The Lowdown on UK Online Saving Accounts

| November 5, 2012
Online Saving Accounts

Online Saving Accounts

Saving money is one of the top priorities nowadays for almost all Britons, unless you have any of your parents sitting in the Lords. However, it is very difficult to decide where to invest your money in order to ensure that you have it saved to meet your long-term financial needs. This becomes all the more true in the current environment, where we have seen London Stock Market crashing, most insurance companies liquidated and ‘bankers bailed out, workers sold out!’ The Chinese say that every crisis gives you an opportunity. An online saving account may be the one offered by this crisis.

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The online saving accounts offer account holders a unique way of saving their money. The low-down of it is that it ensures that you don’t have your money at your immediate disposal so that you can’t spend it immediately. Basically, it places two checks on account holders. First, the only way you can withdraw funds from your online account is by transferring funds into your bank account. Secondly, the time period required for this transfer varies from one bank to another. Generally speaking, it takes 2 to 4 days to transfer funds from your online account into your bank account. In short, this means that you won’t be able to use your hard-saved pounds whenever you feel tempted to buy a coat hung in the window of the shop on your way to office. In short, you can withdraw by only one method, which takes a few days to process your order. The system works by creating a buffer between your online savings and regular bank account.

The interest rates against these online accounts vary. Most UK online saving accounts offer you interest rates at around 2 %. However, some offer as low as 0.75 % while others offer up to more than 3.75 %. Some of these accounts also offer bonus interest rates, provided there is no frequent withdrawal. However, what you need to understand is that theUK online saving accounts are not like your building account. Some of these require you to have at least a few thousands in these to have these functional. Whether there is a lower limit in your case depends on the bank you choose. And it varies significantly!

As mentioned in the beginning, Britain has been thrashed worse than most other countries. Thanks to the policies by the current coalition-government, there seems to be no easy way out. The banks seem to be the only quarter which has been spared the bashing. Remember, university fees have been tripled. Whether you are a parent or a student, it WILL affect you. If you don’t save money now, you will have to borrow it later from a bank at far too extortionate rates. The government is going nowhere until 2015, and the policies currently in place shall remain so at least till then. The Pound also has a dependant, the Euro. The only way left to the British is to scrimp and save. That’s what an online bank account is all about!

The Lowdown on UK Online Saving Accounts

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