Online savings accounts get hot

27/06/2011

Online savings accounts are a great option for people who need to hedge their bets and maintain access to their money. But at-call savings accounts increasingly come with conditions as well as introductory and (much lower) base rates.

At call interest rates can also fall if the financial institution decides it has enough cash on hand or the RBA lowers rates.

In 2010, RaboDirect attracted a huge inflow of deposits by offering market leading introductory rates. But some of that “hot money” left Rabo when the intro rate ended. Now RaboDirect is attracting hot money again with a great base rate of 6.0 per cent.

UBank also has a base rate of 6.0 per cent and a bonus rate of 6.51 per cent if you have a regular direct deposit of $200 or more per month.

Virgin Money are trying to make a splash in the market with a four month introductory rate of 6.51 per cent, reverting to a 5.35 per cent base rate. Virgin are giving $50 to new account holders.

Source: Herald Sun