Internet Bank Account

Internet banks do offer great deals, but there are caveats to consider too.

Almost every internet bank account offers a better deal that your local bank can offer. So why don’t we all have an online account? Well, they are great value, but you should be aware of some warnings before you rush in- specifically customer service and security.

The internet bank account revolution seems terribly exciting. An internet bank account invariably offers a great rate of interest on your current account balance, which your high street bank doesn’t. But before you rush to switch, let’s look at the caveats.

Firstly, when things go wrong, you want somebody to talk to. Your branch bank gives you lousy interest because it has to employ real people to look after you. You ought to know your bank manager, and he or she is there to assist you. Before signing up to an online bank, ring their customer service number just to see how long it takes them to answer the phone. Of the internet banks, Smile and First Direct are particularly good at customer service.

Then consider fraud. It’s no good saying it won’t happen to you- it might. Most online banks do offer an anti-fraud guarantee that if you lose any money through fraudulent use of your account, they will replace it. But the burden of proof is on you, and it’s a drawn out process to get compensation. The fact is, online banks use the same password security systems as everyone else, and while the majority of us use our partners or pets names as passwords, it’s not too hard to see why fraud does happen. If that scares you, again use a branch bank.

These aren’t reasons to be put off an internet bank account entirely- but no bargain comes without some sort of trade-off.