| Money deposited in a savings account is only intended | | | | accomplish what real banks have done. They offered |
| to stay in the bank for a relatively shorter time span. | | | | almost the same spectrum of products that traditional |
| This account usually offers much lower interest rates | | | | banks have but offered them on consumer-friendly |
| than most bank accounts. But still, like many other | | | | deals- high interest rates and low fees.Online savings |
| accounts, it accumulates interests. The rate of which is | | | | accounts often offer significantly higher rates of |
| largely dependent on the conditions provided by the | | | | interest as compared to the contemporary savings |
| bank.Savings accounts are normally maintained by | | | | account. This deal may be attributed to the fact that |
| commercial banks, credit unions, loans and savings | | | | lesser expenses during online processing and that |
| associations, and some mutual savings bank that are | | | | online market is naturally rate-sensitive.Sadly, the |
| offering interests that can never be used as money. | | | | majority of the consumers are not yet prepared to this |
| However, the account may be utilized by writing a | | | | new treatment in banking. This in effect, brought down |
| check.These accounts allow customers to use parts | | | | most of such banks.But by the end of year 2000, ING |
| of their liquid assets, which may be used for any | | | | launched an optimized form of online-only banking. This |
| transactions. But before a savings account is used, the | | | | was rather successful and brought great increase in |
| balances in the savings account must first be | | | | the online banking industry. They created a much |
| transferred to checkable deposits or transaction | | | | simpler savings account transaction that pays higher |
| deposits or currency. But due to the simplicity of | | | | rates than the traditional banking. But this does not |
| transferring the saving accounts, they are often | | | | permit the use of ATM cards, checks, and other |
| termed as "money".Though the use of checks is often | | | | services. It was only intended as an account for which |
| not allowed, withdrawals are still easier when done | | | | your money may be safely guarded.For almost three |
| using the savings accounts. The Money Market | | | | years, ING had no other rivals in this system of banking. |
| Deposit Account or the MMDAs on the other hand | | | | But recently, many other banking institutions have |
| may restrict you on a limited number of transference | | | | followed suit. Some were the pioneers of the |
| of accounts and withdrawals.With the advent of the | | | | online-only banking who eventually died down during |
| Internet comes the development of a new system of | | | | the course yet returned to beat the market share ING |
| banking- the direct-to-consumer banking system. This | | | | has. Some of these banks offer the same services |
| particularly addresses online savings accounts. | | | | with that of the ING programs. Most have the same |
| Direct-to-consumer system allows direct access to | | | | principle of high interest rates and no unnecessary |
| savings accounts from the traditional bank online | | | | frills.One notable new entrant is the VirtualBank. This |
| where money naturally transfers by means of | | | | targeted the high-end techy society yet they offer |
| electronic bank transfer. There are two types of | | | | much lower rates as compared to the ING Bank. Thus |
| banking institutions that create and allow this form of | | | | they gained some consumers.Eventually, the industry |
| transaction- online-only banks and the traditional | | | | expanded sometime in 2003 until 2004. And by the |
| banks.Online-only banking is the answer of the | | | | year 2005, savings account virtually revolutionized |
| entrepreneurs to the growing consensus of the | | | | banking by means of online-only banking.Robert |
| general public of who usually make banking | | | | Thatcher is a freelance publisher based in Cupertino, |
| transactions through the internet. These banks tried to | | | | California. |