When the bank of England reduces the base rate it invariably means that the high street banks and building societies also reduce their rates. Many banks will often reduce their rates to a level much lower than the standard rate and this often means that we end up getting little of no interest at all.
Most of us suffer from inertia, malaise and procrastination when it comes to changing our bank accounts. Even though it has recently become a lot more easy to transfer from one bank to another most of us still will not make the move even when it means we will get more interest. There are many reasons for this including the fear of it all going wrong or the worry and stress of the actual transfer itself. This invariably means that we are left with sometimes significant amounts of money gradually being eroded by inflation.
One way you can increase the amount of interest you can get on your money without changing banks is by doing online banking. Online banking means that we can monitor and manage all our banking needs from home, often at any time of the day or night and on any day of the week. You are able to transfer money, pay bills, check on your balance and transaction history and even use online banking to manage your credit card if it is through the same bank.
Now the reason internet banking is often better for getting a higher rate of return on your money. Often you will be able to take advantage of online only accounts that offer a much higher rate of interest. This is because these accounts can only be managed online which means that these accounts are cheaper for the banks to manage. It is easy to take advantage of these high interest bank accounts online and can often be opened online with only a few clicks of the mouse. You can then transfer your money between your current account and your new higher interest account.
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