Friday, May 15, 2009
Category:
Consolidation
According to new research conducted by Halifax, the number of internet users that utilise online banking has risen from 29 percent in 2003 to 49 percent in 2008.
New research indicates that 68 percent of savers have an online savings account, and for 56 percent this is their favoured approach to managing their money.
Further key findings were uncovered, such as the fact that 64 percent of men prefer to manage their savings online compared to 49 percent of women. Where age is concerned, it would seem that those between 25 and 34 years of age are most inclined to embark upon e-saving, with 70 percent doing so. In contrast, 20 percent prefer visiting a branch and 1 percent prefer making a telephone call. 46 percent of internet users over the age of 55 manage their finances online and 40 percent prefer going into a branch. The research also revealed that 9 percent of savers make use of their online account on a daily basis, whereas 28 percent use it once a week.
Several Bank of England Base Rate cuts have left savers with reduced returns, but interest rates would not appear to be of paramount importance to the majority. In fact, just 13 percent feel that the headline interest rate is a feature for consideration when deciding upon a savings account. The most important factor for 46 percent is the way in which the account is managed, so as to ensure that it will fit in with their needs.
There are many reasons behind choosing to manage savings online. For example, 37 percent find it to be a straightforward means of transferring money between accounts. 28 percent appreciate the ability to access their account at any time of the night or day, and a further 18 percent feel that it provides the opportunity to monitor the level of their savings.
Halifax has revealed that online savers have a tendency to use their accounts at the beginning and the end of any given month, and more frequently at 9am on weekdays. In addition, new online savings accounts tend to be opened on Sunday evenings and Monday mornings. In searching for a new savings account, 34 percent of adults said that they have used to price comparison site and 11 percent said that they have used a savings product selector tool as an aide.
Head of Halifax Savings products, Flavia Palacios Umana, commented: "In a low interest rate environment it is encouraging to see that savers are making choices based on a variety of factors to ensure their savings account really does meet their requirements. Internet banking allows customers to access their money 24 hours a day whenever it suits them, making it easier for people to make the most of their savings."
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Those that have been organising their savings may also wish to consider reorganising any personal debts they have too. A debt
consolidation loan, one of many options to consolidate existing debts, could be used to settle existing personal loans and credit cards, leaving the borrower with just one monthly repayment as opposed to several. A debt consolidation loan could even lower the borrowers current outgoings, thus freeing up extra money to put into savings. If opting for a debt consolidation loan, it should be remembered that consolidating debt may increase the amount paid back overall and extend the repayment period of debts.
