Online savings account

An online savings account is designed to provide at-call access to your funds via internet and phone banking. It usually offers a higher interest rate in exchange for limited fund access; there are usually no cheque and over-the-counter facilities but unlimited transactions via ATM, phone and internet. Most of them can also be used for EFTPOS purchases. Because it's a 'virtual' account, the bank reduces overhead costs and paperwork and passes the savings to you via competitive interest rates. This makes the online savings account a popular means of saving for short-term and long-term goals.