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Making the most of internet banking

Learning exactly what online banking has to offer may allow you to combine its benefits with the familiarity of conventional banking to make the whole task easier.

Online banking provides a number of advantages for both customers and banks.

For consumers the advantages are:

  • The ability to access your account anytime of day, almost anywhere.
  • Easier management of finances; checking account balances, transferring funds and paying bills.
  • Cheaper banking; fees and charges are typically much lower
  • Saving time; online transactions and applications are often quicker than standing in line or making an appointment.

For the banks, time really is money. Online banking allows the customer to conduct transactions alone, decreasing the need for tellers at bank branches, and - in many cases - the branches themselves.

However, the major banks are aware of the shortcomings of internet banking and are not about to abandon face to face contact. Currently in favour is the American 'clicks and mortar' industry model. This model encourages customers to use online banking for basic transactions, freeing up staff for services like financial planning and guidance at branches. So while there are banks which conduct their business solely online, should you wish to use them, not all banks are necessarily set to follow this path.

The internet is a powerful and vital medium capable of offering a time-saving and cost-effective way of banking for customers and banks.



  

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Today's Savings Rates

Institution Product Max. Rate (%) Details
USaver (Base Rate 5.41%, Bonus 0.60% with savings plan) 6.01 Details
ANZ Online Saver (6.00% p.a. until 30th June 2012) 6.00 Details
Savings Maximiser (5.85% p.a. variable intro rate for 4 months on balances up to $250,000) 5.85 Details
Citibank Online Saver (5.80% Variable intro rate for 6 months on balances up to $500k) 5.80 Details
Institution Product Max. Rate (%) Details

The above products are some of the top rates available in the market. Based on promotional or introductory rates for an online savings account of $5,000.