Advantages and Disadvantages of an Online Savings Account

Added: (Mon Mar 15 2010)

Pressbox (Press Release) - Consider the pros and cons of an online savings account on your own before you decide to follow the bandwagon and get one for yourself.
With the world moving on to the cyberspace for all their requirements, today banking is not far behind. An online savings account is one of the latest steps that the banking industry has taken towards changing the manner in which the retail banking industry works. While there was always the option of Internet banking and online trading options, an online savings account is a different level altogether. Here are some advantages and disadvantages of an online savings account.


Advantages of an online savings account

- Higher rate of interest

- Higher level of freedom on withdrawals as compared to fixed deposits

- Lower level of or an absence of savings account fee

- Easy funds transfer by connecting various accounts

- Saving possibilities at all levels in terms of amount with some online savings account with no minimum deposit whatsoever

Disadvantages of an online savings account

- No personal attention from a bank teller or a customer service executive

- Deposits with a lag funds need to be deposited using a primary transaction account or sent by a check

- No ATMs or Automated Teller Machines While the speed of service is quick, withdrawing money from an online savings account may require a couple of days as the money gets transferred to your primary transaction account

- Higher levels of research before choosing Online savings account are generally not run by the well known banks. So before putting money into an online savings account, a higher level of research is required to judge the authenticity of the online bank.
Mel writes about online savings account among other finance related topics.