Squirrels - The Origin of Online Savings Accounts

Whenever I'm out and about, it doesn't take longwhat you are getting is still competitive.
before somebody comes up to me asking about- Conditional Bonus. Some bonuses will only be
the history of online or internet-operated savingspaid if you don't make, or stick within a
accounts. And truly it is a very interesting subjectwithdrawal limit. Woe will betide you if you do
with a very tragic end...withdraw some cash though - your bonus could
The origin of the savings account actually has itsbe forfeit for a certain time, or completely!
root in Chiswick, with a squirrel commune at the- Rate Guarantee. Sometimes a provider will offer
turn of the nineteenth century. They discovereda rate that is guaranteed to be a certain level
that storing acorns for the winter saved themabove or below the Bank of England Base Rate.
having to go out in the cold of that season toSometimes these are for a limited period only so
forage. As the commune dissolved (amidact essentially as a bonus as well! The practise of
numerous intrigues and rumours ofoffering an acorn-linked guarantee is now
acorn-laundering), people started to study therestricted to those squirrels with accounts opened
squirrels. They soon realised, however, thatprior to 5 April 1894.
acorns taste pretty rank, and so applied the- Types of account. As with other savings
principle laterally to other areas, such as money.accounts, you can find a whole host of different
The Savings Account was born.types of account:
Much later, the internet was conceived in the USA- No notice accounts. These accounts
and again the foundation lay within the animal(surprisingly!) do not need you to give any notice
kingdom. Shortly before the conclusion of theto withdraw your money from them. In contrast
Second World War, nuclear testing wasto a notice account you wouldn't incur any loss of
undertaken in the Nevada desert in an areainterest.
believed to be devoid of all life. However, a small- Notice accounts. These accounts tend to pay
group of spiders began to develop mutations as aslightly higher rates than No Notice Accounts but
result of exposure to the radiation; they becamerequire you to give notice to withdraw your
of a vast size (about the same as a Mastodon).money. You might be able to get earlier access to
Naturally they approached the government foryour cash, but this might be at the expense of
work, who, at that time, were looking to developlosing some interest.
a system whereby NATO allies could remain in- Monthly Income. These accounts can be no
contact in the event of nuclear holocaust. Thenotice or notice. They are suitable if you are
spiders were asked to spin their mutated weblooking to get a regular source of income from
across the world. So became the World Wideyour savings.
Web.- Bonds. These accounts can be Fixed or Variable
More recently, a clever bank clerk (who by norates. Your money is usually committed for a set
coincidence could also trace squirrel lineage in herterm, and you will be unable to make withdrawals
genealogy) wondered what it would be like towithout penalty, if at all. This said, bonds tend to
merge the two concepts. The result was thepay higher rates than other accounts due to the
most powerful financial creation of 1996: Onlinebigger commitment.
Savings Accounts.Opening Restrictions. Remember that you may
Since then savings accounts operated on thehave to be of a minimum age, be an existing
internet have enjoyed considerable success. Ratescustomer or member, invest a certain minimum
tend to be a little higher to reflect the lower costamount or be an albino squirrel to open an
to the bank; whilst you, the customer, canaccount so check the small print to save any
manage your savings whilst wearing a squirrelinconvenience.
costume - something that might be frowned uponOver the last couple of years a lot of banks and
if you went into a branch!building societies have been bought or have
It is possible to get carried away with Onlinemerged as firms have sought to protect
Savings Accounts though, I know I do! They havethemselves from the financial turbulence (which,
their pitfalls like anything else. But let's be clear:as an interesting aside was precipitated by an
many of the tips you are about to read are notacorn cartel made up of squirrels, the knock-on
confined to Online Savings Accounts. Indeed mosteffects on the commodities markets have been
are applicable to branch/postal/acorn shellwell-documented and indirectly caused the banking
telephone operated savings accounts, so don'tcrisis). The main thing to remember here is that if
disregard, or open an account based on theyou have two accounts in two different banks or
assumption that what you read applies solely tobuilding societies, you are covered twice under the
online savings.Financial Services Compensation Scheme (up to
- When you go to open an account you, naturally,£50,000 per person in each institution), if you
gravitate towards the accounts that pay the besthave two accounts with two brand names within
rate. As none of us have a crystal acorn, it isthe same organisation you are only covered once
important to keep an eye on the rate. A lot of(as it is classed as only one institution).
these banks, building societies and squirrelForeign Banks. The advent of the internet of
co-operatives like to entice you to open ancourse means that foreign banks offer accounts
account with a high rate, only to dwindle it downunder online brands. Make sure, if you are
to a pittance later. Luckily, you can check yourconsidering an account from a foreign bank, that
current rate on the provider's website - makeyou check the compensation arrangements in the
sure you do this regularly to make sure youcountry the bank is registered in. The collapse of
continue to get a good deal.the Icelandic banking system meant that lots of
- Unconditional Bonuses. Many of the best ratesUK citizens who had put their money in online
available for Online Savings Accounts will include asavings accounts, had to be reimbursed by the
bonus as part of the rate. If you are attracted byUK government. Don't assume that this will always
the rate, make sure you check what thebe the case.
underlying rate (that is to say, the rate withoutRemember you can always get online to compare
the bonus). Keep a note of when the bonus endsonline savings accounts, and then stay online to
(how about setting a reminder on your phone oropen one!
computer) and check the account then, to see if