings accounts, that extra feature is a high interest rate. When you open your account online, manage your own deposits and withdrawals and know exactly how to make a balance enquiry without any help from a teller, let alone a partnered ATM, the provider of your online savings account needs to spend less time, and therefore less money on your service, allowing them to pass those savings on to you. • Banks needs your cash deposits to help them do business. It is the deposits of their savings customers which allow ban
