Online Bank Account
Online bank accounts are a great way to save money on fees and also save time. Online bank accounts often have much lower fees than regular bank accounts, and they often have higher interest rates on their savings accounts. In part this is due to the savings the company makes on not having branches set up and not having to pay extra staff to run these branches.
Some of the online banks with savings accounts include ING Direct, RaboDirect and Ubank. Other major banks also have some online only banking products, but these sometimes don't match the discounts and returns the online only banks have. (You can compare this on our Bank Account Comparison Page)
You can get many of the products you would find at a regular bank at an online only bank, including home loans and sometimes personal loans and credit cards. When it comes to bank accounts you can get the three main types all online, transaction accounts, savings accounts and term deposits.
With a transaction account, you might be wondering how you can use this account everyday, without branch access, and if it's only accessible online. Firstly, these types of accounts aren't virtual accounts or cyber accounts, you don't need to be sitting in front of a computer transferring online money from here to there. The accounts work like a regular bank account, you'll get a debit card to use like a regular bank account, you can deposit your salary straight into the account like a regular account, and withdraw real (not virtual) cash from an atm using your card.
But How Do You Deposit Cash With No Branch Access?
There are a few ways to do this, as mentioned above you can elect to deposit your salary straight into this account, you can transfer money online from other bank accounts into this account, you can usually send cheques to a postal address which will be deposited into your account, and if you have cold hard cash, you can deposit this too with ING Direct, as they offer a service whereby you can deposit cash through Australia Post.
If you would rather a RaboDirect or a Ubank account and these do not allow you to deposit cash, one way you can get around it is to have a regular transaction account as well, deposit your cash through this regular bank's branch then transfer it from this account to the online only account, through internet banking. (It is very easy, and a lot simpler than you might think)
Where Do You Find These Online Only Bank Accounts?
MoneyBuddy has listed some of the online providers and put these accounts in a table for you, so you can compare some of the rates and fees that are available in the market. Visit our Online Bank Comparison Page, there you will find transaction accounts, savings accounts and term deposit accounts.