Most Australians go to the bank to keep their money and grow their savings. Banks offer a wide selection of services that aim to keep your money secure and help you build your savings plan. One of these savings and investment products is an online savings account. But is it safe?
In this article, let’s look into what an online savings is and its features that make it a safe option for our money.
- An online savings account, as the name implies, is offered by online-only banking providers. This means that there’s no physical bank branch to go to. Many will find this convenient since transactions can be done anytime, anywhere, while others may prefer to go personally to a bank.
- In general, online savings accounts tend to offer competitive rates as well as features that make banking more convenient. Since there are no physical bank branches involved, online banks don’t have to shell out money on overhead costs. That’s why they can offer customers high rates and low charges. In the end, you can get better returns on your money and let it grow more quickly.
- Traditional and online banks have their own security features. As for online savings accounts, these have security features in place. These include SMS codes when you purchase anything online and monitoring transactions. There’s also the automatic logout feature which happens when your online savings account has been left open for a certain period of time.
- Online savings accounts, and all other savings accounts in Australia for that matter, are insured by the APRA up to $250,000. What does this insurance mean to you? If your online bank goes bust, the government ensures that you will not lose your savings, as long as the balance is not more than $250,000.
Just like any savings and investment product, it is important to compare bank accounts as well as the Australian bank interest rates to check the highs and lows of each offering and enable you to make a well-informed choice. After all, your hard-earned money is involved here, and you surely don’t want to lose it. When doing the bank account comparison, you can also ask family members and friends for their experience on their respective online banks and see if it’s something that you can consider as well.
Do you have other ideas on Australian bank accounts and bank interest rates? Share your insights in the comments section.