This is a guest article by Brandon Watts. If you are interested in contributing to Debt RoundUp, please follow our guidelines.
Online billing, invoices, statements, summaries… Increasingly it would appear that the whole world is being encouraged to manage their personal finances online including banking with online savings accounts.
Why? Well clearly there are benefits on both sides of the equation. For businesses, they’ll be able to reduce certain overhead costs. This could be simply powering the printer whose job it has formerly been to get paper out to customers, or admin staff who oversee this operation. Let’s not forget that mailing statements can be a cost intensive exercise, too.
Going online – or digitally emailing financial statements or reports – is quicker too. This means the business doesn’t have to worry about complaints from the loss, or delay, of information sending in the post.
The process for them is automated too. So with a click of a button, personal information can be sent at any time through an encrypted line – as it were. Again, this isn’t the same as the post, which is delivered during the day – if it arrives at all.
So, from a business point of view, by starting online business savings accounts companies are saving time, money and ensuring the recipient gets their communication directly and securely. What then does a consumer get?
Taking the example of services available from an online bank or savings provider, the benefits could be as follows.
Checking your balance, managing your payees or transferring funds with your online banking account is convenient in a number of ways.
The devices you are able to do all this business on is just one major benefit of an online account. As you probably well know, you can access online accounts via more than just a PC nowadays. There are also smartphones and tablet computers for example.
Furthermore you can access your banking from any person’s computer, laptop, smartphone or tablet. While the same might be true of cash machines, sometimes these charge you for withdrawals. To some extent, you might also find it easier to get your hands on a digital device to check your account than actually seeking out an ATM or bank branch. This is particularly true for those who live in rural areas.
You can also access your online account in your own time, free from the restrictions of an everyday branch. If you’re desperate to check your account at midnight then, you can. There’s no need to wait for the bank to open and rush down in your lunchtime.
Ease of use could similarly be argued. Why fill out forms and bring ID to a branch when all you need to do is log on, securely, and carry out all your transactions in one easy-to-use and manageable place?
It’s also feasible that you’ll be entitled to better rates or discounts when you opt for an online account. Many savings providers and banks offer their best discounts online – just like your regular high-street retailer. They normally do so for limited periods only and the race to sign up can be feverish.
As is the case with many kinds of online account, it can be easy to change or upgrade to another kind of account too.
Author Bio: Brandon Watts is a research student in Accounting & Finance, I am keen to keep myself updated about anything and everything related to business & finance. During my free time I love to play squash, experiment in my kitchen and blog about random things which I like to share with people!
Photo via trenttsd