Web Savings Accounts

Saving with an online account is not just like putting money in a piggy bank in your bedside table; on the web a savings account can be more secure, give you better returns and be much less tempting than that piggy bank.These are just the beginnings of the benefits of an online savings account, and following is advice about how to stay safe, and keep saving on the web.

Where Internet Banking Has Come From

Online savings accounts have increased in popularity and now offer better interest rates and fee structures than ever before because more Australians are embracing internet banking. So how have we really been using technology in the much-anticipated 21st century?

Internet banking traffic in the 21st century:

• Hitwise measured internet traffic in 2001 and found that 18-24 year olds accounted for 23% of all traffic, but accounted for only 13% of traffic to internet banking sites.
• Younger Australians tended to use the internet more for education and entertainment purposes in the early 21st century.
• Online banking was instead popular with 25-34 year olds who made up 33% of internet banking traffic.
• While online banking can be conducted at any time of the day or night, in 2001 internet banking sites showed more traffic on weekdays than weekends, and the most traffic on Mondays and Thursdays.
• Hitwise also found traffic moving from one banking site to another, showing that manyAustralians had accounts with more than one provider.
• Almost 50% of Australian internet users had used online banking facilities when surveyed in 2000 by the Centre for International Economics, and ACNielsen.
• Also in 2000, 98% of Australian internet banking customers surveyed by the Angus Reid Group said they would continue to bank online, and 32% of internet users not already banking online intended to start using online banking in the near future.

Internet Banking Usage Now

The global financial crisis changed a lot of things about the financial landscape here and overseas:

• A report by market research company Synovate has shown that a quarter of Australians are using EFTPOS more now, than before the GFC.
• Australians would also rather use cash or cheques to pay for their everyday purchases and 36% prefer the more traditional methods over using a debit card.
• Australians surveyed said they were worried about online crimes and this was the main reason they tended towards the more traditional payment methods.
• Advancements in internet security and secure online banking mean login details often go through a double authentication process, internet banking sites have scrambled passwords or on screen keypads to stop keystrokes being monitored and stolen, and so there are many Australians missing out on safe and secure web based services which could save them time and money.

An example of online banking, from the Netherlands:

• The balances in Dutch online savings accounts in 2008 was 11 billion euro less than the end of 2007, with just over 55 billion euro saved in web based accounts; this was a drop in internet savings account balances for the second year in a row. The amount the Dutch have in internet savings accounts makes up more than two fifths of the country’s total savings balance.
• At the end of 2008, the average Dutch household had deposited 7,600 euro in internet savings accounts, compared to 9,200 euro at the end of 2007.
• These figures were released by Statistics Netherlands, who believe that the deposits in web savings accounts dropped, because the accessibility of the funds hindered long term saving, and so the funds were locked into fixed term savings accounts instead.
• Since January 2008 the Netherlands have also allowed their citizens to build up their pensions in a bank account called ‚Äòbanksparen’ which offers customers tax benefits. The total deposited since its inception was 287 million euro.

The Future of Web Savings Accounts

Younger generations of Australians have the reputation of spending more than they earn, using up all their disposable income on instant gratification with new cars, big TVs and expensive holidays with little regard for the future. However, that image of young Australians could be wiped out with the next generation, generation Z.

Generation Z report by Veda Advantage and Habbo:

• Currently in their teens, generation Z are worried about money. One in five teenagers is currently saving for a deposit on their first home so they won’t have to rely on financial support from their paren’ts or the government as their forbearers gen X and Y have done.
• The interview of 2,000 Australians between 12 and 18 years old revealed 70% were worried about money and were saving their pocket money for their future home, their education or a car.
• The report also revealed 64% of generation Z was using a savings account to protect their financial future.
• Where generation Y, currently 19 to 30 years old, had travel plans as a priority, generation Z are investing in their education and are looking to be one of the most responsible generations with their savings.
• While generation Z doesn’t have all of the financial knowledge and experience they need, they are able to find the information they need to make financial decisions online, and compare savings account interest rates and earn thousands of dollars more over the life of their savings plan.
• As generation Z starts saving for their first home, they have approximately 10 years to save for that goal. For example if a teen was saving for a 10% deposit on a $275,000 home in ten years time, they would only need to save around $44 a week earning 5% interest.

Web savings accounts don’t only have to be embraced by the younger generations as there are online accounts designed for savers with 10 year plans, and accounts for savers with a two year financial goal. For more information about the online savings accounts available, and to compare the interest rates and features to get the best deal use the Savings Account Finder™ comparison tables, before following our secure links to sign up online in ten minutes, today.

Top 3 Web Savings Accounts

Savings Account	Account Details	Maximum Variable Rate p.a.	Standard Variable Rate p.a.	Bonus Interest p.a.	Fees	Min Balance/Min Deposit
St.George Direct Saver	One of the most popular high interest savings accounts on the market.	5.75%	4.50%	1.25%	$$0	$0 / $0
HSBC Serious Saver	The HSBC Serious Saver.	5.80%	4.75%	1.05%	$0	$0 / $0
NAB iSaver	5.65% p.a. apply online	5.50%	4.15%	1.35%	$0	$0 / $0