If you’re researching online banking, you’ve come to right place. CANSTAR breaks down exactly what online banking is.
An online banking account is any savings and/or transaction account that allows you to perform your banking activities online via the internet. It can be done via an online banking system, such as PayPal, or through your registered bank.
An online savings account is a savings account where you manage your funds using the internet and earn interest on the balance. Many online savings accounts are “online only”, meaning you can’t make ATM withdrawals directly from the account. However, a growing number of online accounts are combined savings and transaction accounts, where you can make online and in person transactions using the account.
A combined online transactions and savings account can work out cheaper for those who make a lot of transactions in and out of the account. Earning interest adds value for someone who doesn’t want the fuss of transferring money in and out of a separate savings account.
According to the Canstar Blue 2015 banking survey of more than 3,500 Australian adults, online banking is now used by a staggering 90% of Australian customers. We were impressed to see how many seniors are getting online to do their banking.
Source: Canstar Blue
There are a few basic things you should be able to do using online banking or an online savings account:
Internet banking functions accessible in a browser:
Mobile banking functions accessible in an app:
A combined online savings and transaction account may well have some fees because of the ability to make many transactions. Some of the more common fees may include:
In this technological era, online banking seems to be the way to go for many consumers. However in saying that, like any other service, it’s important to do your research when it comes to making a purchase decision. We here at CANSTAR have compared over 50 online banking providers and put them in one easy-to-use comparison table for you to use.
Any advice provided on this website is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you. Consider the Product Disclosure Statement and Target Market Determination before making a purchase decision. Canstar provides an information service. It is not a credit provider, and in giving you information about credit products Canstar is not making any suggestion or recommendation to you about a particular credit product. Research provided by Canstar Research AFSL and Australian Credit Licence No. 437917. You must not reproduce, transmit, disseminate, sell, or publish information on this website without prior written permission from Canstar.