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Take a minute to think about the last 10 banking transactions you’ve carried out. Did any of them require you to visit a bank branch or did you complete them all online?
The rise of online and mobile banking has transformed the way Australians manage their money. In fact, our combined online and mobile banking transactions make up 73% of all interactions Australians have with their bank, allowing us to quickly and conveniently access our money whenever we want.
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However, before you can choose a savings or transaction account, it’s important to compare online and mobile banking platforms to find the best online bank account for your needs.
Online banking refers to banking where you use your financial institution’s Internet banking platform or mobile banking app. It allows you to access your accounts 24 hours a day, 7 days a week at a time and place convenient to you.
You can use your bank’s online banking services to perform these essential tasks:
In most cases, online banking complements the other services offered by your bank, such as the ability to access your funds by visiting a branch or using an ATM. However, there are also special online savings accounts that you can only access over the Internet. There are even some banks that don’t have any physical branches and only operate online. You can find out more about online savings accounts and online-only banks farther down this page.
If you’re comparing online bank accounts, one of the most crucial factors to consider is the strength of each provider’s Internet banking platform. Internet banking allows you to manage your savings, transaction, credit card or home loan account through a convenient online portal, so make sure you take the following features into account when assessing each financial institution’s Internet banking platform:
You can find out more about how to compare Internet banking platforms in our guide to online banking. You might also be interested to know that finder.com.au’s annual Innovation Awards include a gong for the Best Internet Banking platform. In 2016, Commonwealth Bank’s NetBank platform took home this prestigious award.
Mobile banking has now overtaken Internet banking as the most popular way for Australians to manage their money. It allows you to access your bank account via your smartphone or tablet, which means you can do your banking on the go at any time of day.
Some of the features to consider when comparing mobile banking apps include the following:
For more information on how to choose a mobile banking app, check out our mobile banking guide.
You can manage some savings accounts entirely online. Logically known as online savings accounts, you manage these bank accounts via the Internet and get a higher rate of interest on your savings balance. They also charge minimal or zero fees, allowing you to reach your savings goals as quickly as possible, and provide 24/7 access to your funds.
There’s an extensive range of online bank accounts available from financial institutions all over Australia, so it’s important to weigh up your options before choosing an account. You’ll need to keep the following features in mind when comparing online savings accounts:
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The rise of Internet and mobile banking has seen the emergence of a new type of financial institution: online-only banks. As the name suggests, these banks don’t operate any physical branches and offer their products and banking services completely online. Well-known online-only banks in Australia include ING, ME and Rabobank.
One of the main strengths of online-only banks is that they have less overhead than banks that operate branch networks, which in theory allows them to pass on savings to their customers, such as fewer fees on savings or transaction accounts.
Another benefit of an online bank is convenience. In our time-poor world, these providers offer a fast, hassle-free way to manage your money whenever and wherever you are.
The main downside of course is that you are unable to have any face-to-face contact with your bank. While this is not a problem for some people, it’s a huge drawback for those who like the peace of mind that comes with being able to do your banking in person.
You can find more details on the pros and cons of this approach in our guide to online-only banking.
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